Orora’s chairman, Rob Sindel, has acknowledged that the Saverglass business in France, acquired in 2023, has not met the company’s initial expectations. Speaking at the annual meeting, Sindel told shareholders that demand has been softer than forecast, impacting the subsidiary’s performance. Orora undertook the acquisition as part of a broader strategic reshaping of the company. Orora is a global packaging company that manufactures a range of beverage, glass, and fibre packaging products. The company aims to be a leader in sustainable packaging solutions.
According to Chief Executive Brian Lowe, the Saverglass trading performance in the September quarter was in line with the same period last year. However, sales were skewed toward wine and champagne at lower price points, impacting overall profitability. Sindel expressed confidence that cost-cutting measures and restructuring initiatives will enable a long-term turnaround for Saverglass.
The strategic rationale behind the 2023 acquisition was to gain a stronger foothold in the premium end of the market, catering to large customers such as spirits makers Grey Goose, Glenfiddich, and Hennessy. However, the integration and performance of Saverglass have presented challenges for Orora.
Orora shares are currently trading around $2.06, a notable decrease from the $2.70 price during an equity raising that was part of the Saverglass deal. The company is focused on implementing its turnaround plan for Saverglass to improve its financial contribution.
