Orora sees first half earnings soar to $165.8m, up 7.3%

Image credit: Orora

Australia-based global packaging manufacturer Orora has announced its financial results for the half year with earnings before interest and tax (EBIT) of $165.8 million, up 7.3 per cent driven by strong earnings growth in North America and robust earnings performance in Australasia.

Orora reported that sales revenue rose by 6.6 per cent to $2.26 billion at constant exchange rates while statutory net profit after tax (NPAT) was up by 7.8 per cent to $108.1 million. 

Commenting on Orora’s interim results, Managing Director and CEO, Brian Lowe said, “Our results for the first half of the fiscal year 2023 demonstrate the resilience of our business, as well as a steadfast commitment to delivering against our strategic priorities.”

Lowe said that the company continued to forecast higher earnings this fiscal year despite inflationary pressures and supply chain complexities in key markets.

“Our North America business performed strongly, delivering an increase in revenue and double-digit earnings growth, driven by performance in distribution, as the business retains its focus on driving cost-to-serve efficiencies as well as business optimisation, pricing discipline and customer account profitability.” the CEO explained. 

Lowe also pointed out that the Australasian business continues to produce consistent and tough earnings. 

He said growth in the volume of cans and the pass-through effect of higher aluminium costs both contributed to a rise in income. 

Meanwhile, earnings for the first half of FY23 were slightly lower than anticipated, as was to be expected, mostly due to the timing of inflationary effects and lower wine and beer glass volumes.

“Commendably, the Orora team has deftly navigated challenging market conditions to deliver a solid half-year financial performance. Orora’s balance sheet and operating cash flow remain strong, positioning the Group firmly for future investment and growth,” the CEO noted.

In its forward-looking statement, Orora said earnings are expected to be higher in FY23, “reflecting the resilience of the business in what is a challenging year of economic conditions.”