…after spending $1.66bn on capex in FY22
By ETimes
Nampak Zimbabwe says it spent $1.66 billion on capital expenditure for the year ended 30 September 2022 and is now reviewing a few significant capital projects that could come online depending on the availability of funds.
In the prior comparative period, the company spent $1.08 billion.
“Capital expenditure in hyperinflation terms amounted to $1.66 billion and focused mainly on completion of projects commenced in the previous year,” group managing director John Van Gend said in a statement accompanying the group’s full year results.
“There are some significant capital projects currently being reviewed by management and should funds become available, it is our intention to implement them.”
Local businesses have recently been pushed to replace old machinery in order to improve operational efficiencies.
Accordingly, the group did not declare a full-year dividend, citing the need to allocate resources for plant refurbishments.
“The need to retain sufficient reserves to cover the working capital requirements remains a priority, as does the need for capital expenditure to upgrade our plant,” Van Gend said.
“Under these circumstances, which also include continuing economic uncertainty, the Directors have decided to waive declaration and payment of a dividend. However, consideration is being given to the payment of a dividend in 2023.”
On divisional operations, Hunyani Paper and Packaging sales volumes for the full year improved by 11.9% compared to the prior year. This was attributed to firm demand for tobacco cartons throughout the year, on the back of an improved tobacco crop and regional exports.
The full year sales volumes at Mega Pak increased by 7.4% versus the prior year, mainly due to strong demand across all product categories and improved raw material availability.
At CarnaudMetalBox, sales volumes for the full year grew by 9.1% compared to the prior year. The improvement was driven by strong growth in the closures and metals categories. HDPE volumes were slightly down.
According to the figures, the group’s inflation-adjusted sales increased 43.14% to $52.52 billion from $36,69 billion the previous year.
The company realized a hyperinflated trading income before adjustments of $10.34 billion and a profit before tax of $8.75 billion – Harare