Profit growth track record continues
Orora has announced strong profit growth for the year ended 30 June 2018 with underlying NPAT and EPS up 12.0% and 11.5% respectively.
Commenting on Orora’s performance, Managing Director and CEO, Nigel Garrard, said: “Orora has continued its year-on-year track record of delivering earnings growth, strong cash generation and disciplined capital management to report double-digit profit growth, despite flat trading conditions in key markets."
"The result included benefits from the sustained focus on driving organic growth and margin improvement in the core businesses combined with incremental benefits now starting to flow from capital investments and the annualisation of earnings from Orora Visual acquisitions completed during FY17.
"Consolidation and integration of investments was the underlying focus in FY18, with a number of asset refresh and innovation investments made across the business, including the Fibre Packaging New South Wales restructure and the introduction of two state-of-the-art high speed digital printers to both the Australasian and North American markets. There was also steady progress on the integration of Orora Visual, especially in the second half, and the implementation of the ERP roll out in Orora Packaging Solutions, with completion expected by the first quarter of FY19.
"Orora also announced two separate power purchase agreements (PPA) with renewable energy providers to supply wind- generated electricity to Orora’s operations in South Australia, Victoria and New South Wales, where the Company operates its largest and most energy intensive plants. Under the PPAs, Orora has secured competitive long-term supply of renewable energy for volumes equivalent to 80% of Orora’s total electricity requirements in Australia.
"The PPAs, together with Orora’s $23 million investment in a waste water treatment plant at the Botany B9 Recycled Paper Mill (B9) and the Company’s status as one of Australia’s leading recyclers of glass and cardboard, provide a stable and sustainable foundation for the Australasian business over the long term.
"Importantly, Orora’s strong cash conversion 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 30 June 2018 available under ASX releases.