Orora's Financial Results for Half Year Ended 31 December 2023

Orora Limited (ASX: $ORA) has reported its financial results for the half year ended 31 December 2023, showing an 11.0% increase in underlying earnings before interest and tax (EBIT) and a 0.5% increase in underlying net profit after tax (NPAT). The company's sales revenue was $2,139.1 million, with a 5.5% decrease (7.3% on a constant currency basis), and a statutory NPAT of $68.2 million. Orora's acquisition of Saverglass was completed in December, contributing to the financial results.

Executive Commentary on Financial Performance and Acquisition of Saverglass

The period was marked by a significant milestone for Orora, with the acquisition of premium global glass business Saverglass completed in December. Against a backdrop of challenging economic conditions, Orora once again delivered a solid earnings performance for the first half, with growth reported in underlying EBIT and NPAT. Sustained business optimisation gains with strong embedded pricing discipline delivered an increase in EBIT of 0.9% from OPS North America, despite being impacted by ongoing softness in the broader North American manufacturing industry. Underlying EBIT increased by 2.2% in Beverage Australasia, reflecting another robust performance from the team, with continued volume growth and improved product mix in cans volumes partially offset by lower glass volumes. Our results reflect the ongoing passion, resilience and focus of our team, delivering a commendable set of results in the current market environment, while also successfully completing the Saverglass acquisition. As we enter the second half of FY24, we look forward to continuing to deliver on our strategy, transitioning Saverglass into the Orora Group and building momentum across the organisation. Orora retains a strong balance sheet and with robust cash generation, the company remains well positioned for ongoing organic investment.

Summary of Financial Results and Outlook

Orora Limited (ASX: $ORA) reported an increase in underlying EBIT and NPAT for the half year ended 31 December 2023, driven by sustained business optimisation gains and the successful completion of the Saverglass acquisition. The company's strong cash generation and robust balance sheet position it well for ongoing organic investment. Implementation is progressing well with multiple value creation activities underway following the acquisition of Saverglass, and near-term synergies of approximately $15 million are expected to be progressively realized from FY25. Orora continues to make progress toward its sustainability goals and expects higher EBIT in FY24, excluding the EBIT contribution from Saverglass. The outlook remains subject to global and domestic economic conditions, and currency fluctuations.