Orora's FY24 Trading Update

Orora Limited (ASX: $ORA) has revised its FY24 earnings forecast, expecting a slightly lower Group EBIT compared to FY23. The updated forecast for Group EBIT, excluding the earnings contribution from Saverglass, is between $307m - $317m, down from $320.5m in FY23.

Executive Commentary on FY24 Trading Update

OPS in North America has experienced volume softness, leading to a forecasted ~3% decrease in revenue for 2H24. Despite ongoing softness in customer demand in Glass, the strong performance from Cans in Australasia is expected to offset it. The acquisition of Saverglass has not shown noticeable improvement in forward customer demand, resulting in a reduction in forecast sales tonnage in 2H24. The forecast EBITDA for FY24 has been reduced from ~€98m to €84m - €88m due to continued destocking and subdued markets in certain regions.

Summary of Orora's FY24 Trading Update

Orora has updated its FY24 earnings forecast, anticipating a slightly lower Group EBIT compared to FY23. OPS in North America is expected to see a ~3% decrease in revenue for 2H24, while the strong performance from Cans in Australasia is projected to offset the softness in Glass. The acquisition of Saverglass has not shown improvement in forward customer demand, leading to a reduction in forecast sales tonnage in 2H24. This has resulted in a decrease in forecast EBITDA for FY24. The company's outlook remains subject to global and domestic economic conditions, and currency fluctuations.