PACKAGING firm Nampak Zimbabwe Limited recorded a 39% increase in group volumes for the first quarter ended December 31, 2025, driven largely by the carryover of late-season tobacco case orders from local merchants.
The strong volume growth underscores the packaging group’s continued reliance on the tobacco value chain and seasonal demand patterns, even as parts of its plastics and metals operations face supply chain constraints, power disruptions and rising competition.
A significant portion of the group’s revenue is derived from packaging for the tobacco industry (paper and corrugated packaging) and the plastics and metals segment (PET preforms and high-density polyethylene closures).
The printing and converting division is led by Hunyani Paper and Packaging (Private) Limited, alongside Hunyani Forests Limited and Hunyani Properties Limited.
The plastics and metals segment comprises Mega Pak Zimbabwe (Private) Limited and CarnaudMetalbox Zimbabwe (Private) Limited.
The group recently disclosed capital expenditure commitments of US$0,56 million, signalling fresh investment in plant and equipment across its paper, plastics and metal packaging units.
“Group volumes for the first quarter to December 2025 were 39% ahead of the prior year, mainly due to the carryover of late-season tobacco case orders from local tobacco merchants. There were also notable improvements in demand in the PET/preforms category, while commercial corrugated volumes were subdued due to weak demand driven by the intensifying competitive landscape,” the company said in a statement accompanying its quarterly report.
Metal volumes declined significantly compared to the prior year, weighed down by delays in the raw material supply chain and product rationalisation to align with market demand. However, the group expects volumes across business units to firm in line with steady packaging demand.
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Group revenue for the quarter was 19% ahead of the comparative period, supported by improved demand linked to a larger tobacco crop.
The 2025/26 tobacco season is projected to deliver a bumper harvest, with more than 162 000 hectares planted — a record for Zimbabwe and 42% above last season.
Under Hunyani Paper and Packaging, sales volumes at the corrugated division surged 73% year-on-year, buoyed by strong tobacco-sector demand.
However, commercial carton volumes fell 11% year-on-year, as some customers shifted to self-manufacturing their packaging.
At Mega Pak, first-quarter sales volumes rose 10%, underpinned by improved PET/preforms demand during the festive peak period. HDPE demand was marginally lower than the comparative period last year.
In Ruwa, persistent power outages resulted in frequent stop-start operations and increased plant breakdowns, affecting efficiency.
“The use of generators during power cuts raises operational costs, thereby limiting production hours. Management actively monitors these expenses, while exploring more cost-effective power supply alternatives.”
At CarnaudMetalbox, first-quarter sales volumes declined 15% year-on-year, with all product categories affected by plant breakdowns.
Despite the operational challenges, the group remains cautiously optimistic about prospects for an improved operating environment.
“The business will maintain its focus on improving operational efficiencies and implementing cost-optimisation strategies to achieve sustainable growth, including thoughtful capital expenditure aimed at enhancing capacity and profitability,” Nampak Zimbabwe said.
