Head of Research at Evans and Partners Paul Ryan is our guest on the Morning Mail today. He discusses yesterday’s half year results from Brambles Ltd and Foster’s Group Ltd (which also confirmed that it would demerge its Wine business).
Margins at Foster’s Wine business surprised on the upside but were offset by tough market conditions in Beer. The demerger is on track for completion in May 2011, with the associated costs largely in line with our thinking.
Brambles management continues to impress with proactive revenue initiatives and synergistic acquisitions, but face sluggish consumer demand in key markets. Paul touches on the cyclical leverage of the CHEP pallet pooling business.
