Orora on growth streak

Australian packaging giant Orora has achieved double digit NPAT, EBIT, and EPS growth for the third consecutive year, as its full year results are published.

The company’s net profit after tax increased 14.4 per cent from the 2016 FY results, reaching $186.2m. Orora’s earnings before interest and tax (EBIT) rose 11.1 per cent, with 2017 bringing in $302m.

Sales revenue is up 4.9 per cent from the prior corresponding period (pcp), with a result of $4bn.

Orora Australasia delivered a 6.6 per cent increase in EBIT, reaching $213.6m, while sales revenue rose 2.3 per cent from the pcp to $2bn. Orora notes that both Australasian business groups – Fibre Packaging and Beverage – delivered growth despite flat economic conditions and higher input costs.

The company has increased its net debt, now at $647m from $630m, which can partly be attributed to Orora’s expansion into the North American POP market.

Nigel Garrard, CEO, managing director, Orora says, “Operationally the business has delivered another strong performance, driven by the strength and resilience of the group’s core businesses and augmented by investments Orora has made to drive growth, particularly with establishing a national footprint for Orora Visual in the North American point of purchase (POP) and visual communication sector.

“In North America, the business delivered constant currency earnings growth of 23.1 per cent and now, with a second stream of earning beginning to flow from Orora Visual, has contributed more than 50 per cent of Orora’s sales for the first time.”

As for its Australian business, Garrard says, “Orora Australasia delivered solid earnings and sales growth which more than offset input cost headwinds.

“Since listing on the ASX iin late 2013, Orora has been executing ‘The Orora Way’ operating model, which encompasses the company’s strategic pillars of enhancing the core, innovating to lead and investing to grow. The group’s disciplined focus and successful delivery against this operating model has guided Orora to more than double earnings over that period.

“Importantly, Orora’s strong cash conversion combined with the strength of its balance sheet, provides the company with capacity and flexibility to continue to invest with discipline in innovation as well as organic and new growth opportunities that deliver sustainable value creation for shareholders.”

 

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