Orora has reported strong financial results for the first half of the 2025 financial year, with earnings seeing a solid boost following its business restructuring.
The company’s focus is now firmly on its global beverage packaging division after selling its Orora Packaging Solutions (OPS) and Closures businesses, a move that has strengthened its financial position, as stated in a media release.
Managing Director and CEO Brian Lowe emphasised the company’s transformation, stating, “In the first half of FY25, we continued to transform the Orora Group.”
“This now enables us to focus on the global beverage industry through our market-leading Glass and Cans offerings.”
Despite overall earnings growth, Orora faced challenges, particularly due to the temporary shutdown of its G3 glass furnace in Gawler, which was delayed by bad weather and equipment issues.
This, along with a slow recovery in European demand, affected earnings in certain areas.
To adapt to market conditions, Orora is adjusting its operations. The company said will close its oldest furnace in Gawler by late 2025 and shift some production to its facility in the UAE.
Additionally, Orora said it plans to modernise its glass plant in Belgium, which will become the main production site for European wine and champagne bottles.
“We have managed softness in commercial wine and beer volumes in Australia for several years,” Lowe said.
“In light of this, we have undertaken a review of glass capacity across the Australasian market, resulting in the decision to transition to a two-furnace operation at Gawler. This will improve utilisation and efficiency while lowering costs.”
Meanwhile, Orora’s Cans business continued to perform well, benefiting from ongoing investments in expanding production.
A new production line was commissioned in New South Wales last year, and another is in the works for Queensland.
Following the sale of OPS, Orora has launched a share buyback program to return funds to shareholders.
The company is also making strides in sustainability, reporting progress on its goal to use more recycled glass and reduce emissions.
The newly rebuilt G3 furnace in Gawler is now running on advanced technology that cuts energy use and emissions significantly.
Looking ahead, Orora expects steady performance in the second half of the year, with improving conditions for its Glass and Cans businesses.
However, Lowe acknowledged that external factors such as global and domestic economic conditions, currency fluctuations, and potential US tariffs could influence performance.
“The pace of recovery in European demand remains uncertain,” he said. “However, some improvement in order intake suggests better volumes in the second half. For our Cans business, we expect an improved growth rate, supported by capacity expansions in Revesby and Rocklea.”
