Orora Group (ORA) H1 2025 earnings summary

Executive summary

• Completed sale of OPS for AUD 1.8 billion and Closures for AUD 20 million, simplifying the portfolio to focus on global beverage packaging and strengthening the balance sheet.

• Significant growth in Global Glass earnings from the Saverglass acquisition, with a full six-month contribution in 1H25.

• Announced a share buyback of up to 10% of issued capital (~AUD 320 million) and interim dividend of 5.0 cps, 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.

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

Financial highlights

• Underlying EBIT rose 24.6% to AUD 120.8 million, driven by Saverglass; underlying NPAT up 1.2% to AUD 58.8 million; underlying EPS at 4.4 cps, down 12% due to share dilution.

• Group revenue increased 65% to over AUD 1 billion, mainly from Saverglass; Cans revenue up 5.2%, Global Glass revenue up 143.1%.

• 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.

• Interim dividend of 5.0 cps declared, payout ratio 114% for the half, above target due to discontinued operations.

• Net debt reduced to $155.5 million, leverage at 0.28x EBITDA, well below target range.

Outlook and guidance

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

• Gawler’s G3 furnace fully operational; no further rebuild impact expected; site to transition from three to two furnaces in 2025.

• Saverglass order intake shows early signs of recovery, but European demand outlook remains uncertain; potential US tariffs on Mexican production.

• Cans business volume growth expected to improve in 2H FY25, with focus on new capacity additions.

• Outlook subject to economic conditions, currency, and regulatory risks.