Orora Group (ORA) H1 2025 earnings summary

Executive summary

• Portfolio simplified with the sale of OPS for AUD 1.8 billion and Closures business for AUD 20 million, focusing on global beverage packaging and strengthening the balance sheet.

• Statutory profit after tax for the half year ended 31 December 2024 was $907.6 million, up from $68.2 million year-over-year, driven by the OPS sale and strong segment performance.

• Significant growth in Global Glass earnings from Saverglass acquisition, with six months' contribution in 1H25.

• Announced a share buy-back of up to 10% of issued capital (~AUD 320 million) and interim dividend of 5.0 cents per share, with payout ratio above target due to discontinued OPS earnings.

• Major capex projects include G3 furnace rebuild, Revesby and Rocklea Cans expansions, and Ghlin plant modernisation.

Financial highlights

• Underlying EBIT from continuing operations rose 24.6% to AUD 120.8 million, mainly due to the full-period contribution from Saverglass.

• Underlying NPAT up 1.2% to AUD 58.8 million; underlying EPS at 4.4 cps, down 12% due to higher share count.

• Group revenue increased 65% to over AUD 1 billion, driven by Saverglass; Cans revenue up 5.2%, Gawler flat.

• Operating cash flow at AUD 125.7 million, cash conversion 92.3%; net cash inflow from investing activities was $1,614.0 million, mainly from the OPS sale.

• Statutory NPAT of $907.6 million includes $848.9 million gain on OPS sale and $83.7 million Gawler impairment.

Outlook and guidance

• Group EBIT expected broadly in line with 2H FY24, with each business improving over 1H FY25; FY25 capex guidance of $340m–$360m.

• Gawler: G3 fully operational, no further rebuild impact; transition to two furnaces in 2025, with some production redirected to the UAE.

• Saverglass: Order book strengthening, but European demand recovery pace uncertain; potential US tariffs on Mexican production (7% of Saverglass revenue at risk).

• Cans: Lower seasonal volumes expected, but improved growth rate; focus on new capacity additions.

• Outlook subject to economic conditions, currency, and potential US tariffs.