Photo by: Duane Daws
JSE-listed Nampak expects its headline earnings a share from continuing and discontinued operations for the year ended September 30, to be between 47c and 56.3c lower than the 234.7c a share recorded in the 2014 financial year.
The packaging company added that its earnings a share would be between 18.6c to 26.1c lower than the 186.3c reported the year before.
CEO André de Ruyter commented that the legacy of operational challenges experienced during the year, including operating difficulties at its glass facility and the higher-than-anticipated spoilage at its Springs beverage can operation – although under control, had a negative impact on Nampak’s earnings.
“Outside South Africa, we continue to navigate a challenging macroeconomic environment in countries where we operate and currency issues in Angola and Nigeria have had an impact on our ability to repatriate earnings from these operations,” he said.
However, De Ruyter highlighted that the group’s balance sheet remained strong, with sufficient headroom to its debt covenants.
“We were able to defend our strong market positions with the successful conclusion of long-term sales agreements in our Bevcan, DivFood and Glass businesses,” he added.
Nampak’s results would be published on November 26.