Solid profit growth for the half year

Orora has announced solid profit growth for the half year ended 31 December 2018 with NPAT up 7.6% to $113.7 million, EBIT 5.9% higher to $175.1 million and EPS up 6.8% to 9.4 cents per share.

Commenting on Orora’s performance, Managing Director and CEO, Nigel Garrard, said: “Orora has announced another solid result, with the Group delivering profit and EPS growth in line with expectations, despite challenging economic and market conditions across the Group’s core trading regions.”

“The Australasian Fibre Packaging and Beverage businesses have continued to demonstrate their quality and resilience, with benefits from recent organic growth and innovation investments, combined with an ongoing focus on improving manufacturing and operating efficiency, helping the businesses to offset input cost pressures and deliver profit growth. The combined constant currency earnings of the North American Orora Packaging Solutions (OPS) and Orora Visual businesses were marginally lower with both businesses encountering margin and cost pressures in generally tough market conditions. On a positive note, the roll out of the ERP system was completed with the important optimisation phase now ahead.

“Orora has continued to execute its stated strategy of disciplined return driven allocation of growth capital, with the acquisition of Bronco (effective 1 September) and Pollock (effective 1 December). These acquisitions expand Orora’s exposure to the large and growing Texas market and increase the capability and scale of the business.

“In Australasia, further capital was invested in the ongoing asset refresh program in Fibre as well as a number of other customer driven initiatives and warehouse expansions at the Glass site in Gawler. The two state-of-the-art digital printers located in Australia and North America were successfully commissioned in the period and are delivering enhanced speed, quality and flexibility to customers.

“Importantly, Orora’s strong cash flow capability, combined with the strength of its balance sheet, continues to provide Orora with capacity and flexibility to invest with discipline in innovation as well as organic and new growth opportunities that deliver sustainable value creation for shareholders,” Mr Garrard said.

More information about our results for the full year ended 31 December 2018 available under ASX releases.