Our strategy to focus on the core drivers of value reflects our priorities as we leverage Brambles’ strengths to support our customers and deliver attractive returns for our shareholders, over the long term.
Today, Brambles operates in an increasingly competitive environment characterised by ongoing macroeconomic uncertainty and a customer base navigating the challenges of a rapidly evolving retail landscape and changing consumer behaviour. In this context, our priority as a company is to build upon the strength of our business model and competitive advantage to position Brambles as a partner of choice for our customers, as we help them build the supply chains of the future.
Brambles delivered constant-currency sales revenue growth of 6% and Underlying Profit broadly in line with the prior year. Return On Capital Invested (ROCI) decreased 2.3 percentage points to 17.0% and Cash Flow from Operations increased by US$72.7 million.
Our FY17 performance was driven by solid revenue growth across most of our businesses, with notable contributions from our global IFCO RPC businesses and pallets businesses in Europe and Latin America. Our Underlying Profit performance was impacted by challenges in our US pallets business, which faced competitive and direct costs pressures. We are taking steps to address these challenges and it was good to see new business wins in the US pallets business during the second half of the year. A full analysis of our financial results is on pages 12 to 16 in the Operating & Financial Review.
“Our FY17 performance was driven by solid growth revenue and profit across most of our business”
“The value of our inherently sustainable business model continues to be recognised by our customers and investors”
In February, I announced a realignment of Brambles’ global organisational structure and a new executive leadership team. This included a flattening of the structure to allow me to be closer to the businesses and to achieve greater consistency of approach across the Group. The executive team, outlined on pages 20 to 21, also reflects a better balance between the operating and functional leaders of our business. Following the divestment of Aerospace and formation of the HFG joint venture, Containers is no longer a separate operating segment under the new structure.
People, Safety & Sustainability
Thanks to the professionalism of our people and deeply embedded safety culture, the Brambles Injury Frequency Rate has continued to improve and I am pleased to report no fatalities occurred in our operations during the year.
During FY17, we made good progress towards our 2020 sustainability goals. The value of our inherently sustainable business model continues to be recognised by our customers and investors, who choose to partner with and invest in Brambles to make a sustainable difference in their supply chains and businesses. Details can be found on pages 4 and 5 in the Operating & Financial Review.