Despite challenging economic conditions, JSE-listed packaging manufacturer Transpaco saw double-digit growth for the year ended June 30, with headline earnings up 38% to R108.4-million.
Headline earnings a share grew 36% to 330c, up from 243.3c during the same period last year.
Operating profit was up 42% to R157-million, while net asset value a share increased 14.8% to 159c, compared with 139c in the prior year.
Turnover increased 26% to R1.7-billion from R1.4-billion last year, driven by the plastics division’s strong performance.
Turnover growth was also boosted by increased sales volumes and price increases, supported by focused marketing and sales strategies.
Further, Transpaco improved manufacturing, distribution and administration efficiencies to control costs, which supported the company's solid performance for the year.
Commenting on the results, CEO Phil Abelheim noted that, in addition to meeting and exceeding financial objectives, the group advanced its transformation initiatives with the launch of an upskilling programme aimed at employees, their children and unemployed disabled individuals.
“Transformation emphasis was also placed on supplier and enterprise development support for black-owned small, medium-sized and microenterprises. We also converted all long-term labour broker employees into full-time employees and ended all long-term labour broker contracts,” he said.
Looking ahead, Abelheim said that the company expected challenging trading conditions to prevail, particularly in the company’s recycling operations, given the slowdown in demand in both South Africa and neighbouring markets.
“Nonetheless, our growth strategy has clearly proven its mettle and we will continue targeting organic growth and pursuing appropriate acquisitions, supported by strict financial controls,” he added.
Transpaco’s share price closed yesterday at R27.00.