Online Reporter
Business Writer
NAMPAK Zimbabwe Limited says its Mega Pak division recorded a 14 percent decrease in sales during the third quarter of the year compared to the same period last year.The decline was attributed to increased market competition and operational difficulties caused by severe power cuts at its factory in Ruwa, which led to more frequent plant breakdowns.
These disruptions hindered the company’s ability to meet customer demand effectively.
The Zimbabwe Stock Exchange-listed group said its unit has been using generators to mitigate the impact of the power outages.
While this measure helped to minimise downtime and maintain production levels, it also led to higher operating costs.
NamPak is closely monitoring the situation and actively exploring more cost-effective alternatives to improve the power supply and reduce reliance on generators.
“The third quarter sales volumes were 14 percent down on the prior year. Volumes were affected by increased competitor pressures, as well as higher plant breakdowns due to severe power cuts in Ruwa. This negatively impacted our ability to meet customer demand.
“The use of generators has mitigated the impact of the power cuts, albeit at higher operating costs. Management is actively monitoring this whilst exploring cheaper alternatives for improved power supply,” said NamPak group managing director Mr John Van Gend in the company’s trading update for the third quarter and nine months ended June 2025.
The company said it will prioritise finding a sustainable solution to the power supply issues to restore production capacity and meet customer demand more efficiently.
Addressing the root causes of the power cuts and exploring cheaper alternatives is expected to improve the division’s operational efficiency and competitiveness in the market.
NamPak’s sales volumes showed a strong performance in the third quarter, increasing by eight percent compared to the same period last year.
However, this growth was not uniform across all product lines.
Metal volumes experienced a significant decline compared to the prior year, primarily due to strategic product rationalisation in response to market conditions.
