Full Year 2026 ORORA LIMITED Earnings Call Transcript
Key Points
- Cans delivered strong performance with 6.3% volume growth, driven by substrate shift and new category growth.
- Strong balance sheet and cash generation, with cash realization of 98.3% and leverage at 1.2x EBITDA.
- Completion of Cans growth capacity investments, including Rocklea, expected to support ~5% annual volume growth until 2030.
- Saverglass achieved 6% volume growth and market share gains, with inventory levels down 13%.
- Gawler improved EBITDA by 10% and EBIT by 11% due to efficiency gains from two-furnace operation.
- Recommencement of on-market share buyback and final dividend declared, supporting shareholder returns.
- Debt facilities extended and streamlined, with no refinancing of drawn debt until FY33.
- Saverglass executing six priorities targeting >EUR30 million net EBIT improvement by FY30.
- RAK facility planned to recommence production in October, improving customer service.
- Sustainability progress: 65% recycled content in colored glass, 29% reduction in Scope 1 and 2 emissions.
- Saverglass earnings impacted by price and mix, with 5% negative price/mix impact and EBITDA down 9.3%.
- Non-cash impairment of glass CGU of EUR450 million due to US tariffs, Middle East conflict, and cost-of-living pressures.
- FY27 EBIT expected to be lower than FY26, driven by higher D&A and lower Saverglass EBIT.
- Ongoing price and mix pressures expected to persist into first half of FY27, with no clear visibility on second half.
- RAK facility idling costs of ~EUR2 million per month until production restarts, with limited shipping capacity.
- Cans volume growth slowed to 1.7% in second half, with higher interstate transport costs.
- Gawler volumes down 2.1% due to continued beer decline and challenging wine demand.
- Net finance costs expected to increase to AUD63-68 million in FY27.
- Tax rate expected to rise to 26.5%-27.5% in FY27.
- Safety metrics worsened: recordable case frequency rate increased to 10.5 and lost time incident frequency rate to 5.7.
Thank you for standing by and welcome to the ORORA LIMITED FY26 full-year results call. (Operator Instructions)
I would now like to hand the conference over to Mr. Brian Lowe, Managing Director and Chief Executive Officer. Please go ahead.
Good morning, everyone. Thank you for joining us today for ORORA's full-year 2026 financial results presentation. I'm joined by Shaun Hughes, our Chief Financial Officer. Shaun and I will take you through ORORA's financial performance for the year end of June 30, 2026, take you through the operational progress across the portfolio, and the actions we are taking as ORORA continues to operate as a focused beverage packaging business.
I will start with the key results messages, operational progress, safety, and sustainability. Shaun will then cover the financial results in more detail, including the impairment of the glass CGU, cash flow, CapEx, balance sheet, and shareholder returns. I will then return to cover our
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