HARARE, December 3 (The Source) – Packaging group Nampak Zimbabwe recorded a five percent decline in revenue to nearly $96 million in the full-year to September on reduced aggregate domestic demand and lower margins, the company reported on Thursday.
Pre-tax profit stood at $3,8 million while net profit, at $2,3 million, was higher compared to $1,3 million achieved in the 11 months of the previous year.
Nampak Zimbabwe was created following the merger of Hunyani, CarnaudMetalbox and MegaPak last August. South Africa’s Nampak holds a controlling 51.43 percent interest in the merged entity.
Beverages manufacturer Delta Corporation, swapped its 51 percent shareholding in Megapak for a 23 percent stake in the new firm. Agro-processor TSL also exchanged its 40 percent shareholding in Hunyani for a 17 percent stake in Nampak Zimbabwe.
The group incurred manpower restructuring costs of $1,1 million, mainly at Hunyani, and a once-off charge of $358,000 relating to the merger of the three businesses
CarnaudMetalbox achieved a 13 percent increase in revenue on improved can and HDPE bottle sales and returned to profit from a loss position the previous last year. The company managed to expand its product offering, particularly to the dairy sector, while containing costs.
During the year, Hunyani recorded decline in revenue and operating profit by two percent and 59 percent compared to the prior period. A reduction in costs and new machinery is expected to place the business on a solid footing for 2016.
Mega Pak recorded a 13 percent decline in revenue compared to the prior year on depressed volumes for PET and pre-form products, driving operating profit down 43 percent .
The group’s capital expenditure amounted to $8,6 million after the purchase of plant and machinery to increase capacity and product range which it said would give it better footing going forward future.
“Major expenditure was on the pre-form machinery for $2,9 million and the tobacco line at $2,3 million, with the balance spent on various plant and equipment, IT infrastructure and the vehicle fleet,” the company said.
It added that the economic outlook remains challenging, with little short-term relief in sight for the manufacturing industry.