Nampak divisions’ half year volumes mixed
Listed packaging materials manufacturer, Nampak Zimbabwe, saw its divisions post mixed volumes numbers in the half year to March 31, 2023.
Two of the company’s three divisions posted negative volume growth due to power cuts and faults as well as working capital problems.
Hunyani Paper and Packaging sales volumes for the period were 10 percent up in the half year to March 31, 2023 compared to the same period last year.
“The major contributor to this increase was the tobacco sector, which was up 25 percent, due to additional volume demand from the region. Commercial volumes were 8 percent down on the prior year due to reduced supply of raw materials,” group managing director John Van Gend said in a statement accompanying results.
In the period under review, MegaPak sales volumes came in 9 percent lower than prior year due to incessant power cuts in Ruwa. As a result, an additional generator was procured to reduce the negative effects of the power cuts.
CarnaudMetalBox (CMB) sales volumes for the half year were marginally down compared to the same period in 2022.
“In plastics, high density polythene was 5 percent ahead of the prior year due to increased demand. Metals volumes were significantly down due to raw material shortages, particularly in the first quarter. Closures volumes were significantly up on the prior year due to improved demand,” the managing director added.
Megapak plant in Ruwa as well as a ZESA fault that affected Nampak’s CMB plant for a period of about eight weeks, were major factors leading to reduction of volumes in these divisions.
Cumulatively, half year volumes for the group marginally increased by 2 percent despite the severe power cuts experienced at some plants.
“Although foreign currency inflows improved over the period, the tight liquidity conditions in the economy affected our ability to replenish raw materials on time,” Van Gend said.
The group’s revenue for the period under review was $44,8 billion, in hyper-inflationary terms which is 56 percent more than the revenue recorded in the same period in 2022.
According to Van Gend; “Trading margins were unchanged compared to the prior year as Nampak sought to remain competitive. The trading profit of $8,3 billion was 63 percent ahead of prior year.”
Nampak’s units continued to trade profitably with the company saying treasury and cash flow management remained the key focus area.
“Net working capital for the half year increased mainly due to increases in foreign currency denominated trade receivables and inventory as the group sought to preserve value,” Van Gend added.
The board declared an interim dividend of $100.43 cents per share, which was paid on March 10, 2023.-ebusinessweekly
