Despite subdued economic conditions, Orora’s Australasian business has seen higher pre-tax earnings, thanks in part to favourable growing seasons in some fruit and produce markets in Australia and New Zealand, and higher sales to the grocery sector in Australia.
Orora also sold more glass bottles as it gained a greater share of the beer market and improved volumes in the wine sector.
The glass business experienced increased demand from the wine sector in the wake of the lower Australian dollar.
The Australasian business also benefited from cost cuts and operational improvements at the B9 recycled paper mill at Botany in NSW.
Orora shares surged more than 10 per cent after the packaging company lifted full-year profit by 28.3 per cent and predicted increased earnings for the year ahead.
Net profit for the 12 months to June 30 was to $168.6 million, up from $131.4 million a year earlier, boosted by organic growth, acquisitions in North America and the sale of land at Petrie in Queensland.
Orora’s North American operations benefited from favourable currency fluctuations and the recent acquisitions of Jakait, a supplier of packaging to the greenhouse produce sector, and IntegraColor, a Texas-based provider of point-of-purchase retail displays.
Orora CEO Nigel Garrard said the year ahead looked positive.
“It is expected the group will continue to drive organic growth and invest in innovation and growth during FY17, with earnings expected to be higher than reported in FY16, subject to global economic conditions” Garrard said.
