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Orora's core businesses help lift profit

Simone Ziaziaris  |  10 Aug 2017Text size  Decrease  Increase  |  

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SYDNEY - [AAP] Packaging business Orora (ASX: ORA) has lifted its full-year profit by 1.5 per cent to $171.1 million, driven by strength from the company's core businesses.

Net profit before the $15.1 million cost of decommissioning the Petric Mill site, came in at $186.2 million while sales revenue for the 12 months to June 30 was up 4.9 per cent on the previous year at $4.04 billion.

Orora's Australasia arm delivered $213.6 million in earnings before income and tax, up 6.6 per cent on the prior corresponding period, while its sales revenue increased 2.3 per cent to $2 billion.

Both Australasian business groups--Fibre Packaging and Beverage--posted higher earnings than the prior year, despite flat Australian economic conditions and higher input costs, the company said on Thursday.

Australian fibre packaging sales were higher due to stronger earnings and margins driven by cost improvements, while higher glass volumes were supported by growth in the wine industry and higher beer volumes.

Despite steady growth in beer and energy drinks, beverage can volumes were lower than the prior year, dragged down by a slowing demand for soft drinks.

Earnings in Orora's North America business rose 18.8 per cent to $117.5 million and sales revenue grew 7.6 per cent to $2.04 billion.

Orora says it expects constant currency earnings to be higher than that reported in 2017, adding that it will continue to drive organic growth and invest in innovation in 2018.

Orora shares were trading 8.42 per cent higher at $2.96 at 1414 AEST.

ORORA'S RESULTS BOOST:

* Full year net profit up 1.5pct to $171.1m

* Revenue up 4.9pct to $4.04bn

* Final dividend of 11 cents, partially franked, up 1.5 cents

 

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