No New Negatives from Orora 'a Relief'

Dow Jones
08/13

0103 GMT - No new negatives from drinks container company Orora is a relief for Citi. Annual EBIT of A$248 million was broadly similar to consensus hopes for A$249 million, with growth in cans offsetting headwinds in glass bottles. "We estimate the resumption of buyback, restart timing of RAK and glass initiatives could be taken as incremental positives," says analyst Samuel Seow. RAK is Orora's Ras al Khaimah facility in the United Arab Emirates, which produces premium and ultrapremium wine bottles. The facility has been running as a closed-loop "hot" operation since the Middle East conflict closed shipping routes. It involves keeping the furnace warm but producing no bottles. Orora has begun efforts to restart RAK on a restricted-volume basis from October, using alternative shipping routes in Oman.

 

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