Orora Limited reported a statutory profit of $58.9 million for the half-year ended December 2025, driven by operational improvements despite significant restructuring costs. The company declared an interim dividend and announced a fresh share buy-back program.
- Statutory profit from continuing operations rose to $58.9 million
- Restructuring costs of $25.5 million related to European glass operations
- Orora Cans segment delivered 11.2% volume growth and earnings increase
- Interim unfranked dividend of 5.0 cents per share declared
- Ongoing on-market share buy-back program announced for up to 10% of shares
Financial Performance Overview
Orora Limited has reported a statutory profit after tax of $58.9 million for the half-year ended 31 December 2025, a marked improvement from the $0.2 million recorded in the previous corresponding period. This turnaround comes despite the company incurring significant restructuring expenses, reflecting a disciplined approach to cost management and operational optimisation.
The company’s revenue from continuing operations increased by 9.7% to $1.13 billion, supported by growth in its aluminium cans segment and ongoing efficiency initiatives within its glass packaging business.
Segment Highlights and Restructuring Impact
The Global Glass segment saw earnings before significant items, interest and tax rise by 11.3% to $79.5 million. This improvement was achieved despite persistent pressures in the global glass and wine markets, aided by cost control measures and network optimisation. However, the segment absorbed $25.5 million in restructuring costs, primarily related to the closure of the Le Havre furnace in France and a corporate restructure aimed at streamlining operations.
Meanwhile, the Orora Cans segment posted an 11.2% volume increase and a 4.5% rise in earnings before significant items to $51.6 million. This growth was driven by expanding aluminium packaging demand, particularly in new non-alcoholic beverage categories, supported by recent capacity expansions.
Divestments and Discontinued Operations
Orora’s prior period divestments of its North American packaging solutions business and aluminium closures operation have been classified as discontinued operations. The sale of the North American business in December 2024 generated net proceeds of approximately A$1.43 billion and a significant gain, which bolstered the prior period’s earnings substantially.
Capital Management and Shareholder Returns
The company declared an interim unfranked dividend of 5.0 cents per share, payable in April 2026, fully sourced from the Conduit Foreign Income Account, ensuring no withholding tax for foreign shareholders. Additionally, Orora continued its on-market share buy-back program, purchasing 47.6 million shares for $100.7 million during the half-year. A further buy-back of up to 10% of issued capital was announced post-period, signalling management’s confidence in the company’s outlook and commitment to returning capital to shareholders.
Regulatory and Market Risks
Orora disclosed an ongoing investigation by the French Competition Authority into alleged anti-competitive practices at Saverglass, a subsidiary acquired in 2023. While the investigation relates to a period before Orora’s ownership and the company is cooperating fully, the potential financial impact remains uncertain. The company also highlighted the sensitivity of its Global Glass cash flow forecasts to market conditions, inflationary pressures, and geopolitical risks, which could influence future impairment assessments.
Bottom Line?
Orora’s operational gains and capital management efforts set a solid foundation, but ongoing restructuring and regulatory scrutiny warrant close investor attention.
Questions in the middle?
- How will the French Competition Authority investigation impact Saverglass and Orora’s financials?
- What are the expected timelines and cost implications for completing the Global Glass restructuring?
- How aggressively will Orora pursue further share buy-backs amid evolving market conditions?