Orora (ASX: $Orora Ltd (ORA.AU)$ ) downgraded its FY24 earni...

Orora (ASX: $Orora Ltd(ORA.AU)$ ) downgraded its FY24 earnings on 2 April which sent the stock down 14.7% to levels not seen since October 2020. The downgrade reflected several factors impacting various business segments, including a weaker-than-expected performance in the North Americas division and deteriorating industry trends.
The global packaging solutions company operates in two key regions – North America and Australasia – and recently acquired French glass bottles maker Saverglass for $2.2 billion. In the first-half of FY24, the North American generated approximately 62% of Group revenues while Australasia and Saverglass accounted for 33% and 5% respectively.
Some of the key takeaways from the trading update include:
North America: Continued to experience volume softness and flow through impacts of price deflation to customers. The decline in sales between February to march means that management do not expect to see the normal seasonal uplift in the June quarter. Revenue for the second half is forecast to fall 3% versus the first half.
Australasia: Strong performance from cans segment expected to offset the ongoing softness in customer demand in glass.
Saverglass: A weaker-than-expected February and March trading result has led to a reduction in forecast sales in the second half, down 11% year-on-year. The EBTIDA guidance for Saverglass for FY24 was reduced to 84-88 million euros (from 98 million)