Australian pallet supplier Brambles Ltd (ASX: BXB) today reported sales revenue of US$4,146.8 million for the financial year ended 30 June 2010, an increase of 3 per cent on the previous equivalent period.

Statutory operating profit before finance costs and tax increased 1 per cent to US$724.5 million, while statutory profit after tax was US$443.9 million, up 2 per cent.

Cash flow was strong, reflecting tight financial controls and a reduction in capital expenditure, the company said.

Chief executive Tom Gorman said "This result, in particular the strong cash flow performance and our robust balance sheet, highlights Brambles' stability and resilience during a period of continued challenging economic conditions. We are focused on driving the next phase of growth."

"Our growth in sales revenue in the 2010 financial year of 3 per cent was driven by CHEP Europe, Middle East and Africa (EMEA), CHEP Asia-Pacific and Recall, which offset the impact on the group's financial results of a decline in sales revenue in CHEP Americas.

The company's CHEP pallet business in the Americas has consistently been underperforming.

A 5 per cent slump in sales from the CHEP pallet business in the US, its largest market, in the year to June again slammed the performance of the CHEP Americas division, which includes Latin America and Canada.

Mr Gorman said Brambles aimed to increase its sales in the small-to-medium enterprise market in the US. The company reaffirmed its commitment to wooden pallets in the country, despite its rivals enticing customers with plastic pallets.

''We think wood is not going away,'' Mr Gorman said, adding that Brambles had no plans to launch plastic pallets in the US, where it faces growing competition from companies such as Florida plastic-pallet maker iGPS.

Brambles issued guidance of $US740 million to $US780 million in operating profit for 2010-11, compared with $US693 in the year to June 30.

The company declared a final dividend of 12.5 cents a share on October 14, bringing the payout for the year to 25 cents, down from 30 cents in 2008-09.