Orora Limited (ASX:ORA) Releases Investor Update
Strategic Transformation
Orora Limited has transformed into a focused beverage packaging business, securing market-leading positions in cans, premium spirits, and wine packaging. The company highlights long-term market volume growth of approximately 4-6% in cans and 3-6% in premium spirits and wine packaging.
Operational Achievements
The Cans expansion projects are expected to generate over a 15% return, adding more than $50 million of additional EBIT post-completion of the Rocklea project. Orora’s glass network capacity supports volume recovery without the need for further investment until after 2030.
Financial Performance and Outlook
Orora is entering a stronger free cash flow period post FY26, supported by a disciplined approach to capital allocation. The company maintains a strong balance sheet, enabling ongoing shareholder distributions. For FY25, EBIT is expected to be slightly lower than FY24 due to the reallocation of corporate overheads.
Capital Allocation
Orora emphasizes a balanced approach to capital allocation, focusing on strong cash realization, maintaining investment grade credit metrics, and maximizing shareholder returns. The company has allocated significant capital towards acquisitions, capex, and share buybacks.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Orora. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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