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Brambles CEO to retire, profit flat

AAP logoAAP 17/08/2016 Marty Silk

Brambles still expects to grow underlying profit more than sales revenue in 2016/17, and says its long-standing chief executive is standing down.

News of the CEO change comes as the supply chain logistics firm's full-year net profit came in flat, up just one per cent to $US587.7 million ($A766.9 million), while revenue lifted two per cent to $US5.5 billion.

However, in constant currency terms - 60 per cent of Brambles' revenue is generated in currencies other than the US dollar - full-year profit rose 8.0 per cent.

Tom Gorman will retire as CEO next February and leave the company in June 2017. Former chief executive of UK-base packaging firm Rexum, Graham Chipchase, will step in as CEO-designate on January 1.

"My decision to retire was not easy but I believe this is the right time for me to leave," Mr Gorman said.

"Brambles is in great shape, our strategy is sound, and our team is aligned and committed. I wish Graham every success and I am looking forward to my future away from full-time executive life."

He said Brambles' net profit had been underpinned by strong performances in both developed and emerging market businesses.

There was also a significant boost in profit from the $155 million sale of Brambles' LeanLogistics transport management software business.

Mr Gorman said the company was also on track to deliver its five-year target, set in 2013, of underlying profit growth out-performing revenue growth.

Providing there is no material change in underlying economic conditions, Brambles expects underlying profit to grow between nine and 11 per cent, in constant currency terms, and revenue to rise by between seven to nine per cent in the 2017 financial year.

Brambles declared a final, partially franked, dividend of 14.5 cents per share, up from 14 cents.

BRAMBLES' PROFIT FLAT

* Profit up 1pct to $US587.7 mln

* Revenue up 2pct to $5.5 bln

* Final dividend of 14.5 cent, partially franked, up from 14 cents

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