Orora has delivered a strong result for the first half of the fiscal year 2022 – ending 31 December 2021 – announcing a net profit after tax (NPAT) of $102.7 million, up 12.9 per cent from the prior corresponding period.
The sustainable packaging and visual solutions provider reported a sales revenue of $1.98 billion, up 9.6 per cent from the same time last year and an underlying earnings before interest and tax (EBIT) of $154.5 million, up 10.4 per cent from the previous corresponding period.
Orora managing director and CEO Brian Lowe said the results reflect the company’s “unwavering focus” on executing its strategic priorities in the context of a global pandemic.
“The group reported an increase in underlying net profit and underlying EBIT on the prior corresponding period, demonstrating the continued strength of the group’s diversified packaging assets and sustainable earnings,” he said.
“Our North American business produced another. Outstanding result in the first half, continuing to drive improvements in operating and financial performance, exercising pricing discipline in a higher inflation operating environment and delivering strong earnings growth in both manufacturing and distribution OPS business.
“And we are pleased with the Australasian business which reported a solid result, having largely mitigated the impacts of lower wine glass volumes as the impact of Chinese tariffs on wine were cycled, with 100 per cent of this capacity now redeployed to new product categories.
“Cans demand remains strong, with solid volumes achieved across all categories.
“Underpinning our results is the ongoing commitment to the group’s corporate strategy, with clear strategic priorities formulated foe each business unit. A strong balance sheet and operating cash flow ensures Orora is well positioned for growth, and continues to provide operating and strategic flexibility as we move forward.”
The company also provided an update to its sustainability goals, saying it is “well on track” to achieving its 2025 goal of 60 per cent recycled content in the glass packaging it manufactures.
Contributing to this goal is the construction of a $25 million glass beneficiation plant at Gawler, South Australia, which is expected to be commissioned in the fourth quarter of this year.
The company also said it is on track to achieving a 40 per cent reduction in greenhouse gas emissions for Scope 1 and 2 by 2035 through a range of initiatives which includes alternative furnace technologies.