Paper and packaging concern Nampak Zimbabwe saw its profit after tax growing by 755% to $1,48 million in the six months to March 31, 2016 driven by cost containment measures and efficiency at its plants.
BY TATIRA ZWINOIRA
In the prior period last year, profit after tax was $173 000.
Revenue was up 4% to $47,57 million from $45,70 million during the same period in 2015.
“Group revenue for the six months is 4% ahead of the prior period. This is a result of strong demand in the beverages, dairy and oil sectors due to the hot weather and a carry-over from the 2015 tobacco crop in 2016. However, this was offset by the weaker exports and price reductions due to the weakening of regional currencies,” Nampak said.
It said operating profit before interest and tax at $2,4 million was up from prior period, driven by cost containment and the investment of $8,6 million in new assets, resulting in improved productivity and efficiencies.
“This represents a margin of 3,1% versus 0,4% in the prior period,” it said.
Earnings per share jumped to $0,20 from $0,02 recorded during the same period last recorded last year.
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During the period under review, the group spent $2,7 million on a plant and machinery to enhance its capacity.
Total cash flows from the group’s operations were down to $4,63 million from a previous of $5 million.
Nampak’s units — Mega Pak, Hunyani Paper & Packaging and CarnaudMetalBox — recorded contrasting fortunes during the period under review.
Mega Pak’s revenue was up 14% over the same period last year due to improved preform volumes and strong demand from key customers.
Hunyani Paper & Packaging revenue was down on the prior period by 7% as a result of reduced exports. Despite the revenue fall, operating profit was up on the prior period as a result of overheads savings and the benefits of the staff rationalisation in the prior year, Nampak said.
Nampak’s subsidiary, Carnaud MetalBox Zimbabwe, also registered a 7% uptick over the previous timeframe in the group’s financial results, on the back of strong sales from high-density polyethylene bottles and closures.
