Packaging group Orora has recorded a 27 per cent jump in its half year net profit despite what it describes as ‘muted economic conditions’ across Australasia and North America.
Packaging group Orora has recorded a 27 per cent jump in its half year net profit despite what it describes as ‘muted economic conditions’ across Australasia and North America.
CEO Nigel Garrard said the company – spun off from Amcor in 2013 – recorded a net profit of $87.9 million in the six months to December 31, up 27.2 per cent on a year earlier. Overall revenue climbed 13.9 per cent to $1.9 billion.
"Operationally the group delivered underlying EBIT growth of 15.6% despite muted economic conditions in both Australasia and North America. This was driven primarily by benefits from group-wide business improvement and cost control programs, North American organic sales growth and the September 2015 acquisition in Ontario, Canada,” he said.
“In the six months since launching the $45 million Innovation Initiative as reported in the FY 15 results announced last August, approximately $12 million has been committed to projects across the group focused on delivering new innovative customer-led product solutions, modernising equipment, improving processes and productivity."
Garrard warned that higher gas prices, especially in South Australia, showed no signs of easing. “It is going to be something we are going to see for some time. It means the investment opportunity for energy reduction and energy mitigation becomes more attractive given the high prices. I don't see any medium term reduction in this pressure. It is a new fact of life we are going to have to deal with.”
The company will pay a dividend of 4.5 cents a share on April 6.