Shares in packaging company, Orora (ORA) (a spin off from Amcor in 2013) jumped sharply yesterday after it surprised with very strong full year results with a 23.8% jump in underlying net profit after tax to $162.7 million for the year to June.
Sales revenue increased 13% to $3.8 billion, underlying earnings before interest and tax jumped 20.9% to $272.1 million and final ordinary dividend of 5.0 cents per share, 30% franked.
That saw total dividend of 9.5 cps, up 26.7% on 2014-15 and a pay-out ratio of 67.4%.
Group sales were up 13.0% to $3.8 billion; sales grew with sales in North America up 11.9% to US$1,378.8 million, with organic sales accounting for approximately more than half that growth (6% of the 11%). Its Australasian operations performed even better and reporting sales growth of 28.6% year on year to $1,893.2 million.
Orora’s managing director and CEO, Nigel Garrard said yesterday in the statement to the ASX:
“Operationally the Group delivered underlying EBIT growth of 20.9% despite subdued economic conditions and some input cost headwinds in Australia. Higher earnings were driven by benefits from group-wide business improvement and cost control programs, organic volume growth and initial contributions from acquisitions made in North America during the year.”
The company said it expects to grow sales and earnings in 2016-17 which are “expected to be higher than reported in 2016, subject to global economic conditions.”
Orora shares were up 27 cents, or 9.7%, to $3.03 at the close yesterday.
