Online Reporter
Nelson Gahadza
NAMPAK Zimbabwe invested US$2,3 million during the half-year period ending 31 March 2025, primarily directed towards expansion initiatives and enhanced generator capacity at its subsidiary, Megapak.
Group Managing Director, Mr John Van Gend, stated in the financial report that the group continues to assess additional projects aimed at maintaining or improving operational capacity.
He noted: “The outlook for the group remains promising, with growth prospects in the beverage markets. The group will also continue to sustain high efficiencies, good product quality, and rigorous customer support.”
Mr Van Gend also highlighted encouraging short-term growth prospects in the corrugated packaging market, driven by an increased tobacco crop in 2025. Other strategic initiatives include enhancing capacity and improving operational efficiencies.
Nampak Zimbabwe remains under a cautionary notice regarding the concluded sale and purchase agreement between Nampak Southern Africa Holdings Limited and TSL Limited.
The agreement, which is subject to various suspensive conditions, involves a US$25 million offer from TSL Limited for a 51,43 percent stake in Nampak Zimbabwe. Once finalised, the deal is expected to be a significant development for the market.
During the reporting period, Hunyani Paper and Packaging recorded sales volumes 30 percent lower than the prior period.
Mr Van Gend attributed this decline to reduced tobacco carry-over volumes, following a smaller 2024 crop compared to the bumper harvest in 2023. Commercial volumes were also 25 percent lower, as more customers have begun self-manufacturing.
“Management is focusing on cost optimisation initiatives to become more competitive and expand our regional footprint to replace these lost volumes,” he said.
Volumes in the cartons, labels, and sacks division have shown signs of recovery, as the business continues repositioning efforts to regain market share.
In the plastics and metals segment, sales volumes were six percent below the prior period, impacted by increased competitive pressures and subdued demand due to a general slowdown in economic activity across certain consumer segments.
Mr Van Gend noted that frequent plant breakdowns in Ruwa, caused by power outages, also affected the company’s ability to meet customer demand.
“We have installed additional generator capacity to minimise the impact of the stop-starts and improve efficiencies,” he said.
He also cited the informalisation of the retail sector and disruptions to distribution channels as contributing factors to the decline in demand from some customer segments.
At CarnaudMetalbox, sales volumes for the half-year were five percent below the prior period. In plastics, HDPE volumes were 10 percent higher due to increased demand.
However, “metals volumes were significantly below the prior period due to raw material availability and product portfolio rationalisation, while closures were 20 percent below the prior period due to weak demand,” said Mr Van Gend.
derick.khumalo