Real success in US for Orora

Package manufacturing and distribution business, Orora (ASX:ORA), added to Ralton's Australian Shares portfolio during August with shareholders benefiting from a clean set of profit figures and a well-received strategy. Since demerging from Amcor, ORA's management has delivered on promised synergies for the Australian pulp mill and demonstrated an ability to expand ORA's footprints in low-growth markets. With Australian operations under control, ORA's real success has been in the US. The corrugated paper and packaging products division has achieved strong profit growth, aided by strong market share gains, geographical expansions, a boost in operating margins and targeted acquisitions. The US division has further expanded with the acquisition of IntegraColor, a specialist package producer. IntegraColor's focus is the design and supply of pop-up packaging (POP) products - the type seen at the bookend of supermarket aisles displaying products on promotion. ORA intends to expand further in the US$10bn POP North American market. With a well-capitalised balance sheet, we expect ORA has scope to consolidate what is currently a large unconsolidated market, often dominated by local players and no real national leader. (VIEW LINK)