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Listed packaging group Nampak Zimbabwe reported a 5 percent decline in revenue to $95,9 million for the year to September 30, 2015 on the back of low aggregate demand.
Nampak Zimbabwe is the local unit of South Africa’s packaging giant Nampak, which holds a controlling 51,43 percent interest in the entity.
Operating profit for the period amounted to $4,1 million with management saying the out turn was depressed as a result of lower margins.
Profit for the period amounted to $2.4 million resulting in earnings per share of 0,32 cents.
Performance was however mixed at business unit level. In respect of the various divisions, CarnaudMetalbox recorded a 13 percent increase in revenue on improved can and HDPE bottle sales and returned to profit from a loss position the previous last year.
Hunyani recorded decline in revenue and operating profit by two percent and 59 percent compared to the prior period. And management believes that a reduction in costs and new machinery is expected to place the business on a solid footing for 2016.
MegaPak recorded a 13 percent decline in revenue compared to the prior year on depressed volumes for PET and pre-form products, driving operating profit down 43 percent .
Going forward, the group is confident of positive yields in the long-term on the basis of its “current investment into additional capacity and expanded product range”, but believes that there is “little short-term relief in sight for the manufacturing industry.”
The board did not declare a dividend for the year. – BH24.
Online Reporter