JSE-listed packaging company Nampak reports that, for the quarter ended June 30, trading conditions improved significantly in comparison with the corresponding period of 2020.
During the same time last year, most of Nampak’s businesses were impacted on by a combination of hard lockdowns and alcohol bans in many of the geographies where the group operates.
For the nine months to June 30, improved trading conditions, a successful restructuring and cost savings initiatives have resulted in a 24% year-on-year increase in revenue and significant improvements in operating results.
Meanwhile, the company reports that it has complied with group funding covenants during the period under review, and that, as a result, its earnings before interest, taxes, depreciation and amortisation (Ebitda) were 2.99 times below the revised 4.50 times limit for the quarter end.
Ebitda interest cover was 4.06 times greater than the required minimum of 2.25 times.
Nampak notes that these Ebitda ratios are also within the original covenant limits of less than or equal to three times for net debt to Ebitda and greater than or equal to four time for Ebitda to interest cover.