{"id":12667,"date":"2026-04-09T06:07:40","date_gmt":"2026-04-09T10:07:40","guid":{"rendered":"https:\/\/www.packagingindustrynews.com\/?p=12667"},"modified":"2026-04-09T06:07:40","modified_gmt":"2026-04-09T10:07:40","slug":"orora-trims-saverglass-fy26-earnings-outlook-amid-middle-east-tensions","status":"publish","type":"post","link":"https:\/\/www.packagingindustrynews.com\/?p=12667","title":{"rendered":"Orora trims Saverglass FY26 earnings outlook amid Middle East tensions"},"content":{"rendered":"


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Orora said the lower reported result reflects both direct and indirect consequences of the conflict. Credit: Suri_Studio \/ Shutterstock.com.<\/figcaption><\/figure>\n<\/p><\/div>\n

Orora has reduced its FY26 earnings guidance for Saverglass, citing disruption linked to the Middle East conflict.<\/p>\n

The company expects FY26 underlying EBIT for Saverglass of \u20ac63m ($73.5m) to \u20ac68m, excluding direct effects from the conflict.<\/p>\n

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Earlier guidance had pointed to a result broadly in line with FY25 EBIT of \u20ac79.2m.<\/p>\n

Saverglass\u2019s reported EBIT for the year ended 30 June 2026 is now forecast at \u20ac52m to \u20ac59m.<\/p>\n

Orora said the decreased reported result reflects both direct and indirect consequences of the conflict.<\/p>\n

The direct effect relates to the Ras al Khaimah facility in the UAE, where the impact on H2 FY26 EBIT is estimated at \u20ac9m to \u20ac11m.<\/p>\n

This amount will be disclosed separately as a significant item in the FY26 annual report.<\/p>\n

Indirectly, the company said earnings have been affected by weaker-than-expected volumes and a less favourable sales mix.<\/p>\n

It cited a larger shift towards premium wine and champagne, relative to premium spirits, along with within-category mix changes that reduced average selling prices and margins.<\/p>\n

Orora expects this to reduce H2 FY26 EBIT by about \u20ac11m to \u20ac16m.<\/p>\n

There is no change to FY26 guidance for Cans or Gawler.<\/p>\n

Since the conflict began on 28 February 2026, shipping routes have shut, and overland access has been cut off.<\/p>\n

Orora has decided to place the RAK facility into a closed-loop \u201chot\u201d operation, meaning the furnace will remain warm, but bottle production will stop.<\/p>\n

The RAK furnace, which has four lines, accounts for roughly 15% of Saverglass production capacity.<\/p>\n

Most recent output from the site has been for premium and ultra-premium wine bottles sold into North America.<\/p>\n

That production will move to Mexico, with moulds to be transferred to the Acatl\u00e1n plant for output from late FY26.<\/p>\n

Orora said all team members in the region are safe and the RAK site has not been damaged.<\/p>\n

For H2 FY26, the company expects wine and champagne to account for 60% of the wine and spirits sales mix, around eight percentage points above the prior corresponding period.<\/p>\n

Saverglass\u2019s FY26 depreciation and amortisation is now expected to be \u20ac70m, around \u20ac2m lower due to delays to capital expenditure projects, including the lightweighting programme at RAK.<\/p>\n

Orora said leverage is forecast to remain below 1.5\u00d7 in June 2026. Its on-market buyback has been paused while it monitors the conflict\u2019s effects.<\/p>\n

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