Brambles 2006 Annual Report - Alle jaarverslagen

22
Brambles
2006 Annual Report
Europe: Reusable Plastic Containers reduce
product damage, increase load stability and
provide an efficient loading and unloading
solution for CHEP customers.
Americas: Perfect Plants, like this one in
Florida, combine knowledge and best practices
from CHEP service centres around the world
and are projected to deliver US$100 million in
productivity savings over the next five years.
Australia: CHEP’s reusable automotive crates
provide Ford with a more efficient supply chain
by improving ergonomics and eliminating waste
while also protecting parts in transit.
CHEP performed well in all regions during the year and
the highlights of its financial performance included:
• sales of US$3.0 billion, up 8%;
• comparable operating profit 1 of US$703.8 million,
up 32%; and
• return on capital invested of 25%, up from 18%
last year.
The growth in sales was due to existing customers
growing their businesses, existing customers awarding
CHEP new business and the CHEP sales force winning
new customers.
At the same time, greater operational efficiency and
improved asset control led to lower costs.
Overall customer satisfaction, which is measured and
monitored on an annual basis, also improved when
compared with the previous year.
In September 2005, Dave Mezzanotte was appointed
Chief Operating Officer of CHEP with responsibility for all
operational activities around the world. He was previously
President of CHEP Americas. Mr Mezzanotte has retained
responsibility for CHEP USA, while each of CHEP’s
principal regions – Europe, Asia-Pacific, Africa, Canada
and Latin America – report to him.
Mr Mezzanotte also sponsors the nine global councils
that bring together CHEP leaders from around the world
to identify and leverage best practices, align policies and
procedures and share resources for the maximum benefit
of CHEP and its customers.
These global councils are important vehicles for
standardisation that drive continuous improvement
across the globe. Improvement ideas are created by
council members or identified through the sharing of
best practices. The Zero Harm Council, for example, is
focused on driving step change improvements in safety
performance. This year, the Zero Harm Council created and
launched a new measurement and global audit process to
enhance results. Similarly, the Logistics Council was able
to identify a best practice network optimisation process in
CHEP Europe that was launched across the globe.
CHEP Americas
CHEP Americas – which includes the USA, Canada,
Mexico, Brazil, Chile and Argentina – delivered a particularly
strong performance driven by robust sales growth and
further improvements in operational efficiencies.
CHEP Americas is managed as three operating units –
the USA, Canada and Latin America. The USA contributed
80% of sales, Canada 10% and Latin America 10%.
Total sales for CHEP Americas increased by 10% to
US$1,326.2 million, representing 45% of total CHEP sales.
The main drivers of this sales growth were organic growth
with existing customers and the addition of more than
1,200 new customers across the region.
Comparable operating profit rose by 56% to
US$324.9 million as the increased sales were
complemented by greater efficiency and lower costs.
Outside the USA, CHEP Canada continued to increase
sales at double digit rates in a mature market while
CHEP Latin America is achieving a growth rate of more
than 25% per year.
CHEP Europe
CHEP Europe sales grew by 6% to US$1,252.7 million
and comparable operating profit rose by 20% to
US$263.6 million.
Completing the implementation of activity-based pricing
and enhancing customer relationships were major focus
areas for CHEP Europe. Activity-based pricing is critical to
profitable growth in Europe because it aligns pricing more
appropriately with the way customers use CHEP pallets.
This closer link with customer activity results in improved
asset control and therefore reduced capital expenditure,
as well as increased margins and cash flow for CHEP.
The move to activity-based pricing in Europe has now been
completed. Customer surveys confirmed improvements in
customer satisfaction across the business.
In addition, a range of initiatives has resulted in improved
asset management as evidenced by a higher control ratio in
Europe (the number of pallet returns divided by the number
of issues).
Notes:
All comparative trading measures referred to are in constant currency. The Directors believe constant currency comparisons to be relevant measures
of business performance. Constant currency and comparable operating profit are defined on page 171.
1 There was no difference between comparable and statutory operating profits in each of the 2006 and 2005 financial years.