Nampak Zim delays publication of results
Packaging firm Nampak Zimbabwe will delay the publishing of its full-year results, due end of this month, until the end of January 2021 to conform to International Accounting Standard (IAS) 29.
IAS 29, Financial Reporting in Hyperinflationary Economies, applies where an entity’s functional currency is that of a hyperinflationary economy.
The standard requires the financial statements of an entity with a functional currency in hyperinflationary economy to be restated for the changes in the general pricing power of the currency.
The results are for the year ended 30 September 2021.
“This is due to the considerable additional work which has been necessary in order to conform with the requirement that the financial statements are adjusted for hyperinflation so as to comply with IAS 29 – Financial Reporting in Hyperinflationary Economies,” parent firm Nampak Limited managing director John van Gend said in a
statement.
“Additionally, the financial statements must be compliant with the requirements of the Johannesburg Stock Exchange under which our controlling shareholder, Nampak Southern Africa Holdings Limited, is listed. It is anticipated that these results will now be published on or before 28 January 2022, until which time an extension has been granted by the Zimbabwe Stock Exchange.”
Also a trading update will be published before mid-February 2022 covering the first quarter period from October to December 2021.
In March at the company’s annual general meeting, Van Gend said foreign currency sourcing remains a challenge. On a monthly basis the firm requires about US$3,5 million to cover for the raw materials.
“For us whilst the auction system has helped we are still restricted on how much we are getting and the timing of that it continues to hamper our daily trading,” he said.
Over the years, the economy has been facing serious foreign currency shortages partly resulting from subdued exports.
The coming in of foreign currency auction system managed to ease the situation a bit.
Nampak yesterday closed 3,65 percent higher at $11, leaving its year to date gains at 381,93 percent-The Herald
