Full year results for packaging giant Orora have with underlying net profit after tax (NPAT) up 4 per cent to $217m, earnings before interest and tax (EBIT) 3.7 per cent higher to $335.2m and earnings per share (EPS) up 3.7 per cent to 18 cents per share.
Commenting on Orora’s result, managing director and CEO, Nigel Garrard, said: “Orora has delivered another year of earnings growth, with underlying NPAT, EBIT and EPS all higher, despite challenging economic and market conditions, particularly in North America.”
“The positive result underlines the value of Orora’s portfolio of businesses, serving established market segments and spread across geographies in Australasia and North America, with solid profit growth in Australasia helping to offset lower earnings from North America.
“Orora has been proactive in responding to the challenging market conditions by completing a group wide restructuring initiative which resulted in recording a significant item expense after tax of $20.8m. This initiative impacts both Australasia and North America and aims to drive efficiency,as well as reset the cost base to better match expected market conditions.
“In terms of the segment results, the Australasian Fibre and Beverage businesses continue to demonstrate strength and resilience,withrevenue growth and earnings benefits froma continued focus on operating efficiency and investments in assets and innovation driving profit growth, despite further input cost pressure.
Orora Australasia delivered EBIT of $246.6m for the period, a 6.2 per cent increase over last year. Sales revenue was 2.1 per cent higher to $2.15bn.
Earnings were higher across both Australasian business groups – Fibre and Beverage – despite higher input costs and flat market conditions. Fibre earnings benefited from record production volumes at B9, which again exceeded design capacity, sales growth in targeted market segments, benefits from recent organic and innovation investments and the continued focus on manufacturing and operating efficiencies.
Earnings growth in the Beverage business was driven by higher Can volumes, favourable product mix and continued improvement in operating efficiencies.Orora North America EBIT declined 3.6 per cent to $116.6m versus pcp. Sales revenue was 21.9 per cent higher to $2.6bn, primarily reflecting early contributions from the Bronco and Pollock acquisitions, and the effects of a weaker Australian dollar.
In local currency terms, EBIT declined 11.1 per cent to US$83.4m, and sales revenue grew 12.4 per cent, to US$1.8bn compared to last year.