Nampak revenues bulk 43 pc to $52 bln

Enacy Mapakame

Listed packaging group, Nampak Zimbabwe Limited’s revenue for the year to September 30, 2022 jumped 43 percent to $52,52 billion compared to $36,69 billion achieved in the prior year on the back of volume growth.

During the period under review, exports also for its Mega Pak division, registered a recovery in the regional markets compared to the prior year.

A profit before tax of $8,75 billion was achieved compared to $5,76 billion in the same period last year.

According to Nampak, the profit before tax takes into account other material income of $2,48 billion and a net monetary loss of $4,11 billion. Other income, in the main, comprises exchange gains on foreign denominated debtors and cash balances.

Profit for the year remained flat at $2,6 billion. Earnings per share at 346,12 cents were below prior year’s 347,03 cents.

During the year under review, overall demand for packaging improved significantly compared to the previous year with the company benefiting from improved economic activity led by a rebound in agriculture and mineral commodity prices.

“We continue to invest in the business where we see opportunity. The group achieved sales for the year in inflation adjusted terms of $52,52 billion,” managing director John van Gend said in an update for the year under review.

He said the company worked hard on cost reduction initiatives and improving the working capital cycles.

In terms of operations, Hunyani Paper and Packaging recorded a 11,9 percent sales volume growth on the back of firm demand for tobacco cartons throughout the year, as a result of an improved tobacco crop and regional exports.

“Demand was somewhat curtailed by raw material supply constraints. Demand at the Cartons and Labels Division was subdued,” said van Gend.

Full year sales volumes at Mega Pak increased by 7,4 percent versus 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 percent compared to the prior year driven by strong growth in the closures and metals categories. However, HDPE volumes were slightly down.

During the year, capex amounted to $1,66 billion compared to $1,08 billion from the prior year focused mainly on completion of projects commenced in the previous year.

Van Gend said the group currently has some significant capital projects currently being reviewed by management.

“…should funds become available, it is our intention to implement them,” he said.

Nampak did not declare a dividend in order to preserve capital.