Industry packaging manufacturer Orora has today reported its full year result for the 2024 financial year, highlighting ‘resilient earnings’ despite the challenging market conditions.
The company reported its sales revenue was up 9.5 per cent to $4.7bn, underlying earnings before interest and tax were up 26 per cent to $404m and its underlying net profit after tax increased by 10.2 per cent to $223.7m.
Commenting on Orora’s full year results, Managing Director and Chief Executive Officer, Brian Lowe said: “The past financial year was a transformative period for Orora, as we completed the acquisition of premium global glass business Saverglass, one of the most significant milestones in the company’s history.
“While economic headwinds persisted across a number of regions, Orora has reported EBIT of $404m, up 26 per cent which includes seven months of contribution from Saverglass, and was slightly ahead of our trading update issued in April.
“We continued to navigate market challenges including lower customer demand for commercial wine, craft beer and premium spirits, as well as some sustained higher costs across the supply chain. Despite these factors, our team has demonstrated tremendous determination throughout the year to deliver a resilient result.
“Improvements undertaken in the OPS business in North America in recent years is evident in EBIT margins growing to 5.6 per cent, despite softness in the macroeconomic environment impacting volumes across the broader manufacturing industry.
“Across our global Beverage business, excluding Saverglass earnings contribution, underlying EBIT increased two per cent despite lower revenue. Earnings declined in Australasian Glass primarily due to a challenged commercial wine market, however this was offset by our Cans business, with record cans production delivering volume and earnings growth, and production capacity maximised across our sites.
“The financial performance of Saverglass for the first seven months under Orora ownership was consistent with our trading update in April, in light of continued customer destocking. Saverglass is a quality business with a compelling value proposition.
“Encouragingly, industry commentary as well as our own inventory data indicates improvement in the destocking issue, with trends expected to normalise in early calendar year 2025. We enter the new financial year with a newly formed Global Glass business unit comprising Saverglass and our Gawler facility, and while the external environment remains challenging, we are well placed to capitalise on growth opportunities when market conditions improve.”
Orora also stated that it is making “good progress” across its sustainability program, including an average of 50 per cent recycled content in its manufactured glass products, up from 38 per cent in FY23, and an average of 72 per cent recycled content in the aluminium flat sheets and coils used to make its cans, up from 57 per cent in FY23.