• Mon. Mar 4th, 2024

Nampak to stay on course regarding costs

ByETimes

Jan 4, 2024

By ETimes

Nampak, a prominent packaging manufacturer, has affirmed its commitment to cost containment strategies in the upcoming financial year, anticipating the adverse impact of El Nino on agricultural demand.

John Van Gend, the Managing Director of Nampak, highlighted the challenges faced in the operating environment during the 2023 trading year, citing currency fluctuations, inflation, and power shortages. Despite these complexities, the company observed volume growth and increased demand.

Van Gend acknowledged the potential impact of El Nino on the economy, emphasizing the need for continued focus on cost control and margin preservation to navigate these challenges.

In the previous financial year, Nampak experienced overall improvements in packaging demand, attributed to customer volume growth driven by increased disposable income.

Hunyani paper and packaging division reported a notable 13.4 percent increase in sales volumes, buoyed by strong demand for tobacco cartons due to a record tobacco crop and improved regional demand. Meanwhile, the Cartons and Labels Division saw a 1.4 percent increase in demand, constrained by raw material limitations.

Mega Pak faced a 2.5 percent decline in full-year sales volumes, primarily due to persistent power outages in Ruwa affecting production capabilities. However, demand remained robust across all product categories.

CarnaudMetalBox exhibited a 4.7 percent growth in sales volumes, driven by strong performance in closures and High-Density Polyethylene (HDPE) categories, while metal volumes declined compared to the prior year.

Overall, the group achieved substantial sales growth in inflation-adjusted terms, reaching $573.78 billion, up from $394.15 billion the previous year. Trading income increased to $114.56 billion from $83.47 billion in 2022.

A noteworthy profit before tax of $118.32 billion marked a significant improvement from $59.37 billion in the prior year. The comprehensive profit attributable to shareholders amounted to $51.55 billion, with earnings per share at $6,822.52 cents, an improvement from the previous year’s $2,818.21 cents.

Capital expenditure in hyperinflation terms totaled $13.14 billion, focusing on capacity enhancement and plant service improvement projects. Management is reviewing significant capital projects, expressing the intention to implement them if funds become available.

Two interim dividends were declared during the year, with the first at $100.43 cents per ordinary share and the second at $160.00 cents per ordinary share – HARARE

By ETimes

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