Orora says earnings from French bottle manufacturer Saverglass will be lower than expected this year at the same time as it flags softer growth in its core packaging business.
Orora blamed a move from customer to lower their inventories for the lower Saverglass earnings. The 126-year-old French business has a 33 per cent share of the market for high-end spirit bottles, and counts Grey Goose, Glenfiddich and Hennessy as customers.Shares fell in early trade on Tuesday, down 13.6 per cent, or 37¢, to $2.35. The company has lost more than a quarter of its value in the last 12 months, and now has a market capitalisation of around $3.2 billion.
European markets for the bottles made by Saverglass were particularly subdued, although there were some signs of improved demand in North America.