By Sneha Kumar

Oct 24 (Reuters) - Brambles shares fell more than 4% on Thursday after the Australian logistics firm reported flat growth in first-quarter volumes and sales below analysts' expectations.

The stock fell as much as 4.2% by 0145 GMT, hitting its lowest in nearly two months, while the benchmark index was up 0.1%.

Like-for-like volumes declined 1% due to lower U.S. produce volumes and a normalisation of pallets on hire in Australia, countering net new business growth of 1%.

The pallet maker reported a 3% rise in sales, missing RBC Capital Markets' estimate of a 5% growth.

However, the company reiterated its fiscal 2025 forecasts, which include sales revenue growth of between 4%-6% at constant currency.

"At face value, the sales print of 3% (constant foreign exchange) initially looked a little soft relative to the 4%-6% sales guidance that BXB has provided for FY25," RBC Capital Markets analyst Owen Birrell said in a note.

"However.... we highlight the 1Q25 mix is positive for free cashflow, with the price gains and flat volume outcome implying limited pressure on the pooling capex/sales."

(Reporting by Sneha Kumar; Editing by Subhranshu Sahu)

((Sneha.Kumar@thomsonreuters.com;))