Orora's Cans Business Outperforms Glass

Orora has two distinct segments: cans and glass bottles in Australia, and Saverglass, its global premium and ultrapremium glass bottle segment. In the Australian business sales are mostly to its three main customers, Coca-Cola, Asahi, and Suntory. However, its enhanced focus on premiumization supports profit margins with additional sales to craft breweries and niche beverages such as kombucha and other small brands. We expect this to complement the firm’s existing contracts providing greater capacity utilization at its existing plants. Niche customers require a higher degree of customization, such as in multi color can printing, leading to higher margins for these sales.