The best performer on the S&P/ASX 200 Index (ASX: XJO) on Wednesday has been the Orora Ltd (ASX: ORA) share price.
In afternoon trade the packaging company's shares are up a sizeable 8% to $2.71.
Why is the Orora share price storming higher?
Investors have been buying Orora's shares on Wednesday following the release of its annual general meeting update.
As well as providing a summary of its performance in a very difficult FY 2020, the company provided investors with an update on how it was faring in the new financial year.
According to the release, the company notes that the combination of COVID-19 and the pending US election has seen some challenges and uncertainty persisting. Nevertheless, management revealed that Orora's businesses have continued to prove their strength and resilience, with all three continuing to operate as essential service providers.
Pleasingly, at the end of the first quarter, the Australasian Beverage Business has continued to deliver as a market leader in all segments. This has led to its segment earnings before interest and tax (EBIT) being in line with the first quarter of the prior year despite an adverse product mix.
Things were even better in North America, where both its OPS and Orora Visual businesses have been trading steadily. So much so, EBIT across both businesses is tracking ahead of the first quarter of last year.
Management revealed that the strengthening of the North American performance is thanks largely to its comprehensive business improvement plans. It notes that these plans have delivered, despite the ongoing challenges and uncertainty within the region.
What's next for Orora?
No guidance has been given for the remainder of the half or the full year.
However, management is confident that its revised strategic approach and prudent approach to capital will help Orora continue to move from strength to strength.
