Commenting on Orora’s full year results, Brian Lowe, Managing Director and CEO, said, “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 AUD 404.0 million, up 26 percent, 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.
“The financial performance of Saverglass for the first seven months under Orora ownership was consistent with our trading update in April, in light of continued customer de-stocking. Saverglass is a quality business with a compelling value proposition.
“We enter the new financial year with a newly formed Global Glass business unit comprising Saverglass and our Gawler facility, and while the external environment remains challenging, we are well placed to capitalise on growth opportunities when market conditions improve.”
Commenting on discussions to potentially divest Orora Packaging Solutions, Mr. Lowe added, “Since the de-merger of Orora in 2013, we have steadily transformed the portfolio of businesses within the Orora Group. These decisions have been consistent with the creation of sustainable shareholder value and the company’s long-held strategic ambition to focus on beverage containers, given our strong view about the attractive long-term growth profile of this segment.
“Saverglass has provided the final building block in this strategic journey such that this focus can be materially accelerated. Therefore, we are currently in discussions to potentially divest the OPS business. Substantial work remains to finalise this divestment, and this will only proceed if the value and terms align to our own internal view of OPS’ value. The creation of value for our shareholders remains a priority.”
The full report is available here.