Orora's Financial Performance for FY24

Orora Limited (ASX: $ORA) has reported its financial results for the year ended 30 June 2024. The company achieved a sales revenue of $4,697.6m, marking a 9.5% increase, and an underlying earnings before interest and tax (EBIT) of $404.0m, reflecting a substantial 26% rise. The underlying net profit after tax (NPAT) also saw a positive growth of 10.2% to reach $223.7m. Orora is currently in discussions to potentially divest the OPS business, aiming to strengthen its balance sheet and support future growth and shareholder returns.

Executive Commentary on FY24 Results

The past financial year was a transformative period for Orora, as we completed the acquisition of premium global glass business Saverglass, one of the most significant milestones in the company's history. While economic headwinds persisted across a number of regions, Orora has reported EBIT of $404.0m, up 26% which includes seven months of contribution from Saverglass, and was slightly ahead of our trading update issued in April. We continued to navigate market challenges including lower customer demand for commercial wine, craft beer and premium spirits, as well as some sustained higher costs across the supply chain. Despite these factors, our team has demonstrated tremendous determination throughout the year to deliver a resilient result.

Summary of FY24 Results and Outlook

Orora's FY24 results demonstrate a resilient performance amidst challenging market conditions, with significant growth in sales revenue and underlying EBIT. The company's discussions to potentially divest the OPS business reflect its strategic ambition to focus on beverage containers and accelerate its growth trajectory. The formation of the Global Glass business unit, comprising Saverglass and the Gawler facility, positions Orora well for future market improvements. Additionally, Orora's sustainability progress and outlook for FY25 indicate a continued focus on driving innovation and sustainable solutions. The company's outlook for FY25 remains subject to global and domestic economic conditions and currency fluctuations.