Orora has announced its financial results for the half-year which ended on 31 December 2021.

Commenting on Orora’s half-year results, managing director and chief executive officer, Brian Lowe said: “I am pleased to report that Orora delivered a strong result for the first half of the fiscal year 2022. Our performance reflects the unwavering focus of our team on executing our strategic priorities in the context of a global pandemic.

“The Group reported an increase in underlying net profit after tax and underlying EBIT on the prior corresponding period, demonstrating the continued strength of the Group’s diversified packaging assets and sustainable earnings.

“Our North American business produced another outstanding result in the first half, continuing to drive improvements in operating and financial performance, exercising pricing discipline in a higher inflation operating environment and delivering strong earnings growth in both the manufacturing and distribution OPS businesses.

“And we are pleased with the Australasian business which reported a solid result, having largely mitigated the impacts of lower wine Glass volumes as the impact of Chinese tariffs on Wine were cycled, with 100% of this capacity now redeployed to new product categories. Cans demand remains strong, with solid volumes achieved across all categories.

“Underpinning our results is the ongoing commitment to the Group’s corporate strategy, with clear strategic priorities formulated for each business unit. A strong balance sheet and operating cash flow ensures Orora is well positioned for growth, and continues to provide operating and strategic flexibility as we move forward. Our team remains disciplined and focused on delivering against our strategies, and I look forward to continuing our positive momentum in FY22.”

A summary of the announcement included:

Sustainability Update

The company is also well on track to achieving a 40% reduction in greenhouse gas emissions for Scope 1 and 2 by 2035 through a range of initiatives which include alternative furnace technologies.

Capital Management Update

In October 2021, Orora announced an $150M on-market buyback. As at 31 December 2021, the buyback is 20% complete, with 9.3 million shares bought back at an average price of $3.37, for total consideration of $31.5M. The buyback is forecast to be completed during 2022.

Outlook

• Underlying earnings per share (EPS)1 was 11.8 cents per share (cps), up 22.9%.

• Underlying net profit after tax (NPAT) before significant items was $102.7M, up 12.9% on the prior correspondingperiod (pcp)

• Sales revenue was $1,988.6M, up 9.6% on preceding period.

• Underlying Earnings Before Interest and Tax (EBIT) was $154.5M, up 10.4% on the pcp.

• Operating cash flow remains strong at $145.5M with cash conversion at 75%.

• Return on average funds employed (RoAFE), 2 was 24.8%, up from 21.4% at the pcp, reflecting higher Group earnings.