By ETimes
HARARE – NAMPAK ZIMBABWE has delivered a mixed financial performance for the year ended 30 September 2025, with key performance indicators showing both resilience and pressure in a highly competitive manufacturing landscape.
The group recorded revenue of US$93.16 million, a 8% decline from last year’s US$101.28 million, reflecting reduced demand in commercial cartons and persistent competitive pressures in plastics and metals.
Despite the revenue dip, the company demonstrated strong cost discipline, reflected in an improved trading income margin, with trading income coming in at US$10.81 million. Although this was lower than the US$16.39 million achieved in 2024, management emphasised efficiency measures across operations.
Group Managing Director John Van Gend acknowledged the challenge, noting that “the competitive landscape intensified across all segments, but we remained focused on cost containment and operational efficiencies.”
A standout KPI this year was profitability. Profit before tax rose to US$11.21 million, supported by other income of US$4.66 million, largely driven by exchange gains on foreign-denominated receivables and cash. After tax, the group earned US$7.81 million, a significant swing from the US$1.74 million comprehensive income of the previous year.
Van Gend attributed this to the “non-recurrence of hyperinflation monetary losses and a stronger working capital position.”
Cash generation was another highlight. Operating cash flows before working capital changes increased to US$13.56 million, while net cash from operations jumped 62% to US$8.94 million. After financing activities, the group closed the year with a healthy US$6.76 million cash balance, strengthening its liquidity position and lifting the current ratio to 2.9 times.
On the balance sheet, total assets declined to US$44.56 million due to reductions in cash and some property-related balances, while equity decreased to US$27.95 million, largely affected by a US$3.23 million foreign exchange translation loss.
Despite this, the net asset value per share climbed 28% to 4.73 US cents, signalling improved underlying shareholder value.
Volumes were down 5% year-on-year, with Hunyani, Mega Pak and CMB all facing category-specific pressure. Tobacco packaging and HDPE products provided partial relief, but preforms and commercial cartons remained under strain.
“We expect a difficult year ahead, but our focus on cost control and margin preservation continues to position the group well,” Van Gend commented.
Capital expenditure amounted to US$3.62 million, directed toward increasing capacity and upgrading critical plant equipment. Management confirmed that several large projects are under review, aiming to bolster long-term competitiveness.
The group declared no dividend, prioritising cash preservation for the capex programme.
Our Thoughts
Nampak Zimbabwe exits FY2025 as a company that is financially stable but strategically at a crossroads. The underlying numbers show a business that is resilient, liquid and capable of generating strong cash flows under pressure. The uplift in profit before tax, significantly improved cash generation and strong liquidity ratio all point to a business that is operationally sound and managing its risks effectively.
However, several stress points must be acknowledged. The decline in revenue and volumes across major product categories reflects structural competitive shifts rather than temporary weaknesses. Customers moving into self-manufacture and the aggressive expansion of lower-cost producers present long-term margin risk. The erosion in trading income and the heavy reliance on exchange gains to support profitability in 2025 indicate that core operational profitability requires strengthening.
The balance sheet remains healthy, but the drop in equity due to translation losses and reduced cash balances suggests sensitivity to currency volatility. The ungeared position is a strength, giving the group headroom to restructure operations or invest strategically without balance-sheet pressure.
Nampak Zimbabwe remains a solid going concern with strong liquidity, disciplined cost control and good cash flow. However, to restore growth, the company must urgently accelerate product innovation, defend market share in plastics and commercial cartons, and deliver the planned capacity-enhancing capex. Without these shifts, FY2026 may bring sustained pressure on revenue and margins despite the company’s otherwise stable financial foundation.
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