Packaging company Orora is optimistic about its profit prospects for the current fiscal year, despite an uncertain economic outlook in key markets. In Australia, where inflation continues to rise and consumers are tightening their budgets due to increased interest rates, Orora remains confident in its ability to maintain profitability.
For the 12 months ending in June, Orora reported a statutory net profit of AUD 184.8 million, a slight decrease of 1.2% compared to the previous year. However, underlying profit before significant items increased by 8.5% to AUD 203.0 million, excluding the impact of currency fluctuations.
To reward shareholders, directors declared a final dividend of 9.0 Australian cents per share, exceeding the previous year's payout of 8.5 cents. Despite the challenges faced during the COVID-19 pandemic in 2020, Orora has consistently increased its annual dividend.
Orora has experienced a boost in sales of beverage cans due to changing consumer preferences and concerns surrounding the environmental impact of plastic packaging, particularly for soft drinks. The company's largest customer, Coca-Cola Europacific Partners, has recently launched a canning line in Moorabbin, Australia, which utilizes Orora's products.
"Despite ongoing global economic uncertainties, we expect higher earnings for the Group in FY 2024, reflecting the continuing resilience of our business," said Rob Sindel, Orora's chairman.