Orora shares surge as HY profit grows 32%
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More news: Bottle and can manufacturer Orora was the top performer on the ASX 200 in early trade after delivering a 32% rise in first-half underlying profit.
Orora shares were up 7.3% to $2.36 at 10:50am AEDT.
RBC Capital Markets analyst Mark Wilson said he expected the result to be "quit well-received" by the market, despite lower-than-expected depreciation and amortisation and $33 million in restructuring costs.
What they said: "The underlying result was broadly in-line with market expectations, the company maintained full year guidance, and a new 10% share buyback program was also announced," said Wilson.
Orora posts 32.2% profit increase in half-year driven by strong cans demand
The news: Orora reported a surge in first-half underlying net profit, driven by strong growth in its cans business and a shift toward aluminium packaging across the majority of non-alcoholic beverages.
The numbers: The glass bottle and can manufacturer reported a 32.2% increase year-on-year in underlying half-year net profit to $77.8 million, topping consensus estimates of $76.1 million, according to Visible Alpha.
Statutory net profit after tax stood at $58.9 million, slightly above $58.7 million from the prior corresponding period.
Total revenue was up 9.7% to $1.12 billion, exceeding analysts' estimates of $1.07 billion.
The company declared an interim dividend of 5 cents per share, unchanged from a year earlier, and above consensus estimates of 4.9 cents per share.
The context: The company attributed the profit growth to favourable market conditions in cans, an ongoing shift in consumer preference toward aluminium and expansion in new beverage categories.
The cans division delivered 11.2% growth in the first-half, largely driven by increased demand for multi-size cans from Queensland-based consumers.
Orora maintained its FY26 outlook and said it expects earnings before tax for its cans business to exceed the prior corresponding period, with volumes tracking in line with long term growth trends.
What they said: "With strength in our operating cashflow, cash realisation and balance sheet, and major cans capacity expansion completing in FY26, Orora can continue to make meaningful shareholder returns through regular dividends and an ongoing on-market buy-back", Orora CEO Brian Lowe said.
"We enter the second half with confidence and a clear execution agenda."
The source: ASX
