JSE-listed plastics and packaging group Transpaco reported a 4.7% fall in operating profit to R78.5-million in the six months to December 31.
While in line with expectations, the company said its performance remained under pressure from the continued challenging economic environment, leading to a 5.4% decline in headline earnings a share to 168.2c.
However, the decrease in sales and continued margin pressure was partially offset by stringent, well-managed expenses, resulting in the operating margin remaining on par with the previous year.
Headline earnings declined by 5.3% to R55.3-million, while net asset value per share increased by 7.9% to R18.03.
"Our balance sheet remains robust owing to our strict working capital management strategy," said CEO Philip Abelheim.
All Transpaco divisions traded favourably, notwithstanding a decline in the plastics division, which was impacted on by price deflation.
Looking ahead, the group will continue its proven business strategy, targeting organic growth, while maintaining strict financial control and, at the same time, identifying and pursuing appropriate acquisitions.