Packaging company Orora posted strong growth for the year ended June 2018 with profit after tax up 12% to $208.6 million and sales revenue up 5.2% to $4.2 billion.
“Orora has continued its year-on-year track record of delivering earnings growth, strong cash generation and disciplined capital management to report double-digit profit growth, despite flat trading conditions in key markets,” said Orora MD and CEO, Nigel Garrard.
The company's recent significant investment in digital printing capability – notably two high-speed, large format EFI Nozomi digital presses for corrugated (one installed in Victoria, one in its California operation) – is going to be a game changer for the business, Garrard said.
Orora's digital printing capability on metal cans is enabling the beverage segment of the business to cater to the smaller runs and creative campaigns associated with the emerging and fast growing craft beer and artisan drinks sectors. “Artisan is a big growth area across the board in FMCG, and digital printing is key to this.” he said.
During the year, Orora invested $189 million in capital projects and innovation to drive growth, including: $30 million to boost capacity of its Australasian Fibre Packaging business; the two new EFI Nozomi printers - taking the cumulative investment under its global innovation initiative to more than $45 million; a $7 million investment in new small format can capacity at Beverage Cans (NZ); and $8 million to complete a $23 million waste water treatment plant at the Botany B9 Recycled paper mill.
Garrard says the company continues to focus on a range of sustainability initiatives.
"Orora also announced two separate power purchase agreements (PPA) with renewable energy providers to supply wind-generated electricity to Orora’s operations in South Australia, Victoria and New South Wales, where the Company operates its largest and most energy intensive plants. Under the PPAs, Orora has secured competitive long-term supply of renewable energy for volumes equivalent to 80% of Orora’s total electricity requirements in Australia.
"The PPAs, together with Orora’s $23 million investment in a waste water treatment plant at the Botany B9 Recycled Paper Mill (B9) and the company’s status as one of Australia’s leading recyclers of glass and cardboard, provide a stable and sustainable foundation for the Australasian business over the long term."