Nampak’s 6 month turnover reaches R10 billion

Nampak, Africa’s largest packaging company today released its interim results for the six months ended 31 March 2009.

The results show revenue up 14% to just over R10 billion which was achieved mainly through the recovery of raw material cost increases and improved trading from African operations. Despite the tough economic conditions, volumes in the main market, South Africa, held steady, but were lower in Europe.

Trading income before abnormal items increased by 3% and was impacted by the late commissioning of the new paper mill at Rosslyn.

Headline earnings per share were 39% lower due to a loss on the fair value of financial instruments compared to a gain and tax provision write-back last year.

Total capital expenditure was R759 million with the major projects being the Rosslyn paper mill and the Angola beverage can factory.

Andrew Marshall who took over as CEO on 1 March 2009 said “Performance in South Africa was in line with last year. Increased trading income was offset by additional costs from the late commissioning of the Rosslyn paper mill. In Africa, trading income improved significantly due mainly to Zambia and Nigeria. European trading income was lower due to higher polymer costs as well as a poorer performance by the Leeds U.K. carton operation.

Going forward, the group expects current difficult economic conditions to continue in all the markets in which we operate. We shall therefore focus on improving or disposing of underperforming operations, the reduction of costs, management of working capital and reduction of capex.”