PACKAGING firm Nampak Zimbabwe Limited has posted a 57,25% increase in profit after tax, reaching US$7,81 million for the financial year ended September 30, 2025, driven by a 66% drop in tax expenses.
Profit after tax rose from US$4,96 million last year, despite revenue falling to US$ 93,15 million from US$ 101,28 million in 2024 as group volumes dipped.
The company reported a profit before tax of US$ 11,21 million, down from US$ 14,98 million in 2024, but benefited from lower net losses on monetary items and reduced tax charges.
Earnings per share jumped 56% to 1,03 US cents, driven by the non-recurrence of the net loss on monetary items of US$6,07 million in the prior year and a lower tax charge.
Under its Hunyani Paper and Packaging subsidiary, the sales volumes for the full year decreased by 3% compared to the prior year due to reduced demand for commercial cartons.
“Demand for tobacco packaging was boosted by the crop size in 2025. There were also gains in the horticulture sector,” Nampak said.
At Mega Pak, the full-year sales volumes decreased by 9% versus the prior year on the back of heightened competition, which will be mitigated by cost and efficiency focus.
At Carnaud MetalBox, sales volumes for the full year were on par with the prior year.
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“The past year has been challenging for Nampak Zimbabwe as the competitive landscape intensified with new entrants across all segments of our business. The market demand for packaging remained stable during the year,” Nampak said.
The company said management continued to focus on cost containment and increasing operational efficiencies.
“New opportunities to improve product offerings are being pursued. Group volumes for the full year decreased by 5% compared to the prior year,” it said.
“The decrease was due to the market shift in the commercial category, as some customers invested in producing their packaging requirements in-house, while competitive pressures in the preforms category saw volumes trending below the prior year. However, an improved tobacco crop and increased demand in the HDPE (High-Density Polyethylene) category narrowed the volume gap in the year.”
Nampak Zimbabwe Limited managing director John van Gend said the business remained competitive despite the pressures.
“Management will continue to focus on the business model that will be able to withstand future volume fluctuations while focusing on capital allocation strategies to increase capacity and take advantage of increasing demand,” he said.
Capital expenditure amounted to US$ 3,62 million during the period under review, up from last year’s US$3,50 million, for projects to increase capacity and improve the plant services.
“There are some significant capital projects currently being reviewed by management that aim to increase our capacity on some lines while also maintaining our asset base.”
The firm recorded US$2,85 for every dollar of short-term debt, showing that the packaging firm was highly liquid to fund its capital projects in the current year ending September 30, 2026.
This was due to better cash generation during the period, leading to total assets worth US$50,22 million, an increase from US$44,55 million in the year prior.
“The group remains ungeared with cash balances of US$6,76 million at year end (2024:US$1,86 million),” Nampak Zimbabwe said.
