Commenting on Orora’s results of the first half year ended December 31, 2024, Managing Director and Chief Executive Officer Brian Lowe said, “In the first half of FY25 we continued to transform the Orora Group, simplifying our portfolio through the sale of the OPS business as well as the sale of the Closures business. This now enables us to focus on the global beverage industry through our market-leading Glass and Cans offerings.
“With a strong balance sheet following the OPS transaction, we have reduced debt and are returning value to shareholders through an on-market share buyback. We are now focused on organic growth opportunities, particularly through capacity expansion of the Cans business and leveraging our Global Glass network to cater for all segments of the beverage industry.
“Market conditions remain challenging globally. Against this backdrop, the Group reported EBIT of AUD 120.8 million, up 24.6 percent, driven by the inclusion of six months of Saverglass earnings, compared to one month in the pcp.
“Excluding Saverglass, EBIT was AUD 58.4 million representing a decrease of 30.1 percent. This was largely due to the G3 furnace shut-down at Gawler which was hampered by bad weather and equipment delays, impacting EBIT by AUD 24 million. De-stocking across the Saverglass business continues, and while we have noted some encouraging signs of improved order intake, the pace of recovery in Europe remains uncertain.
“Orora has managed softness in commercial wine and beer volumes in Australia for several years, and in light of this has undertaken a review of glass capacity across the Australasian market. This has resulted in the decision to move from a three furnace to two furnace operation at Gawler, and close our oldest furnace, the G1 furnace, in the second half of calendar year 2025. In turn, some existing production volumes will be redirected to our manufacturing site in the UAE. Furthermore, we plan to invest in modernising our Ghlin glass manufacturing site in Belgium, where all European wine and champagne bottles will be produced.”
The full report is available here.