Guess which ASX 200 stock is rising after reporting a 24% earnings jump

The market appears happy with this company's FY 2023 results. Let's see why…

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It isn't just National Australia Bank Ltd (ASX: NAB) releasing its full-year results this morning.

Another ASX 200 stock has just handed down its own report card and revealed that it delivered even stronger profit growth than NAB.

That company is a commercial explosive and blasting systems provider Orica Ltd (ASX: ORI).

Its shares are up 3% to $15.50 following the release of its full-year results.

ASX 200 stock rising on strong FY23 profit growth

  • Sales revenue up 12% to $7,945.3 million
  • Earnings before interest and tax (EBIT) from continuing operations up 24% to $698.1 million
  • Net profit after tax (before one-offs) up 16% to $369 million
  • Final dividend of 25 cents per share
  • Return on net operating assets (RONA) up 1.2 percentage points to 12.6%

What happened during FY 2023?

For the 12 months ended 30 September, Orica reported a 12% increase in sales revenue to $7,945.3 million and a 24% lift in EBIT from continuing operations to $698.1 million.

Orica's underlying EBIT growth reflects volume growth, increased utilisation of manufacturing plants, benefits from commercial discipline in both customer and supply contracts, and increased earnings from digital technology offerings. This was offset partly in Mining Chemicals, mainly due to the planned cyanide plant turnaround.

The ASX 200 stock's managing director and CEO, Sanjeev Gandhi, said:

We have delivered another strong performance for the full year with a 24 per cent growth in underlying earnings from continuing operations. Our team remains committed to executing our strategy and has delivered improved performance and growth across all segments this year with a continued focus on quality of earnings.

Ongoing commercial discipline and strong customer demand for our products and services have driven our performance this year, along with increased adoption and earnings from blasting and digital technologies as customers seek productivity gains and support on achieving their sustainability goals.


Guidance for FY 2024 was positive but limited. Management advised that it expects EBIT from continuing operations "to increase on the pcp."

This is expected to be underpinned by strong demand for its products and services from continued anticipated growth in global commodities, as well as increased adoption of blasting and digital technology offerings. This should be supported by further benefits from commercial discipline.

Looking further out, the company advised that the outlook for the next three years is expected to deliver a 3-year average RONA in the range of 12% to 14%. This is up from its previous range of 10.5% to 13%.

Mr Gandhi said:

Our prudent balance sheet positions us well to manage the volatile external environment, to support further business growth and climate change initiatives and to deliver improved shareholder returns. Our commercial discipline, strong customer demand, supply security, technology offering, and diversified customer and commodity mix will support our business well into the future and we remain in a strong position to continue the business momentum and drive our strategy for growth.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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