Orora full-year profit flat as it looks to divest packaging solutions
Make us a preferred source
Make us a preferred source on Google
The news: Packaging giant Orora has cut its dividend after reporting a flat full-year profit and said it is in discussions to potentially divest the packaging solutions business.
The numbers: Statutory profit for the year to 30 June was barely changed at $185.2 million, while revenue rose 9.5% to $4.29 billion. Excluding the contribution from its September 2023 acquisition of French premium bottle maker Saverglass, underlying earnings before interest and tax rose just 0.9% to $323.4 million, higher than its guidance range of $307 million to $317 million.
It will pay a final dividend of 5 cents a share, down from 9 cents a year ago.
The context: Orora said it continued to navigate market challenges through the year, including lower customer demand for commercial wine, craft beer and premium spirits, as well as sustained higher costs across the supply chain.
CEO Brian Lowe said the company is in discussions to divest its Orora Packaging Solutions business, given the company’s long-held strategic ambition to focus on beverage containers.
“Substantial work remains to finalise the divestment, and this will only proceed if the value and terms align to our internal view of OPS’ value,” he added.
The announcement comes a day after Orora announced its board rejected a $3.3 billion takeover proposal from Lone Star Fund XII Acquisitions because the bid materially undervalued the company. The group previously downgraded its full-year earnings expectations in April citing softer demand and volumes across its business, months after acquiring Saverglass for $2.26 billion.
The source: ASX announcement
