Orora Group (ORA) H2 2024 earnings summary

Executive summary

• Revenue rose 9.5% to $4,697.6m, driven by the Saverglass acquisition, which contributed seven months of earnings and included €427.6m revenue and €48.8m EBIT.

• Underlying EBIT increased 26.0% to $404.0m; underlying NPAT up 10.2% to $223.7m, with strong cash generation and cash conversion of 80.5%.

• Leverage increased to 2.78x due to acquisition debt; net debt at $1,753.5m, with $865.1m liquidity and a final dividend of 5.0 cps declared.

• Strategic review underway for potential OPS divestment; opportunistic takeover offer rejected.

• Saverglass utilization rates remain around 60%, with inventory reduction ongoing and targeted synergies of AUD 15 million on track.

Financial highlights

• Underlying NPAT rose 10.2% to $223.7m; statutory NPAT was flat at $185.2m.

• Underlying EPS declined 19.4% to 17.9 cps due to equity raising dilution.

• Free cash flow available to shareholders increased to $56.3m, up from $13.3m.

• Capex of $256m in FY24, supporting growth and sustainability initiatives.

• Dividend payout ratio at 60.5%, at the low end of the 60–80% target range.

Outlook and guidance

• FY25 EBIT for OPS expected in line with 2HFY24 exit run-rate; positioned for US economic recovery.

• Global Beverage (Australasia) EBIT to be slightly lower, with Cans growth offset by G3 furnace rebuild impact.

• Saverglass to deliver higher full-year EBIT with volume recovery expected from early CY25.

• FY25 capex guidance of $240m–$260m; net finance costs $130m–$135m; dividend payout target 60–80% of NPAT.

• Net debt and gearing expected to hold steady through FY25, with deleveraging anticipated from FY26 as earnings recover post-G3 furnace rebuild.