Global packaging solutions provider Orora Limited has announced its financial results for the half year ended 31 December 2023.
In December 2023, Orora Limited acquired French glass business Saverglass for $2.16 billion from US private equity group Carlyle. And its 33 per cent share in the high-end glass bottle market with major global spirits brands such as Grey Goose, Glenfiddich, and Hennessy on its books.
The company’s half-yearly results see an increase of 11.0 per cent underlying EBIT and 0.5 per cent underlying NPAT as it enters a new phase with Saverglass as part of the Orora Group.
Over the period, sales revenue was $2,139.1 million, down 5.5 per cent; underlying earnings before interest and tax (EBIT) of $184.1 million was up 11.0 per cent.
Excluding Saverglass, underlying EBIT was up 3 per cent, while continued optimisation gains reflected in a 0.9 per cent increase in EBIT in North America and resilient earnings performance in Australasia, with EBIT up 2.2 per cent.
Commenting on Orora’s half-year results, managing director and CEO Brian Lowe said: “The period was marked by a significant milestone for Orora, with the acquisition of premium global glass business Saverglass completed in December. Against a backdrop of challenging economic conditions, Orora once again delivered a solid earnings performance for the first half, with growth reported in underlying EBIT and NPAT.
“Sustained business optimisation gains with strong embedded pricing discipline delivered an increase in EBIT of 0.9 per cent from OPS North America, despite being impacted by ongoing softness in the broader North American manufacturing industry.
“Underlying EBIT increased by 2.2 per cent in beverage Australasia, reflecting another robust performance from the team, with continued volume growth and improved product mix in cans volumes partially offset by lower glass volumes.”
Commenting on Saverglass’s performance, Lowe said for the first month under the ownership of Orora, it was in line with expectations.
“Our results reflect the ongoing passion, resilience and focus of our team, delivering a commendable set of results in the current market environment while also successfully completing the Saverglass acquisition.
“As we enter the second half of FY24, we look forward to continuing to deliver on our strategy, transitioning Saverglass into the Orora Group and building momentum across the organisation. Orora retains a strong balance sheet, and with robust cash generation, the company remains well positioned for ongoing organic investment,” Lowe said.
The Orora Group half-yearly report said that while global consumer demand remains uncertain, EBIT is expected to be higher in FY24, excluding EBIT contribution from Saverglass.
It continued to report that in Australasia, the ongoing strength in cans in FY24 is expected to offset the ongoing softness in glass from lower commercial wine volumes.
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