First Impression: Orora-ORA- FY16 Result

Segment EBIT: Australasia up 10.4% to $200.4m, EBIT margin up from 9.4% in FY15 to 10.2% in FY16 (Fibre earnings were higher than pcp driven by cost reduction and innovation benefits from the B9 Recycled Paper Mill (“B9”) and improved volumes in Fibre Packaging). Beverage earnings increased driven by increased sales volumes and improved operating efficiency. North America up 20.2% to US$72m ( or 38.1% to $98.9m in AUD terms), EBIT margin up from 4.9% in FY15 to 5.2% in FY1 6 (Orora Packaging Solutions delivered improved EBIT through continuing to deliver on its organic sales growth strategy). B9 delivered incremental cost reduction and innovation benefits of $18.4m over pcp, taking the cumulative benefits delivered to $21.4m which was slightly ahead of guidance. The program remains on track.