Orora boosts earnings despite debt

Global packaging giant Orora has booked a 28 per cent jump for its full year revenue, with a net profit of $168m, propelled by US acquisitions and its land sale in Australia.

The group also posted significant sales revenue growth, up 13 per cent from the same period last year spiking at $3.8bn.

After revealing its profitable year, Orora’s shares surged by 10 per cent to an ordinary dividend of 5 cents per share, rising by 26.7 per cent.

Despite soaring growth from all angles, Orora still carries net debt, which climbed three per cent from $607m to $630m for the financial year.

[Related: Half-year results for Orora]

Orora chief executive Nigel Garrard says the group’s generally strong result was bolstered by a blend of organic growth, its fierce acquisition model and the sale of its land in Queensland.

“The 2016 financial year saw a continuation of strong execution of the Orora Way operating model, which delivered higher earnings and cash flows and increased returns,” says Garrard.

“At the same time Orora has invested both organically and on acquisitions to generate future growth. This year’s result also benefited from the profit on sale of land at Petrie, Queensland.”

Orora’s glass, beverage and fibre packaging divisions all enjoyed similar growth, its fruit and produce packaging and logistics business particularly strong due to the construction of facilities in Bundaberg and Mareeba, with plans to build a further site in Innisfail later this year.

The packaging giant forecasts increased earnings for the year ahead as the group persists with its strategic growth.

 “It is expected the group will continue to drive organic growth and invest in innovation and growth during FY17, with earnings expected to be higher than reported in FY16, subject to global economic conditions,” adds Garrard.

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