Feb 22, 2012
Packaging manufacturer Transpaco delivers strong performanceBack
Disaki Cores And Tubes|Flow|Industrial|Packaging|Resources|Transpaco|Equipment|Flow|Information Technology Infrastructure|Packaging|Infrastructure|Phillip Abelheim|Operations|Information Technology
© Reuse this
The company’s turnover was boosted by the contribution of Disaki Cores and Tubes, which was acquired in November 2010. Turnover grew by 21.2%, to R552.8-million.
However, headline earnings a share were down by 3.1%, as a result of 3.3-million additional ordinary shares being issued during the period. The increase was owing to Transpaco’s broad-based black economic-empowerment shareholder converting its preference shares into ordinary shares towards the end of the previous financial year.
Transpaco CEO Phillip Abelheim pointed out that there were no further preference shares in issue.
Disaki’s contribution, and stringent control of group operating costs saw operating profit from continuing operations grow by 4.2%, to R63.3-million. Coupled with a strong operational cash flow the group was able to maintain gearing at 7%.
The solid performance reflected management’s focus on innovative growth initiatives and optimising efficiencies. “Keeping a sharp focus on business fundamentals remained key to Transpaco’s ongoing growth. We concentrate on business basics irrespective of trading conditions,” he said in a statement.
He added that Transpaco’s strategy of investing in plant, equipment and information technology infrastructure had increased capacity and ensured the group’s competitiveness locally and against imports. Transpaco recently installed a third line at a cost of R24-million to increase capacity in the growing pallet stabilisation market.
Meanwhile, Transpaco closed underperforming operations during the period. “We made the decision to discontinue our weaker polyvinyl chloride and polyethylene terephthalate operations, which had enabled us to redeploy resources into exciting new opportunities,” Abelheim said.
Transpaco is currently in the process of establishing a high-volume polypropylene recycling facility, reaffirming the group’s commitment to green initiatives. “The recycling of pre- and post-consumer polypropylene will see Transpaco expanding its foothold in the recycled plastics market. Currently the group operates a substantial post-consumer polyethylene recycling division," he added.
Going forward, Transpaco was optimistic, but cognisant of the challenging economic conditions.
Transpaco increased its interim dividend by 7% year-on-year to 31c a share.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Other Manufacturing News
Much like South Africa was seen as an automotive hub, white appliance manufacturer Defy aimed to establish the country as a hub for the export of white appliances, Koc chairperson Mustafa Koc said on Monday. As Koc subsidiary Arcelik Group leveraged its $324-million...
Article contains comments
The Mineral Beneficiation Action Plan (MBAP), which is currently in draft form, should be finalised by the end of March 2015, the Department of Trade and Industry (DTI) has confirmed. The department is leading the drafting process, which also involves the National...
Hyundai Automotive South Africa (SA) opened a semi-knocked-down (SKD) assembly plant in Apex, Benoni, in September, as part of a multimillion-rand investment in its commercial vehicle division in the local automotive market. The rationale behind the SKD commercial...
Updated 5 hours ago The South African National Accreditation System (Sanas), which operated under the auspices of the Department of Trade and Industry (DTI), is embarking on a drive to develop synergistic accreditation bodies across Africa to bolster international trade. The continent’s...
Updated 5 hours ago Electricity utility Eskom says it and Anglo American have concluded a Memorandum of Understanding (MoU) that maps out the process to be followed to enable the parties to conclude a final coal-supply contract for the Kusile power station, which is currently being...
Updated 5 hours ago South Africa has dropped four places to rank eighty-third in the World Energy Council’s 2014 Energy Trilemma Index as the country’s performance remained stagnant, while other countries such as China and Nigeria improved their rankings. The WEC Energy Trilemma Index...
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
This Week's Magazine
JSE-listed real estate investment trust (REIT) Rebosis Property Fund achieved a distribution growth of 8.1% to 99.45c per linked unit in the financial year ended August 31, despite volatile market conditions.
A low-cost, inflatable incubator won this year’s international James Dyson design award, which aims to encourage and inspire the next generation of design engineers.
The World Bank released its ‘Doing Business 2015: Going Beyond Efficiency’ report last month and ranked South Africa 43 out of 189 global economies for its ease of doing business, with Singapore topping the rankings.
Air Products South Africa officially launched its R300-million Eastern Cape air- separation unit (ASU), at its new manufacturing facility in the Coega Industrial Development Zone (IDZ), earlier this month. It is the second facility that Air Products launched in South...
BMW South Africa (SA) has signed a power purchasing agreement with energy company Bio2Watt. The offtake partnership will bring renewable energy to the carmaker’s Rosslyn plant, north of Pretoria.