Orica Ltd
ASX:ORI

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Orica Ltd Logo
Orica Ltd
ASX:ORI
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Price: 24.9 AUD 1.26% Market Closed
Market Cap: 11.6B AUD

Orica Ltd
Investor Relations

Orica Ltd, tracing its roots back to 1874, stands as a venerable player in the mining and infrastructure sectors, with a storied history that speaks to its resilience and adaptability. Initially established as a supplier of explosives, the company has evolved through the years, expanding its purview to encompass a vast array of ground support and technical services, vital for industries operating in challenging environments. The company's prowess lies in its ability to deliver complex and highly engineered solutions that ensure efficiency and safety for its varied clientele. This expertise underscores Orica's reputation as a linchpin in the mineral extraction industry, where the precise deployment of its products and services facilitates the safe and effective recovery of valuable resources.

At the core of Orica's business model is its specialization in the manufacture and supply of commercial explosives, blasting systems, and mining chemicals, which cater predominantly to the mining, quarrying, and construction industries. The company's success hinges on its sophisticated supply chain and robust distribution network, which ensures just-in-time delivery of essential products to mining operations across the globe. Furthermore, Orica leverages its proprietary technologies and predictive analytics tools to optimize blasting processes, significantly enhancing operational efficiencies and cost savings for its clients. Through strategic innovations and unwavering commitment to safety and environmental stewardship, Orica not only drives profitability but also fortifies its market position in an industry where precision and reliability are paramount.

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Last Earnings Call
Fiscal Period
Q4 2024
Call Date
Nov 14, 2024
AI Summary
Q4 2024

Record Earnings: Orica reported its highest EBIT in a decade at $806 million, up 15%, and statutory net profit after tax surged 77% to $525 million, driven by premium product adoption and strategic acquisitions.

Strong Cash Flow: Operating cash flow remained robust at $808 million, supporting financial stability and future growth.

Dividend Increase: Total dividend for FY24 rose 9% to $0.47 per share, reflecting ongoing commitment to shareholder returns.

Sustainability Progress: Orica achieved a 43% reduction in Scope 1 and 2 emissions versus the 2019 baseline, surpassing its 2026 targets ahead of schedule.

Strategic Acquisitions: Integration of Terra Insights and Cyanco contributed to segment growth, with full year earnings impact expected in FY25.

Positive Outlook: Management expects continued EBIT growth across all segments in FY25, with capital expenditure (excluding acquisitions) projected to be lower year-on-year.

Capital Framework Review: Orica is reviewing its capital allocation policies, with potential for updates, including buybacks, by the first half of FY25.

Key Financials
EBIT
$806 million
Statutory Net Profit After Tax
$525 million
Underlying Earnings
$806 million
Net Profit
$409 million
Operating Cash Flow
$808 million
Return on Net Assets
12.8%
Earnings per Share (pre significant items)
$0.864
Total Dividends per Share
$0.47
Final Dividend per Share
$0.28
Dividend Payout Ratio
59% (second half earnings)
Compound Annual EBIT Growth Rate
24% from 2021 to 2024
Compound Annual EPS Growth Rate
19% over last 4 years
Capital Expenditure
$456 million
Net Debt
$1.6 billion
Gearing
26.2%
Cash
$581 million
Undrawn Committed Bank Debt Facilities
$1.4 billion
Blasting Solutions EBIT
$755 million
Trade Working Capital Improvement (excluding acquisitions)
$98 million
Scope 1 and 2 Emissions Reduction
43% below 2019 baseline
Sustainability Investment Since FY21
over $100 million
Benefit from Avoided Legislative Penalties (Australia and Canada)
over $200 million
Employee Engagement Score
89%
Earnings Call Recording
Other Earnings Calls
2024

Management

Mr. Sanjeev Kumar Gulab Gandhi M.B.A.
MD, CEO & Executive Director
No Bio Available
Mr. Angus J. Melbourne B.E., B.Sc.
Chief Technology Officer
No Bio Available
Ms. Leah Barlow
President of SHES, Discrete Manufacturing & Supply
No Bio Available
Mr. James Crough B.Com., FCPA, M.B.A.
Chief Financial Officer
No Bio Available
Ms. Delphine Monica Cassidy F.A.C.I.D., M.B.A.
Chief Communications Officer
No Bio Available
Ms. Jennifer Haviland B.Com., CPA
Chief People & Corporate Services Officer
No Bio Available
Mr. James K. Bonnor (Econ, B.Com., Mark)
President of Europe, Middle East & Africa
No Bio Available
Mr. German Morales Baeza M.B.A., M.Sc.
President of Australia Pacific and Sustainability
No Bio Available
Mr. Adam Luke Hall B.Com., BCOMM, L.L.B., LLB (HONS), M.B.A.
President of Asia
No Bio Available
Mr. Brian Gillespie B.Sc., M.B.A.
President of Latin America
No Bio Available

Contacts

Address
VICTORIA
Melbourne
1 Nicholson St
Contacts
+61300555175.0
www.orica.com