Orora warns of lower profit for 2026-27

• Orora stated that its earnings before interest and tax for the 2026-27 period are expected to decline compared to the previous financial year.
• The company share price traded lower following the announcement, reflecting ongoing market pressures in its glass division.
• Management cited persistent operational challenges in its French Saverglass business, driven by United States tariffs and disruptions from the Middle East conflict.

Packaging manufacturer Orora (ASX:ORA) issued a profit warning stating that earnings before interest and tax for the 2026-27 financial year are expected to fall below the prior corresponding period.

The updated outlook contrasts with previous trading periods as persistent operational headwinds continue to affect the French Saverglass business.

“Tough conditions for the French Saverglass business had continued into the first few months of the new financial year because of disruptions from the Middle East conflict and the impact from United States tariffs,” said Orora CEO Brian Lowe.

The company noted that these ongoing geopolitical and trade pressures have slowed down market recovery timelines following its multi-billion-dollar acquisition.

Orora anticipates that these headwinds will continue to weigh on group financial results as market demand remains constrained.

Following the announcement, the Orora share price was down at $1.35.

The group originally acquired the French bottle maker Saverglass for $2.2 billion in 2023, though the purchase has since faced valuation write-downs and a significant decline in market valuation.