Mpact HY revenue up 13.2% to 4 bln

The group’s revenue surged to four billion rand in 2014 compared to 3.5 billion for the same comparable period in 2013.

The increase has been attributed mainly to higher selling prices and a favourable sales mix.

[DATA MPT:Mpact Limited]’s earnings per share also rose by 19.2 per cent to 91 cents in 2014 from 77 cents in the same comparable period in 2013.

(READ MORE: Mpact’s 2013 FY results reflect improved export competitiveness)

The revenue for the group’s paper business rose by 14.2 per cent to 2.9 billion rand with external sales volume growth of 2.1 per cent.

Mpact’s revenue for its plastics business increased by 10.4 per cent to 1.1 billion rand due to higher average selling prices.

The packaging and recycling company group says the company’s challenge in the second half will be recovering cost inflation while economic growth remains modest.

“A significant challenge for the second half of 2014 will be to recover cost inflation while economic growth remains modest,” read the company statement.

“Despite this Mpact remains confident in its strategy, well established market positions and ability to generate shareholder returns.”

(WATCH VIDEO: Bruce Strong – CEO of packaging & recycling company, Mpact)

Mpact noted that it will continue identifying investment opportunities that offer the prospect of enhanced shareholder returns while meeting other strategic objectives.

The group says its operations were affected by Numsa’s month long strike but Mpact is confident to recoup some of the losses.

“The direct financial cost of the four-week-long industry-wide strike that affected six plastics converting operations during July is estimated to be 20 million rand, which may be partly recovered during the balance of the year.”