Strong topline upswing for Nampak

CLOUDINE MATOLA

 

Zimbabwe’s largest packaging company, Nampak Zimbabwe Limited, reported a robust uptick in sales with the topline growing  45.6% to ZWL$573.78bn in the 12 months to September 30, 2023 from ZW$573.78bn from ZW$394.15bn reported in the prior comparative year.

This gain was mostly due to an improvement in packaging demand over the reviewed period.

In the period under review, net profit for the year was ZWL$51.6bn, a 142.25% increase from ZWL$21.3bn reported in the prior comparative period.

Due to the year-round demand for tobacco cartons, Hunyani Paper and Packaging, a Nampak  printing and converting unit,  saw a 13,4% increase in sales volumes over the previous year.

Sales volumes at CarnaudMetalBox, a metal packaging unit, increased by 4.7% over the reviewed period in comparison to the previous year. Strong rise in the HDPE and closures categories was the main driver of the improvement.

However, metals volumes decreased from the previous year.

Mega Pak, the company’s plastics packaging division, saw a 2.5% drop in sales during the review period as compared to the prior year as a result of power outages that hampered production.

“The overall demand for packaging improved during the year, compared  to the previous year. The company benefitted from the volume growth experienced by our customers on the back of increased disposable income of customers.

“In the year under review, management continued with its focus on cost containment and operational efficiencies, whilst looking for new opportunities to improve both product offering and quality. We continue to invest in the business where we see opportunity,” Group managing director, John van Gend said.

The group’s capital expenditure for 2023 increased to ZW$13.14 bn from ZW$12.44 bn the previous year.

In light of the potential for significant headwinds, such as the unfavorable effects of El Nino, van Gend stated that the group will concentrate on cost containment and margin preservations this year.

“The 2023 trading year saw a lot of complexities in the operating environment particularly around currency, inflation and power shortages. We however noted some volume growth, and improved demand despite these challenges. The economy will be affected by the anticipated effects of El Nino which could impact the agricultural season ahead. The group will continue to focus on cost control and margin preservation in order to meet these challenges,”van Gend said.

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