Orora’s consistent performance drives solid increase in earnings, with underlying EBIT up 12.3% and underlying EPS up 11.1%
Commenting on Orora’s full year results, Managing Director and Chief Executive Officer, Brian Lowe said:
“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.
“The team have continued to navigate market pressures including inflation and supply chain challenges, and have remained disciplined in executing against our strategy. Their agility and commitment is reflected in our results.
“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.
“The Orora Beverage business in Australasia has again proven to be resilient, driving double digit revenue growth supported by higher can volumes, improved mix and cost inflation recoveries. In line with expectations, EBIT was slightly up, reflecting the impact of lower glass volumes, offset by growth across all formats in cans. Importantly, the Australasian business returned to profit growth in 2H23.
“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.” Mr Lowe said.
Orora made good progress on ‘Our Promise to the Future’ sustainability goals aligned to the pillars of Circular Economy, Climate Change and Community. Under the Circular Economy pillar, Orora achieved an average of 38% recycled content in its manufactured glass products, in line with the prior year. The company’s ~$25m glass beneficiation plant at Gawler is fully operational and more than 30,000 tonnes of new cullet sources were developed during FY23, with Orora’s cullet sourcing program now active in all mainland Australian states.
Under the Climate Change pillar, the Group is committed to achieving a 40% reduction in greenhouse gas emissions for Scope 1 and 2 by 2035. Scope 1 & 2 greenhouse gas emissions decreased by 4.8% (utilising Market-based factors for S2) and 12.9% (utilising Location-based factors for S2) from FY19 baseline. To help address climate change risk, Orora signed a new foundational solar farm PPA in FY23 with EPIC Energy for 100% offtake from the Mannum Solar Farm. This will provide the company’s South Australian facilities with access to 35MW of solar generated electricity from FY24. Site preparation for the new oxygen plant to upgrade the G3 glass furnace at Gawler to oxyfuel technology has also commenced, which will reduce G3 furnace emissions by ~20%.
More information about our results for the full year ended 30 June 2023 is available under ASX releases.