Orora plans to innovate as profit rises

Packaging manufacturer Orora delivered a net profit of $131.4 million for the year to June 30, a 25.9 per cent increase from the previous year.

According to the SMH, the company plans to invest $45m to encourage innovation and counter slow growth in the US economy.

“Operationally the Group delivered strong EBIT growth of approximately 17% despite subdued market conditions in both Australasia and North America. 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 CEO Nigel Garrard commented.

“Through continued financial discipline, Orora has successfully converted this earnings growth to underlying cash flow, which further strengthened the balance sheet, lowered debt servicing costs and enabled the Group to deliver approximately a 26% increase in NPAT and EPS.

“A final ordinary dividend of 4.0 cents per share, partially franked to 30%, has been declared. Combined with the interim unfranked dividend of 3.5 cents per share, total declared dividends increased to 7.5 cents, an increase of 25% over the prior year.

“This represents a payout ratio of approximately 69% of NPAT, which is again at the top end of the indicated range, reflecting the confidence the Board and Management has in the business.”