Packaging manufacturer Orora reports sales revenue of $4.3m

Packaging solutions provider Orora has released its financial results for F23, reporting a growth in sales revenue of $4,291.3 million, up 4.9 per cent.

Underlying earnings before interest and tax (EBIT) was up 12.3 per cent to $320.5 million, while statutory net profit after tax (NPAT) was down 1.2 per cent to $184.8 million.

Brian Lowe, Managing Director and Chief Executive Officer of Orora, described the results as “solid” amid a backdrop of challenging economic conditions.

“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.

“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,” said Lowe.

Strong earnings growth in North America was reported, with EBIT up 15.0 per cent on a local currency basis, and resilient earnings performance in Australasia was reflected, with EBIT in line with expectations, up 1.8 per cent.

“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,” he said.

Lowe said the company remains well positioned for future growth in the coming financial year with robust cash generation and a strong balance sheet expected to continue along with strategic capital investments to meet growing demand.

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