Orora lifts first half profit

Packaging manufacturer Orora has posted a net profit after tax of $69.1 million for the six months to December, an increase of 23 per cent.

Packaging manufacturer Orora has posted a net profit after tax of $69.1 million for the six months to December, an increase of 23 per cent.

In addition, sales revenue for the group was up 3.4 per cent to $1.7 billion and earnings per share was up 23 per cent to 5.7 cents.

The company, which demerged from parent company Amcor in December 2013, is expecting to lift financial earnings this financial year.

As the SMH points out, the result was significantly better than that of Amcor, whose net profit  for the period rose by just 6.7 per cent.

“Operationally we have delivered strong EBIT growth of approximately 15 per cent by increasing sales revenue, driving manufacturing efficiencies and continuing to successfully deliver on our business improvement programs in relatively subdued market conditions,” said Orora’s Managing Director and CEO, Nigel Garrard in a statement.

He said that the group is looking to North America for possible mergers and acquisitions, particularly in in food, pharmaceutical, health and automotive packaging.

"We have identified these markets as areas with above average growth rates we believe will be stronger for longer and where we feel we have an M & A advantrage," Garrard told analysts.

He also pointed to plans here in Australia.

“There are several key projects underway which are all on target, including; the rebuild of our first glass furnace at Gawler in South Australia at a cost of approximately $30 million, the transition to a full import aluminium sourcing model for beverage cans in Australasia, ONA’s development of the new enterprise resource planning system and the integration of its acquisition completed in July last year,” he said.

According to Gerrad, the group is expecting earnings for 2015 to be higher than those reported on a pro forma basis in 2014, subject to global economic conditions.

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