• Portfolio simplified, with clear focus on global beverage packaging
• Underlying EBIT up 24.6%, driven by Saverglass contribution
• Capacity review and furnace closures to improve efficiency and lower costs

Orora has completed the sale of its OPS and Closures businesses, strengthening its balance sheet and enabling a focus on global beverage packaging through its Glass and Cans offerings. The company reported underlying EBIT of $120.8 million, up 24.6%, driven by the inclusion of six months of Saverglass earnings compared to one month in the prior comparative period. Excluding Saverglass, EBIT was $58.4 million, representing a decrease of 30.1%, largely due to the impact of a G3 furnace shutdown at Gawler, which was hampered by bad weather and equipment delays, reducing EBIT by $24 million. Orora has undertaken a review of glass production capacity in Australia, which will result in the Gawler site transitioning from three furnaces to two, and the closure of the G1 furnace in the second half of 2025. Some production volumes will be redirected to the UAE site to meet customer demand. Orora also plans to invest in the modernisation of the Ghlin manufacturing site in Belgium, where all European wine and champagne bottles will be produced. The company's Australasian Cans business performed strongly, delivering EBIT and revenue increases of more than 5%, despite modest volume growth.

Orora expects group EBIT for the second half of FY25 to be broadly in line with the second half of FY24 (continuing operations), with each business improving compared to the first half of FY25. For Gawler, the G3 furnace is fully operational, and there will be no further impact from the rebuild. Volumes are seasonally lower in the second half compared to the first, with the structural challenges of commercial wine to remain. For Saverglass, the pace of recovery in European demand remains uncertain, but some improvement in order intake indicates better second-half volumes. For the Cans business, Orora expects an improved growth rate in second-half volumes compared to the prior year.

Orora is focused on organic growth opportunities, particularly through capacity expansion of the Cans business and leveraging its Global Glass network to cater for all segments of the beverage industry. The company continues its program of capacity expansion across the Cans network, with a second line at Revesby NSW commissioned late in 2024 and preliminary works underway on a new line at Rocklea, Queensland.