Chronicle Editor
Nokuthaba Brita Ncube,
Nampak Zimbabwe Limited, a listed paper and packaging group, has reported that overall demand for packaging remained largely static during the year, compared to the previous period.
The company, which manufactures paper, printing and packaging products, leases biological assets, and operates a timber processing plant, continues to operate through various segments, including printing and converting, plastics and metals, and services.
In its consolidated results for the year ended 30 September 2024, Nampak’s group managing director, Mr John van Gend, stated that while overall packaging demand remained stable, tobacco-related packaging experienced a decline due to the adverse effects of an El Niño-induced drought.
“Management has continued with its focus on cost containment and operational efficiencies, whilst exploring new opportunities to improve both product offerings and quality,” Mr van Gend said.
The company reported capital expenditure amounting to US$3.5 million, primarily focused on projects aimed at increasing capacity and improving plant services.
Management also highlighted that several significant capital projects are under review, and should conditions allow, the company intends to implement these initiatives.
In the printing and converting segment, Hunyani Paper and Packaging sales volumes dropped by 8.4 percent compared to the previous period, largely attributed to reduced demand for tobacco cartons.
In contrast, the Cartons and Labels Division saw a decline of 1.1 percent in demand, a decrease caused by the reduced tobacco crop. However, the segment was partially offset by gains in the commercial categories.
The plastics and metals segment saw a 10.2 percent increase in volume, driven by higher demand for PET preforms and HDPE closures.
However, the company noted that production volumes were somewhat constrained by severe power outages throughout the year in Ruwa, which limited their ability to operate at full capacity.
Sales volumes for CaraudMetalBox decreased by 0.57 percent compared to the previous year, though there was growth in both closures and HDPE categories.
The group noted that metal volumes had also declined compared to the prior year.
Overall, Nampak Zimbabwe is navigating a challenging environment, with external factors such as power shortages and adverse weather conditions impacting performance.
The company remains focused on maintaining operational efficiency and exploring new opportunities to adapt to market demands.
Online Reporter