Sustainable manufacturer Orora Beverage announced its full-year financial results, with strong performance increases to underlying earnings before interest and tax (EBIT) of $320.5 million, up 12.3 per cent.
The Australia-based packaging manufacturer reported significant earnings growth in North America, with EBIT up 15 per cent in local currency, and solid earnings performance in Australasia, with EBIT up 1.8 per cent in line with forecasts.
Brian Lowe, managing director and chief executive officer at Orora said the ASX-listed company in Australasia has once again shown that it is resilient, with double-digit revenue growth underpinned by increasing can volumes, an improved mix, and cost inflation recoveries.
In accordance with forecasts, EBIT increased modestly due to increases in cans of all forms offsetting the impact of lower glass volumes.
“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,” stated Lowe.
He underscored that the Orora team has been working diligently to implement its vision while navigating market pressures such as inflation and supply chain issues.
“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,” Lowe explained.
He added, “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.”
Additionally, Orora made significant progress towards its ‘Our Promise to the Future’ sustainability goals, which are aligned with the pillars of Circular Economy, Climate Change, and Community.
In line with the previous year, Orora achieved an average of 38 per cent recycled content in its manufactured glass goods under the Circular Economy pillar.
Orora continues to invest in capacity and capabilities expansion to meet the industry’s high growth prospects.
In Australasia, a $30 million can ends capacity expansion project at the company’s Ballarat location was finished in March, while the installation of a new $80 million multi-size cans line at Dandenong was completed in June.
Construction has also begun on a new $85 million multi-size can line at Revesby, which is expected to be operational in 2H25.
Orora Beverage announced its innovative Helio by Orora offering in July 2023, a first-to-market can decoration and high-speed digital printing solution that provides customers with the benefit of fast turnaround and smaller quantity print runs suited to new products and promotional campaigns.
Through additional investments in sustainability programs and digital capabilities, the OPS company in North America has focused on improving the business model and value proposition for customers.
