Nampak saved by its African operations - CNBC Africa

Nampak saved by its African operations

Earnings

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Twinsaver, a brand under Nampak Ltd. PHOTO: Twinsaver

Africa’s largest packaging manufacturer [DATA NPK:Nampak Limited] reported a 12 per cent increase in total revenue, with their South African division growing at nine per cent while their other African operations rose by 24 per cent.

Their United Kingdom operations also grew significantly by 22 per cent.

Headline earnings per share from continuing operations rose by nine per cent to 121.4 cents while group trading profit increased by 10 per cent.

An interim gross dividend was also declared at 46 cents per share, a 10 per cent from the prior period.

The group’s acquisition of Nigerian can manufacturer, Alucan Packaging Limited, in February 2014 also contributed positively to their trading results for the period with Nampak investing 3.3 billion rand in the newly acquired company.

(READ MORE: S.Africa's Nampak buys Nigerian can manufacturer)

One billion rand was also invested in other capital projects, specifically in their South African beverage can and glass businesses.

(WATCH VIDEO: Insight into Nampak's investment case)

Group operating profit however declined by 2 per cent due to a once-off capital profit of 111 million rand.

In their South African business, trading profit increased marginally however there was an improved performance in their metal and glass segments while their paper and flexible and tissue segments remained at similar levels to their 2013 figures.

(READ MORE: Nampak sees impressive returns)

On the other hand, their other African operations’ trading profit rose by 23 per cent due to a solid performance by their Angolan division and their metals and paper operations in Nigeria. Malawi also posted a profit in their tobacco box sales. Zambia however was negatively affected b a shit to alternative forms of packaging.

(READ MORE: Nampak sees big opportunities in Nigeria)

In the UK, trading profit declined by 14 per cent in to 3.6 million pounds from 4.2 million pounds in 2013 as a result of higher pension fund costs. However, due to the weaker exchange rate, trading profit in rand improved by 18 per cent.

Nampak expects trading conditions in South Africa to remain challenging, however the rest of Africa is expected to continue generating good results.



 

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