Orora delivers strong profit improvement and a 22.9% improvement in earnings per share

Commenting on Orora’s half year results, Managing Director and Chief Executive Officer, Brian Lowe said:

“I am pleased to report that Orora delivered a strong result for the first half of the fiscal year 2022. Our performance reflects the unwavering focus of our team on executing our strategic priorities in the context of a global pandemic. 

“The Group reported an increase in underlying net profit after tax and underlying EBIT on the prior corresponding period, demonstrating the continued strength of the Group’s diversified packaging assets and sustainable earnings. 

“Our North American business produced another outstanding result in the first half, continuing to drive improvements in operating and financial performance, exercising pricing discipline in a higher inflation operating environment and delivering strong earnings growth in both the manufacturing and distribution OPS businesses. 

“And we are pleased with the Australasian business which reported a solid result, having largely mitigated the impacts of lower wine Glass volumes as the impact of Chinese tariffs on Wine were cycled, with 100% of this capacity now redeployed to new product categories. Cans demand remains strong, with solid volumes achieved across all categories. 

“Underpinning our results is the ongoing commitment to the Group’s corporate strategy, with clear strategic priorities formulated for each business unit. A strong balance sheet and operating cash flow ensures Orora is well positioned for growth, and continues to provide operating and strategic flexibility as we move forward. Our team remains disciplined and focused on delivering against our strategies, and I look forward to continuing our positive momentum in FY22.” 

Sustainability Update 

The company made good progress on its sustainability goals aligned to the refreshed pillars of Circular Economy, Climate Change and Community. Importantly, Orora is well on track to achieve its 2025 goal of 60% recycled content1 in the glass packaging it manufactures. Contributing to this goal is construction of a $25M glass beneficiation plant at Gawler, South Australia, which is expected to be commissioned in Q4 FY22. The company is also well on track to achieving a 40% reduction in greenhouse gas emissions for Scope 1 and 2 by 2035 through a range of initiatives which include alternative furnace technologies. 

 1 Pre and post-consumer content

More information about our results for the half year ended 31 December 2021 available under ASX releases.