EPS reflects dilution of shares. Check EBIT margin excl...

EPS reflects dilution of shares. Check EBIT margin excl Saverglass, they are higher (8.4% vs 7.3% in 1H23) .

Also, these results only include 1 month of Saverglass' revenue. FY24 results will factor in a further 6 months, that is a further $687 Million AUD of revenue. Saverglass' EBIT margin is about 13.5%, lets be conservative and take 10%, that is an EBIT of $68.7 M.

Orora expects its EBIT to be higher in FY24 vs FY23 ($320.5 M), but lets assume it to be the same. In total, that is an EBIT of $389.2 M, or @ 60% conversion rate (average conversion calculated using previous NPAT/EBIT results), $233.5 Million NPAT. This is a 15% increase YoY in a tough macro environment. Pretty good imo.

Synergies of ~$15M (EBITDA) to be realized in first full year of ownership, we could expect a small portion to be realized in FY24.

Even by conservative estimates, it seems to be doing well. Yes, it might have been a slightly expensive acquisition, but Saverglass is a major player in the European market. We are now operating in three major continents that collectively have the entirety of HNWI concentration on the planet:


Amazing acquisition in a tough macro. It is sure to bear fruit post FY25.