Orora achieves double-digit underlying earnings growth for third year in a row

Image credit: Orora/YouTube

Orora has announced another strong operational result for the year ended 30 June 2017, posting double-digit underlying net profit after tax (NPAT) for the third consecutive year.

According to the company, NPAT for the quarter ended 30 June 2017 was up 14.4% to $186.2 million, with earnings per share up 14.6$ to 15.6 cents.

Numbers revealed that sales revenue increased by 4.9% to $4,039.1 million, while earnings before interest and tax (EBIT) went up 11.1% to $302.3 million.

Orora also posted final ordinary dividend of 6.6 cents per share, 30.0% franked, with total dividend of 11.0 cents, up 15.8 cents.

Operating cash flow was $331.5 million – up from $313.8 million – while net debt now stands at $674 million, up from $630 million at 30 June 2016.

Managing Director and CEO, Nigel Garrard attributed Orora’s strong operating performance to the ‘strength and resilience’ of the Group’s core businesses, augmented by the company’s recent investments and the establishment of a national footprint for Orora Visual in the North American point of purchase (POP) and visual communication sector.

“Since listing on the ASX in late 2013, Orora has been executing ‘The Orora Way’ operating model, which encompasses the Company’s strategic pillars of enhancing the core, innovating to lead and investing to grow. The Group’s disciplined focus and successful delivery against this operating model has guided Orora to more than double earnings over that period,” Mr Garrard said.

“Orora’s strong cash conversion combined with the strength of its balance sheet, provides the Company with capacity and flexibility to continue to invest with discipline in innovation as well as organic and new growth opportunities.”

Orora Australasia delivered a 6.6 % increase in EBIT to $213.6 million, with sales revenue 2.3% higher to $2,001.6 million.

ASC said both Australasian business groups – Fibre Packaging and Beverage – delivered earnings growth despite flat economic conditions and higher input costs, whereas Orora North America reported EBIT that was 18.8% higher to $117.5 million, with sales revenue up 7.6% to $2037.5 million.

“Orora Australasia delivered solid earnings and sales growth which more than offset input cost headwinds,” Mr Garrard added.

“In North America, the business delivered constant currency earnings growth of 23.1% and now, with a second stream of earnings beginning to flow from Orora Visual, has contributed more than 50% of Orora’s sales for the first time.”

The company said that it plans to continue to drive organic growth and invest in innovation and growth in the year ahead, with constant currency earnings expected to be ‘higher than reported in FY17’, subject to global economic conditions.

Image credit: Orora/YouTube