Brambles: Earnings Look Resilient Despite Risk of Global Economic Slowdown

Economic activity is set to slow across Brambles’ core markets in fiscal 2024. In the U.S., where Brambles generates an estimated third of operating earnings, we expect real gross domestic product to grow 1.6% over calendar 2024, a marked slowdown from forecast growth of 2.5% in 2023. U.S. nonfarm inventories, a barometer for Brambles’ operating conditions, jumped in the September quarter of 2023. But we think this will likely prove an aberration from a downward trend as the economy slows and firms pare stock levels.