Orora cuts FY26 earnings guidance as Middle East conflict impacts UAE facility
Make us a preferred source
Make us a preferred source on Google
The news: Packaging manufacturer Orora has reduced its full-year earnings guidance due to “both direct and indirect impacts” from the conflict in the Middle East.
The numbers: Orora said reported EBIT for its bottle making business Saverglass in FY26 is now expected to be between €52 million ($86 million) and €59 million.
This includes a “direct” impact of between €9 million and €11 million, which will be disclosed as a significant item in Orora’s FY26 report, relating to the pause of glass production at the Ras al Khaimah (RAK) facility in the United Arab Emirates.
The RAK facility has been transitioned to a closed loop ‘hot’ operation since the start of the Middle East conflict and the closure of shipping routes in the region, which means the furnace is kept warm with no bottle production taking place.
The RAK furnace represents around 15% of Saverglass production capacity, with most of the recent production geared towards global premium and ultra-premium wines for the North American market. The production of those bottles will now shift to Mexico from late FY26.
Orora has also attributed lower-than-expected volumes and lower average selling price and margin to the impact of weaker customer confidence following the start of the war. The company said this “indirect” impact is expected to have an €11 million to €16 million impact on its second-half EBIT.
The company’s underlying EBIT for Saverglass in FY26, which excludes direct, war-related impacts, is now expected to be €63 million to €68 million, compared to previous guidance that was “broadly in line” with FY25 EBIT of €79.2 million.
The source: ASX
