Orora Limited (ASX:ORA) Reports Significant Revenue Growth and Announces Dividends
Financial Performance
Orora Limited (ASX:ORA) reported a substantial increase in revenue, rising by 64.8% to A$1,028.3 million for the half-year ended December 31, 2024, compared to A$624.2 million in the previous period. Net profit surged to A$907.6 million, up from A$68.2 million, driven primarily by gains from discontinued operations. Earnings from continuing operations showed a slight increase to A$58.8 million, while discontinued operations contributed a significant A$848.9 million from the sale of its North America packaging solutions business.
Divestment Updates
In a strategic move, Orora completed the sale of its North America packaging solutions business to Veritiv Corporation for an enterprise value of A$1,792.5 million. Additionally, the company entered an agreement to sell its aluminium closures operations in Adelaide, South Australia. These divestments have strengthened Orora’s financial position and reduced its borrowing commitments.
Share Buy-back Program
Orora announced an on-market share buy-back program of up to 10% of its total issued share capital, approximately 134.3 million shares. During the period, the company purchased 183,946 ordinary shares for a total value of A$0.5 million.
Dividend Declaration
The Directors declared an interim dividend of 5.0 cents per share, totaling approximately A$67.2 million, to be paid on April 3, 2025. This dividend is unfranked, with about 25% sourced from the Conduit Foreign Income Account.
Debt Repayment
Following the divestment of its OPS business, Orora repaid and cancelled several borrowings, including US$143.0 million in Private Placement Notes and US$100.0 million in a Bilateral Term Facility. The total value of committed facilities was reduced from A$2,601.6 million to A$2,217.8 million as of December 31, 2024.
Motley Fool contributor Abbie Stokes 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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