daniel chigunweBusiness Writer
Nampak Zimbabwe Limited, a listed paper and packaging group, says it has a positive order book and has sufficient orders in the tobacco, commercial and horticultural sectors, confirming its status as a going concern and being debt-free.
Nampak is engaged in the manufacturing of paper, printing and packaging products, leasing biological assets and the timber processing plant.
In its audited results for the year ended 30 September 2024, the entity says the overall demand for packaging remained fairly static during the year under review compared to the previous year.
“The macro-economic problems which have faced us in the manufacturing sector, have yet to be solved. However, the Group’s order book remains positive and the Group remains free of debt. The unsettling war in the Middle East, as well as in Ukraine, have affected to some extent our supply chain of raw materials, which coupled with the pressures we face of erratic power, will present difficulties in the year ahead.
“El Nino’s effect on the agricultural sector has not been as severe as originally envisaged and we are hopeful of adequate orders in the tobacco, commercial and horticultural sectors. I am confident that the Group can weather the difficulties ahead. I must add that we remain a going concern,” Managing director John van Gend said.
In the period under review, the group achieved turnover for the year of US$101,28 million and a trading income before adjustments of US$16,39 million.
A profit before tax of US$14,98 million was achieved.
The profit before tax takes into account other income of US$ 4,66 million and a net monetary loss adjustment of US$ 6,07 million relating to the first half of the year.
The total comprehensive profit attributable to shareholders amounted to US$1,74 million after taking into account the impact of presentation currency change amounting to US$3,2 million classified under other comprehensive income.
It noted that the sales volumes for the full year decreased by 8,4 percent compared to prior year.
The decrease was due to reduced demand for tobacco cartons throughout the year, on the back of the regional drought experienced in 2024.
Demand at Cartons and Labels Division was 1,1 percent behind prior year, curtailed by the reduced tobacco crop, but offset by gains in the commercial categories.
No dividend was declared in view of the need to conserve available cash resources to fund capital expenditure.
Bongani Ndlovu