Sustainable packaging provider Orora has reported its first-half results, with a strong performance delivering increases to sales revenue, up 13.9 per cent to $2.26bn, EBIT up 7.3 per cent to $165.8m and statutory net profit after tax, up 7.8 per cent to $108.1m.
Orora operates in multiple markets and strong earnings growth in North America, and a “robust earnings performance” in Australasia helping the company to this strong result.
Speaking about the company’s results in the Australasian market, Managing Director and Chief Executive Officer Brian Lowe said: “In Australasia revenue was up 20.6 per cent to $534m, this was driven by three per cent net volume growth, 10.8 per cent related to higher aluminum costs, that get passed through to our customers and 6.8 per cent of inflationary costs that has been recovered in price.
“Importantly while price largely drove the top-line revenue growth, volumes grew revenue by a total of three per cent. Growth in can and new glass product categories off-set a decline in commercial wine and beer glass sales.
“Our can product mix was improved as demand for cans in both mainstream and craft beer, as well as carbonated soft drinks, continued to grow, underpinned by ongoing, strong consumer demand for cans.
“As the glass business continues to diversify and consumer preferences continue to shift from glass and plastic to can format, we will continue to optimise the product of both cans and glass.”
This shift is seeing Orora expand its Dandenong manufacturing facility with a second canning line, which will be complete by June 2023, adding 10 per cent additional canning capacity to the business.
Lowe added: “Commendably, the Orora team has deftly navigated challenging market conditions to deliver a solid half-year financial performance. Orora’s balance sheet and operating cash flow remain strong, positioning the Group firmly for future investment and growth.”