Orora (ASX:ORA) Announces Strong FY25 Results with 425% NPAT Growth
Financial Performance
Orora reported statutory net profit after tax (NPAT) of $973.1 million, up 425.4%, for the year ended 30 June 2025. Revenue increased by 24.4% to $2.1 billion, driven by twelve months of contribution from Saverglass and strong growth in cans volume. Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose by 19.4% to $418.8 million, while earnings before interest and tax (EBIT) increased by 9.5% to $262.1 million. Net profit after tax stood at $151.1 million, up 18.0%, and earnings per share were 11.4 cents, an increase of 11.1%.
Strategic Transformation
Orora completed its portfolio transformation, positioning itself as a focused, market-leading beverage packaging provider. The sale of OPS was finalised in December 2024 for $1.8 billion, with proceeds used to retire debt. Additionally, Orora optimised its glass production network by resizing the Gawler facility in Australia and the Le Havre facility in France, consolidating production to the Ghlin site in Belgium.
Shareholder Returns
The Board declared a final dividend of 5.0 cents per share, resulting in a full-year dividend of 10.0 cents per share, representing a payout ratio of 86% of NPAT. Furthermore, Orora conducted an on-market share buyback, purchasing 4.6% of issued shares to date for a total of $127 million.
Cash Flow
Operating cash flow reached $333.6 million, up 46.4%, with cash realisation at 115%. The strong cash generation was driven by effective working capital management and increased operational efficiencies.
Sustainability
Orora achieved significant sustainability milestones, including 59.5% recycled content in glass bottles and 78% recycled content in aluminium cans. The group reduced Scope 1 and 2 greenhouse gas emissions by 19% and 22%, respectively, and set new targets for 2035 to further enhance its sustainability efforts.
Outlook
For FY26, Orora expects EBIT in the Cans division to be higher than FY25, supported by continued volume growth and capacity expansion. The company remains cautiously optimistic, positioning itself for future growth amidst evolving market conditions.
Executive Comments
Managing Director and Chief Executive Officer, Brian Lowe, stated:
“Orora delivered a solid result over the past financial year as we completed the strategic transformation of our portfolio, with the divestment of OPS marking the final step in our journey to become a focused beverage packaging manufacturer. This was achieved despite ongoing challenges in the global operating environment, particularly around tariff implementation and consumer demand.
“The Group reported Earnings Before Interest and Tax (EBIT) of $262.1m representing an increase of 9.5%, reflecting twelve months of ownership of the Saverglass business compared to seven months of ownership in FY24.
“With demand for cans remaining strong, we continued to invest in our cans capacity expansion program which will allow us to service expected customer demand to at least 2030. The addition of a second can line at our Revesby site in New South Wales is complete and a new can line installation at our Rocklea site in Queensland is underway. The Cans business reported EBIT of $103.8m, up 0.2% which includes a $2.1m bad debt and an additional $5m of corporate overheads following the sale of OPS. If we exclude these two items, EBIT increased 7.0%.
“In response to reduced demand across the global glass packaging industry, we took decisive action to review the production capacity of our glass business and adjust our network, with the resizing of our Gawler facility in Australia and our Le Havre facility in France. Within our Global Glass business, the Saverglass business reported EBIT of €79.2m, down 5.5% compared to the prior corresponding period on a pro-forma basis, and our Gawler glass facility reported EBIT of $25.4m, a decrease of 54% which reflects the structurally challenged commercial wine market in Australia as well as the impact of the G3 furnace rebuild. This was higher than initially expected, due to the complexity of work required and equipment and weather delays.
“We remained committed to our disciplined approach to capital management, retaining a strong balance sheet following the OPS sale. This will support ongoing shareholder returns via dividends and on-market share buybacks.
“With market-leading positions in cans, premium and luxury spirits and wine packaging, and with an efficient and well calibrated footprint, we enter FY26 with cautious optimism and are well positioned for growth.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Orora. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.
