Orora's Saverglass Slump Reveals a Broader Alcohol Glass Market Downturn

A Middle East facility shutdown triggered a sharp EBIT downgrade, before August's result confirmed the weakness reflects a global glass market slump rather than a one-off disruption.

31 Aug 2026 · 3 min read

Orora fell 30.5 percent in April after its Saverglass premium glass packaging business, disrupted by a Middle East conflict-driven shutdown of its Ras Al Khaimah facility in the UAE, forced a mid-to-high double-digit EBIT downgrade, with fund managers split between those citing continued structural weakness in the global glass industry and those who saw the stock as trading near a bargain net tangible asset value.

A Middle East disruption compounds structural glass weakness

Ellerston Capital said the stock fell 30.5 percent in a disappointing trading update, with Saverglass EBIT guidance for FY26 downgraded 17 percent to €63 million to €68 million at the midpoint, from broadly in line previously, and while Orora maintained EBIT guidance for its Cans and Gawler businesses, analysts quickly forecast group-level EBIT guidance would need to be lowered to around A$250 million, 8 percent below prior guidance. Antares Capital said its overweight position detracted as Orora's Middle East operations were impacted by the US-Iran conflict, with the company now expecting demand for glass bottle packaging in the second half of FY26 to run materially below budget, reflecting heightened economic uncertainty weighing on discretionary consumption including alcoholic beverages. Ten Cap said its short position contributed positively after the 17 percent Saverglass EBIT cut, arguing weak industry demand and increasing competitive pressures continue to weigh on earnings, leaving it cautious on the broader outlook. Perpetual Asset Management said Orora was a significant detractor, falling 30.5 percent, with management cutting FY2026 EBIT guidance for Saverglass by mid to high double digits, driven by the shutdown of its Ras Al Khaimah facility in the UAE amid conflict-related security concerns, logistics disruptions and constrained shipping access.

Management cut FY2026 EBIT guidance for its Saverglass premium glass packaging business by mid to high double digits, driven by the shutdown of its Ras Al Khaimah facility in the UAE amid conflict-related security concerns, logistics disruptions, and constrained shipping access.

— Perpetual Asset Management, Monthly Report, April 2026

A bargain-hunter's entry point emerges

Akambo said it introduced Orora into the portfolio as the share price had fallen to near its net tangible assets per share of $1.05, expecting earnings to benefit from capacity expansion and rationalisation initiatives.

We introduced Orora (ORA) into the portfolio as the share price has fallen to near its net tangible assets per share of $1.05, and we expect earnings to benefit from capacity expansion and rationalisation.

— Akambo, Monthly Report, June 2026

August confirms the glass market downturn is broader than one facility

Pendal Group said the stock performed in line with the market, down 2.0 percent, despite a weak FY26 result that saw consensus FY27 estimates cut 4.6 percent, with the weakness driven by Saverglass navigating a downturn in the global alcohol glass market, as management pointed to softer market pricing for glass alongside a negative mix shift from higher-margin luxury spirits bottles toward lower-margin wine and champagne bottles.

What fund managers say they are watching next is whether the global alcohol glass market downturn stabilises, resolution of the Ras Al Khaimah facility disruption, delivery on the capacity expansion and rationalisation benefits Akambo expects, and whether the stock's proximity to net tangible assets provides a genuine valuation floor.