Packaging company Orora increased annual net profit by 25.9% despite ‘subdued’ conditions in major markets including North America and Australasia.
The company, which was spun off from packaging giant Amcor in December 2013, reported a net profit of $131.4 million, up from last year's $104.4 million. Earnings before interest and tax rose 17 per cent to $225.1 million.
"Operationally the Group delivered strong earnings before interest and tax growth of approximately 17% despite subdued market conditions in both Australasia and North America," said chief executive Nigel Garrard. "This was driven primarily by benefits from business improvement programs, which are slightly ahead of target, and increased market share in the glass and North American businesses."
“Orora’s customer focus and innovation will continue to underpin future growth,” said Gerrard, who added that 2015/16 earnings were expected to be higher. “Orora continues to actively pursue acquisition opportunities in preferred markets to enhance geographic footprint, extend the value proposition and achieve greater economies of scale.”
The company declared a final dividend of 4 cents a share, bringing the total payout for the year to 7.5 cents a share.
Orora also announced it’s signed a $17 million deal to acquire Jakait, a Canadian-based supplier of packaging, logistics services and label products to the greenhouse produce sector.
Melbourne-based Orora employs about 5,500 people in 39 manufacturing plants and 83 distribution sites across seven countries, producing packaging products ranging from corrugated boxes and folding cartons to glass bottles and jars.