Brambles, coming off a solid profit, is buoyant about future growth, particularly in China, India and Europe, but the uncertainty about its key contract with Wal-Mart in the US continues to cloud the company's prospects.

Brambles shares had their biggest single-day drop since its relisting in November 2006. The stock slumped $1.11, or 13%, to $7.41.

The world's biggest maker and distributor of pallets posted a net profit of $US648.7 million in the year to June, a fall of  50%  from $US1.29 billion the year before.

However, this result had been bolstered by proceeds from the sale of the Cleanaway UK and Asia businesses the previous year.

In like terms, profit after tax before special items was $US626.5 million, up 7%.

This was due to higher interest costs from the increased debt arising from the $US2.9 billion buy-back of  278 million shares.

Brambles' net profit in 2006-07 was $US613.4 million.Directors declared a final dividend of A17.5 cents per share, taking the full year dividend  total to A34.5 cents, a rise of 13%.

The final dividend is 10% franked and payable on October 9, with a record date of September 19.

Chief executive Mike Ihlein said Brambles was still working closely with Wal-Mart on a new deal, but operations would be affected by $30 million in transition costs.

Wal-Mart accounts for 25% of Brambles' Chep pallet business in the US.

"We understand why Wal-Mart is looking to achieve a change in its pallet flows,'' he said.

Finalisation of the agreement was taking longer than planned due to the complexity of  Walmart's network and involvement of another pallet provider.

"Our focus is on supply chain solutions ... our responsibility is to develop the best supply chain solution ... but the best is not the quickest,'' he said.

"We remain confident of a resolution. We have access to the most senior management in Wal-Mart.''

Mr Ihlein said Brambles was confident of sales growth in all businesses, including the Recall documentation division, with the company well positioned to achieve its aim of 10% compound revenue growth in the medium to long term.

Brambles was a late starter in China and India, but both countries would be "$US100 million revenue businesses in five years or so'', he said.