JSE-listed Transpaco on Wednesday reported an across-the-board year-on-year decline amid challenging economic conditions.
“Revenue, operating profit and headline earnings declined as a result of selling price deflation, reduced customer spend and continued softening demand for recycled material,” said Transpaco CEO Philip Ableheim.
During the financial year to June 30, the plastics and packaging group experienced a decrease in turnover to R1.6-billion, from the reported R1.7-billion in the 2016 financial year.
Operating profit also contracted from R157-million in 2016 to R121.7-million in 2017.
However, the balance sheet remained robust, with the group ending the year in a net cash positive position.
“The combination of our continued aggressive focus on marketing and sales strategies, disciplined working capital management and controlled operating costs ensured we were better positioned to navigate the challenging economic conditions,” he said.
The company’s gross profit percentage increased slightly; however, the operating margin declined to 7.4% for the year under review, from 9.2% in the prior year.