Orora（ORA .AU）UBS SnapShot： FY24 EBIT better than feared

Investment Rating - The report assigns a 12-month rating of Neutral to Orora, with a price target of A$2.16 [2][16]. Core Insights - FY24 results exceeded expectations, supporting a re-basing of FY25 consensus estimates. Revenue increased by 9% to A$4.7 billion, and EBIT rose by 26% to A$404 million [2][3]. - The company is undergoing a strategic review and is in discussions to potentially divest its North American Packaging Solutions (OPS) business [2][3]. Summary by Sections Financial Performance - FY24 revenue increased by 9% to A$4.7 billion, EBIT up by 26% to A$404 million, and net profit after tax (UNPAT) rose by 10% to A$224 million [2][3]. - Australasia Beverage EBIT grew by 2% to A$156 million, driven by a 2.5% increase in cans volume [2][3]. - North America EBIT remained flat at A$167 million, with OPS revenue down 11% in USD terms due to price deflation and lower volumes [2][3]. Outlook and Guidance - Orora did not provide formal Group earnings guidance but expects OPS EBIT to align with the 2HFY24 exit run-rate due to transformation benefits and cost management [2][3]. - Australasia EBIT is anticipated to be slightly lower in FY25, with growth in cans offset by the impact of furnace reline [2][3]. Valuation Metrics - Key financial metrics include a forecasted revenue growth to A$5.011 billion in FY25 and an EBIT margin of 7.9% [2][3]. - The report indicates a forecast dividend yield of 4.1% and a forecast stock return of -0.8% [4].