By Almot Maqolo.
Harare, Zimbabwe (News of the South) – NAMPAK Zimbabwe, formerly Hunyani Holdings Limited, revenue for the six months ended March 31, 2017 went down by 9 percent to $43.095 million from $47.571 million recorded in the same period last year owing to depressed demand in the
plastics and metals segment.
In the period under review, the group’s profit after tax declines from $1.48 million to $838.000.
Albeit the market indicators highlighting that the improved agricultural season is expected to have a positive impact on the economy economic fundamentals remained “difficult” with low disposable
income, increased cash challenges and low foreign exchange reserves.
The company said the restriction on foreign exchange is inhibiting the Group’s ability to settle its foreign liabilities in a timeous manner.
The Group has spent $1.05 million on plant and machinery of which $595.000 relates to the current year.
The balance of $451,000 is carry-over spend from prior year. Earnings before interest, taxes, depreciation and amortisation reduced by 19 percent to $4.07 million.
“The Paper Segment benefited from S.I.64 import restrictions and improved tobacco packaging demand,” Nampak chairman Kumbirai Katsande said in a statement accompanying the company’s financial results.
“The operating profit of $2.25 million (2016: $2.44 million), before reorganisation costs, was 8 percent below the same period last year.”
The group’s printing and converting sector performed well with Hunyani Paper and Packaging reporting an increase in revenue of 27 percent on last year while the Associate – Softex Tissue Products remained profitable but at a reduced level.
However, plastics and metals segment recorded a slump in revenues in which CarnaudMetalbox revenue was 23 percent below prior year.
Due to reduced performing volumes Mega Pak revenue was down 34 percent with operating profit significantly below prior year.
Nampak cash generated from operating activities slides to $4.3 million from $4.6 million of same period last year.
Earnings per share stood at $0.11 cents from $0.20 cents. The company said, “Given the current uncertainty in the trading environment, the Directors have deemed it prudent not to declare an
interim dividend.”
Total assets for the group increased from $106.1 million to $109.7 million. In the outlook, katsande said “The Company will remain focused on cost containment, cash management and maintaining shareholder value.”
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