By Stephen Chandisareva
HARARE – Nampak Zimbabwe reported an inflation-adjusted revenue of $172.5 billion in the first quarter of the fiscal year 30 September 2024, which went up 19% from the same period of the previous year.
The results came as a surprise to many, as the company had previously announced a going concern warning.
“Volume increases in the business units and inflationary pricing contributed to revenue growth,” John Van Gend, group managing director, said in a statement accompanying the results.
“The group remains profitable despite the difficulties faced.”
Volumes, a key indicator of demand, were up 8% ahead of the prior year.
“However, some product categories such as metals were behind prior year mainly due to raw material shortages over the period under review,” he said.
The firm was not spared from power outages, which affected the smooth running of its factories.
“The first quarter from October 2023 to December 2023 was negatively affected by exchange rate volatility and power shortages mainly at the Ruwa plant as well as a ZESA fault at CMB in December which lasted for two weeks,” he said.
“The ongoing disruptions in power supplies at Ruwa, resulted in the increased usage of generators which in turn caused disruptions on production lines due to the quality of power supplied.”
In the period, there was a rise in inventory, which raised net working capital.
“The group closing cash balance was $19.4 billion at the end of the first quarter,” he said.
“Most of this cash balance will be applied towards stock replenishment and the settlement of trade payables.”
Nampak share price was flat at $500.00 in Thursday’s session.