Astrapak past phase one of turnaround strategy - CNBC Africa

Astrapak past phase one of turnaround strategy


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Astrapak is a plastics packaging producer. PHOTO: Getty Images

“The group’s strategy is to focus on core end markets and develop operations of appropriate scale with the right mix of technologies and equipment to supply to internationally benchmarked norms, which are sustainable into the future,” [DATA APK:Astrapak] said.

“Since the conclusion of an extensive review and development of a recovery plan, led by chief executive officer Robin Moore, all stakeholders have been kept informed on the details of the turnaround strategy, implementation timeframe and financial objectives.”

The plastic packaging products manufacturer and distributor, which reported its financial results for the twelve months ending 28 February 2014 on Wednesday, saw three per cent revenue growth from 2.4 billion rand for the year ended 28 February 2013 to 2.5 billion rand in the 2014 year.

Gross profit however showed a 9.3 per cent decline from 566 million rand in the 2013 period to 514 million rand in 2014.

(WATCH VIDEO: Astrapak’s 2013 full year results with CEO Robin Moore)

“Gross profit from continuing operations decreased 9.3 per cent with the main contributors being the increased cost of workings and  loss of profits at East Rand Plastics, a write-off at Barrier Films, headcount reductions and other essential business clean-up costs,” the company said.

Astrapak also reported a loss before taxation of 42 million rand in the 2014 financial year from a profit of 215 million rand in 2013 and a loss per ordinary share of 67.5 cents from earnings of 102.6 cents per share in 2013.

“During 2014, Astrapak instituted big changes and the results reflect this. The group is now focused on delivering superior quality products on time and at the right price to customers,” it said.

“An improved financial result is budgeted for in 2015, the final year of the turnaround phase, and the group is on track to meet its medium term return aspirations. Astrapak is sincerely appreciative of the support it is receiving from customers, suppliers and its key shareholders.”