JSE-listed packaging firm Astrapak on Friday said it expected to report a loss a share of between 42c and 44c for the six months ended August 31, compared with a loss a share of 23.4c in the prior comparative period, mainly owing to the impact of industrial action.

It would also report a headline loss a share of between 33c and 33.3c, compared with a headline loss a share of 1.5c in the six months ended August 2013.

Astrapak explained that strike action in July, which had shut down product capacity for nearly a month, had cost the group a provisionally estimated R30-million.

“The strike action during the month of July had a damaging impact on the group and the related labour unrest, which was not limited to Astrapak or the industry, was amongst the worst the group has experienced with all of Astrapak’s converting operations being affected and the majority unable to function for almost the entire month.

“The management team implemented a number of contingency plans and successfully engaged with all relevant parties, though in certain instances there was no alternative but to declare force majeure with a limited number of directly affected customers.

“Profitability was adversely impacted due to lost sales, productive downtime, significant under recovery of costs and increased costs associated with security and distribution,” Astrapak pointed out.

The group had undertaken downsizing actions immediately following the strike to protect the commercial viability of certain operations, which also contributed to the losses.

Further, Astrapak highlighted that it had, during the period under review, continued to implement strategic measures as part of its two-year recovery programme to turn the group around.

Costs relating to these strategic interventions amounted to about R26-million in the six months under review.

Astrapak assured shareholders that, despite the expected interim loss, the group’s financial position remained sound.

“Net working capital days have improved to 40 days, from 47 days in the corresponding period in 2013. Net interest-bearing debt has reduced from the position as at February 28, and the debt-to-equity percentage is now below 30%.”

The group would publish its results on September 29.