JSE-listed packaging manufacturer Nampak, which on Tuesday reported a 3% year-on-year rise in headline earnings a share to 108.8c for the six months ended March 31, announced that its CEO Andrew Marshall would retire in March 2014.
“The board wishes to thank [him] for his valuable contribution to the group. During his tenure, the group’s expansion into the rest of Africa was accelerated, underperforming businesses were closed or sold and profitability improved significantly,” the company said in a statement.
In line with its succession planning policy, Nampak would consider internal and external candidates for the position and would make a further announcement in due course.
Meanwhile, the packaging manufacturer expected to continue seeing good results from the rest of Africa in the months ahead, but consumer spending in South Africa would likely continue to impact on its South African revenues.
“Overall, we believe the group is strategically well-positioned for ongoing growth, especially in Africa,” Nampak stated.
The group’s revenues for the six months ended March 31 increased by 7% to R9.38-billion, compared with R8.78-billion in the first six months of the 2012 financial year.
Nampak’s operating profit, excluding abnormal items, increased by 6% to R951-million in the first half of the financial year, compared with R894-million in the prior comparable period.
Its trading margin held steady at 10.1%, compared with 10.2% in 2012.
The group noted that its trading profit in the rest of Africa had increased from R142-million to R197-million in the period under review, with strong performances by Angola and Zambia.
However, in South Africa, trading profits were lower as a result of reduced contributions from the glass, food and the diversified can businesses, as well as lower profits from the paper and flexible segment.
In the UK, trading profit had been flat year-on-year in pound terms, but higher in rand terms owing to the weaker rand exchange rate.
Nampak spent R631-million in capital expenditure during the six months under review, compared with R461-million in the prior comparable period. R325-million had been spent on a new aluminium beverage can line in Springs.
The group further noted that it had successfully raised $175-million in the US private placement market to fund its African expansion strategy.