Costco Wholesale Corp

NASDAQ:COST   10:34:21 AM EDT
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Other Pre-Announcement

Brambles Says Will Not Invest In Plastic Pallet Pool For Customers Supplying To Costco

Published: 06/30/2022 06:27 GMT
Costco Wholesale Corp (COST) - Brambles Plastic Pallet Decision.
Confirmed Unable to Proceed With Investment in a Plastic Pallet Pool for Customers Supplying to Costco Wholesale Corporation in Us.
Continues to Have a Strong Relationship With Costco and Its Suppliers.
Brambles Ltd Sees Conversion to Plastic Pallets and Associated Implications Will Likely Be Phased Over Multiple Years.
Neither Costco Or Its Suppliers Willing to Agree to Required Commercial Terms & Price Premium to Enable Co to Meet Its Roci Targets.
Do Not Anticipate a Shortage of Demand for Co's Pallets in United States.
Continue to Expect Improvement in Underlying Profit Between FY21 and FY25 to Be Weighted to Chep Americas Segment.
Conversion to Plastic Pallets Without Adequate Cost Recovery, Dilutive to Brambles' Roci.