Amcor (AMC) packaging spin-off, Orora (ORA) continues to make headway in growing its businesses which were unwanted by its former parent.
The group, which left the Amcor orbit in late 2013, yesterday said it lifted full year profit 25.9% in the year to June (on a pro forma basis) and forecasts improved earnings for the current year (a big call compared to the reticence many other companies are showing).
Orora reported net profit of $131.4 million, up from last year’s pro forma $104.4 million.
Earnings before interest and tax rose 17% despite what chief executive Nigel Garrard said were subdued market conditions in North America and Australasia, with the company increasing market share.
Mr Garrard said earnings this financial year are expected to be higher than in 2014-15.
Final dividend was set at 4 cents a share, making a full year payout of 7.5 cents per share, up 25% and a payout ratio of 68.8%
Net debt was trimmed to $607 million from $636 million a year ealier.
ORA 1Y – Orora sees better FY16
Mr Garrard said “The 2015 financial year has been a successful period for Orora in which the Group delivered on its objectives and generated strong earnings growth and increased returns.”
“Operationally the Group delivered strong EBIT growth of approximately 17% despite subdued market conditions in both Australasia and North America. This was driven primarily by benefits from business improvement programs, which are slightly ahead of target, and increased market share in the Glass and North American businesses.”
“Through continued financial discipline, Orora has successfully converted this earnings growth to underlying cash flow, which further strengthened the balance sheet, lowered debt servicing costs and enabled the Group to deliver approximately a 26% increase in NPAT and EPS,” Mr Garrad said in yesterday’s statement.
