Shares in packaging company Orora Ltd (ASX:ORA) dived 4% in early morning trade to land at $3.44 off the back of its FY18 results release.
Orora announced a lift in underlying NPAT of 12% on FY17 – to $208.6 million with EPS up 11.5% to 17.4c per share.
Sales revenue has risen 5.2% and EBIT 7% with Orora reducing its net debt from $674 million to $667 million.
But the results have failed to impress the market, with Orora shares slipping, despite booking a strong result in the midst of flat trading conditions.
With a strong balance sheet as a foundation, Orora is focused on two separate power purchase agreements with renewable energy providers going forward. The deals are for long-term supply of renewable energy for volumes equivalent to 80% of Orora's total electricity requirements in Australia.
It's a smart move into renewables, following AGL Energy Ltd's (ASX: AGL) lead with Cleanaway Waste Management Ltd (ASX: CWY).
