Orora Limited has provided a trading update for FY26, reflecting the impacts of the Middle East conflict on its Saverglass operations. The company anticipates a reduction in Saverglass's underlying EBIT to €63m-€68m and reported EBIT to €52m-€59m due to both direct and indirect effects of the conflict. Direct impacts include operational disruptions at the Ras al Khaimah facility, leading to a 2H26 EBIT impact. Indirect impacts involve lower volumes and a negative product mix shift. While no changes are expected for Cans or Gawler, the Ras al Khaimah facility has shifted to a closed-loop operation, with production moving to Mexico. Orora maintains a strong balance sheet with leverage expected to remain low.
Key Points
Orora updated its FY26 EBIT forecast for Saverglass due to the Middle East conflict.
FY26 underlying EBIT for Saverglass is now expected to be €63m to €68m.
FY26 reported EBIT for Saverglass is expected to be €52m-€59m.
Direct impact from the conflict affected the Ras al Khaimah facility with a 2H26 EBIT impact of €9m-€11m.
Indirect impacts include lower volumes and a negative mix shift leading to a 2H26 EBIT impact of €11m-€16m.
No change to guidance for Cans or Gawler for FY26.
The Ras al Khaimah facility shifted to a closed-loop ‘hot’ operation due to disrupted shipping routes.
Production shifted to Mexico in response to the conflict.
EBIT impact from transitioning the RAK facility is estimated at €9m-€11m.
Higher Saverglass-owned inventory due to softer customer offtake post-conflict.
Orora's balance sheet remains strong with leverage forecast to remain below 1.5x by June 2026.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.