Orora announces strong improvement in full year results, reflecting the benefits of disciplined and continued execution of strategy
Commenting on Orora’s FY21 results, Managing Director and Chief Executive Officer, Brian Lowe said:
“In a year that continued to present unique challenges due to COVID-19, I’m proud to say Orora delivered a financial result that reflects the team’s outstanding commitment, passion and resilience, and the company’s focus on delivering against the core strategies for each business.
“We were pleased to report an increase in both net profit after tax and underlying EBIT, demonstrating a solid contribution from all of our business groups across Australasia and North America.
“In Australasia the increase in EBIT was largely a result of stronger volumes across Cans and Closures, partially offset by declines in Glass as the impact of lower exports to China crystallised.
“North America delivered a 43.0% increase in EBIT on a constant currency basis, reflecting the disciplined focus on cost control and profit improvement programs, as well as improved trading conditions in the second half of the year.
“Our strategy is delivering, with focused execution improving our operations, stabilising our North American businesses and returning them to growth. We are also well positioned to pursue new growth opportunities as they emerge, both within our market-leading Australasian Beverage business as well as in North America.
“A strong balance sheet and cash flow provides the company with flexibility. We head into FY22 with positive momentum and the ability to invest where it will deliver the greatest long-term value. I am confident we have the strategies, business model and team capability in place to continue this momentum,” Mr Lowe said.
Orora progressed its sustainability agenda with significant advances on circular economy initiatives together with solid progress on the Group’s five-year Eco Targets1. Following a comprehensive review, the pillars of Orora’s sustainability program were redefined, clearly highlighting Orora’s focus areas - Circular Economy, Climate Change and Community.
Importantly, today Orora has committed to achieving net zero Scope 1 and 2 greenhouse gas emissions across its operations by 2050, with a well-defined plan to achieve a 40% reduction in these emissions by 2035. The pathway between 2035 and 2050 will be firmed up over time and will require advances in technology. The company also announced it has committed to a target of achieving 60% recycled content2 for glass beverage containers by 2025.
Commenting on sustainability, Mr Lowe said: “Sustainability is integral to the way we operate at Orora, and I am particularly pleased with the progress the company has made. In Australasia, we increased the use of recycled glass at our production site at Gawler, now taking the majority of recycled glass from the WA and SA Container Deposit Schemes and accessing other state initiatives where we can. Renewable energy provided 80% of our total domestic electricity requirements, secured through wind-generated electricity.
“In North America, OPS drove an average of 70% recycled content in the corrugated board manufactured for our customers. At OV, we introduced fabric made from 100% recycled PET bottles, used for customer advertising campaigns.
“We take a holistic approach, continuing to drive reductions across carbon emissions, waste to landfill and water use, as well as making progress in the areas of diversity, equity and inclusion. Our redefined approach to sustainability and our commitment to achieving net zero scope 1 and 2 greenhouse gas emissions by 2050, and 40% by 2035, along with our glass recycling target of 60% by 2025, are the next significant and logical steps in our sustainability journey.”
1 Refer to Orora’s 2021 Annual Report for detail on the company’s performance across its Eco Targets
2 Pre and post-consumer content