11/10/2023 09:13

Orora (ORA) $2.78

Important to any acquisition in earnings accretion, or in other words, will the purchase increase the acquirer’s earnings per share (eps) given there are now more shares on issue. In the case of Saverglass, it is expected that it will, but not until FY25, the first full year of ownership.  We also consider the market, and how the issue of new shares will impact on-market demand. Investors have just been able to ‘fill their boots’ in ORA stock at $2.70, and the benefits of the acquisition are some way off.

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07/09/2023 09:05

Orora Ltd (ORA) $2.88

ORA plunged -12.4% on Wednesday, the most since June 2020, after the packaging business raised $1.2bn to purchase bottle maker Saverglass with new shares issued at $2.70, a whopping 21.3% discount to its last trade adjusted for the final 9c dividend.

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30/08/2023 09:12

Orora Ltd (ORA) $3.52

ORA has been in a trading halt as the market digests its move to acquire high-end French glass bottle manufacturer Saverglass, a company that can trace its roots back to the 15th century. Apparently, ORA are in “late-stage negotiations” as they look to get a foothold in the premium, super-premium and prestige spirit markets e.g. they produce glass for Grey Goose vodka and Glenfiddich. At this stage, we understand that Citi and Macquarie will be on the ticket to raise $1bn-plus to bankroll the deal. ORA flagged their interest in expanding through acquisitions in North America and Europe earlier in August when it handed down its FY23 numbers, clearly, they weren’t exaggerating!

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08/06/2023 09:26

Orora Ltd (ORA) $3.19

Global packaging business ORA provides fibre/can/glass packaging and logistics solutions to the beverage markets operating primarily in Australia, New Zealand and North America – Amcor’s downgrade in early May has weighed on ORA even though its performance is superior. The company delivered a stronger-than-expected earnings report in Q1 after a huge shift by consumers to “slim and sleek” cans, preferred by the younger generation for their energy drinks.

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04/05/2023 09:26

Orora Ltd (ORA) $3.35

ORA is a global packaging company providing fibre/can/glass packaging and logistics solutions to the retail, industrial, food and beverage markets. The company operates primarily in Australia, New Zealand and North America – arguably not an exciting place to operate following Amcor’s (AMC) downgrade yesterday which saw its stock tumble -9.5%.

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16/03/2023 09:10

Orora Ltd (ORA) $3.34

Packaging business ORA delivered an stronger than expected earnings report last month after a huge shift by consumers to “slim and sleek” cans, much preferred by the millennials and Gen Z market who as we know like a canned drink! The company appears to be both delivering earnings while being ahead of the curve towards R&D, in our opinion an excellent defensive play through 2023/4.

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17/02/2023 09:17

Orora Ltd (ORA) $3.33

Packaging business ORA jumped +14.8% yesterday, only a week after we flagged it as a potential candidate for our Income Portfolio, after a huge shift by the consumers to “slim and sleek” cans, much preferred by the millennials and Gen Z market who like a canned drink!

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01/02/2023 09:52

Orora (ORA) $2.98

As we’ve mentioned multiple times in recent reports, we think there is an opportunity for depressed stocks that have lagged the recent rally to play some performance catchup if their results are simply ‘not too bad’ during this upcoming reporting season. One company that has struggled over recent years is the packaging business, Orora (ORA), trading down from a $4 high in April this year to just below $3 now. Back in 2019, they generated earnings of $221.5m and were priced on a multiple of 19x those earnings. As you can imagine, 2020 was a tough year and they’ve been recovering incrementally since then, producing $187m profit in FY22 and are tipped to do $190m in FY23.

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15/12/2022 09:37

Orora Ltd (ORA) $3.00

Packaging business ORA has fallen -14% year-to-date and it now looks reasonable value trading on an Est P/E of 13.5x for 2023 plus its 6.2% projected unfranked yield is a useful top-up for performance. The company is growing in North America and sustainability trends are aiding demand for ORA’s cans and fibre packaging solutions, while it stays ahead of the curve in this department things look solid for ORA.

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05/07/2022 09:24

Orora Ltd (ORA) $3.70

Packaging business ORA has slowly but surely appreciated since COVID, a very comfortable journey compared to many stocks & sectors in 2022. We believe ORA is reasonable value trading on an Est P/E of 17.7x for 2022 while its 4.2% unfranked yield is a useful top-up for performance. The company is growing in North America while inflation has been navigated by timely price increases i.e. the business...

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