Leading sustainable packaging solutions provider Orora has announced its financial result, with sales revenue up 4.9 per cent to $4.3bn, underlying net profit after tax up 8.5 per cent to $203m and underlying earnings before interest and tax (EBIT) of $320.5m, up 12.3 per cent.
In his results presentation, Managing Director and CEO Brian Lowe said the team’s agility and commitment to the company’s strategy had helped navigate market challenges and deliver the strong results.
“Against a backdrop of ongoing challenging market conditions, Orora has delivered another solid result for the fiscal year 2023, reporting an increase in EBIT and earnings per share,” Lowe said.
“The team have continued to navigate market pressures including inflation and supply chain challenges, and have remained disciplined in executing against our strategy. Their agility and commitment is reflected in our results.
“Double digit EBIT growth was delivered by OPS in North America, largely driven by strong performance in our Distribution business as a result of continued business optimisation gains, further operating efficiencies and active management of customer account profitability.
“The Orora Beverage business in Australasia has again proven to be resilient, driving double digit revenue growth supported by higher can volumes, improved mix and cost inflation recoveries. In line with expectations, EBIT was slightly up, reflecting the impact of lower glass volumes, offset by growth across all formats in cans. Importantly, the Australasian business returned to profit growth in 2H23.
“With continued robust cash generation and a strong balance sheet, the Group continues to make strategic capital investments to meet growing customer demand and remains well positioned for future investment and growth.”
Orora has continued to make progress in its sustainability goals, with an average of 38 per cent recycled content in its manufactured glass products. The company’s (circa) $25m glass beneficiation plant at Gawler is fully operational and more than 30,000 tonnes of new cullet sources were developed during FY23, with Orora’s cullet sourcing program now active in all mainland Australian states.
In addition Orora signed a new foundational solar farm PPA in FY23 with Epic Energy for 100 per cent offtake from the Mannum Solar Farm. This will provide the company’s South Australian facilities with access to 35MW of solar generated electricity from FY24.
Looking ahead Orora says its expects earnings to be higher in FY24, with continued strength in cans in Australasia expected to offset ongoing softness in glass from lower commercial wine volumes.