https://www.engineeringnews.co.za

Nampak H1 results hampered by S African trading environment

Nampak H1 results hampered by S African trading environment

Photo by Duane Daws

26th May 2015

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

Font size: - +

JSE-listed packaging company Nampak’s headline earnings a share for the six months to March 31, fell by 8% year-on-year to 101.6c a share, owing to challenging trading conditions in South Africa.

“Nampak’s group performance had a mixed start to the current financial year with the first-half results benefiting from the continued growth and strong performance of our businesses in the rest of Africa, in particular Bevcan,” CEO André de Ruyter said in a statement to shareholders on Tuesday.

The overall group results for the six months under review benefited from a solid performance from the rest of Africa, as well as modest growth from some South African businesses, resulting in a 16% increase in group revenue to R8.7-billion.

Further, continued solid performances from Bevcan Angola and Bevcan Nigeria contributed to trading profit, which increased to 38%, from 27% in the prior comparable period.

However, the challenging South African trading environment, combined with the loss made by Nampak Glass, as well as cost increases associated with the ramp-up of recently commissioned projects, was pressuring trading margins.

As a result, group operating profit was down 9.2% to R904-million and the group trading margin at 9.8%. The group recorded net abnormal profits from continuing operations of R47.1-million, compared with a R100 000 net loss in the first half of 2014.

Nampak Glass experienced capacity constraints towards the latter part of the 2014 calender year, owing to the late commissioning of the newly installed third furnace, which occurred in peak season.

“The Nampak Glass issues are being addressed through the implementation of a comprehensive plan targeted at overcoming production inefficiencies and operational constraints, while we continued to deliver on our strategy to unlock value from our base business and to accelerate growth in the rest of Africa,” De Ruyter said.

He noted that the company’s Africa growth strategy would focus on metals and glass, the dominant packaging mediums for beverages. “We believe that these two packaging mediums have the potential for growth in excess of gross domestic product growth in the medium to long term,” he added.

The company was also evaluating  potential glass opportunities in Angola, Nigeria and Ethiopia.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Werner South Africa Pumps & Equipment (PTY) LTD
Werner South Africa Pumps & Equipment (PTY) LTD

For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...

VISIT SHOWROOM 
Rio-Carb
Rio-Carb

Our Easy Access Chute concept was developed to reduce the risks related to liner maintenance. Currently, replacing wear liners require that...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (15/03/2024)
15th March 2024 By: Martin Creamer
Magazine round up | 15 March 2024
Magazine round up | 15 March 2024
15th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.068 0.116s - 142pq - 2rq
Subscribe Now