Glass, can and closures manufacturer has reported an underlying net profit after tax before significant items of $156.7m, up 23.7 per cent on the previous year, or 34.1 per cent on a constant currency basis.

Sales revenue was $3,538.0M, down 0.8 per cent on FY20, although on a constant currency basis, underlying sales revenue up 7.8 per cent, while EBIT was $249.1M, up 11.6 per cent, or 17.3 per cent on a constant currency basis.

Commenting on Orora’s FY21 results, Managing Director and Chief Executive Officer, Brian Lowe said: “In a year that continued to present unique challenges due to COVID-19, I’m proud to say Orora delivered a financial result that reflects the team’s outstanding commitment, passion and resilience, and the company’s focus on delivering against the core strategies for each business.

“We were pleased to report an increase in both net profit after tax and underlying EBIT, demonstrating a solid contribution from all of our business groups across Australasia and North America.

“In Australasia the increase in EBIT was largely a result of stronger volumes across Cans and Closures, partially offset by declines in Glass as the impact of lower exports to China crystallised.

“Our strategy is delivering, with focused execution improving our operations, stabilising our North American businesses and returning them to growth. We are also well positioned to pursue new growth opportunities as they emerge, both within our market-leading Australasian Beverage business as well as in North America.”

As well as delivering its financial results, yesterday Orora also committed to achieving net zero Scope one and two greenhouse gas emissions across its operations by 2050. Lowe said the company was “putting its money where its mouth is” regarding sustainability and that the investments the company was making into reducing its environmental impact were something it was very happy to make.

Lowe said: “Sustainability is integral to the way we operate at Orora, and I am particularly pleased with the progress the company has made. In Australasia, we increased the use of recycled glass at our production site at Gawler, now taking the majority of recycled glass from the WA and SA Container Deposit Schemes and accessing other state initiatives where we can.

“Renewable energy provided 80 per cent of our total domestic electricity requirements, secured through wind-generated electricity.

“In North America, OPS drove an average of 70 per cent recycled content in the corrugated board manufactured for our customers. At OV, we introduced fabric made from 100% recycled PET bottles, used for customer advertising campaigns.

“We take a holistic approach, continuing to drive reductions across carbon emissions, waste to landfill and water use, as well as making progress in the areas of diversity, equity and inclusion. Our redefined approach to sustainability and our commitment to achieving net zero scope 1 and 2 greenhouse gas emissions by 2050, and 40 per cent by 2035, along with our glass recycling target of 60 per cent by 2025, are the next significant and logical steps in our sustainability journey.”

Looking ahead Orora said it expects FY22 to be broadly in line with FY21 with continued strength in its can business offsetting subdued glass volumes in China.

Andy Young

Andy joined Intermedia as Editor of The Shout in 2015, writing news on a daily basis and also writing features for National Liquor News. Now Managing Editor of both The Shout and Bars and Clubs.

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