Nampak’s Zimbabwe unit says profitable despite 11pct drop in Q1 earnings

Nampak’s Zimbabwe unit says profitable despite 11pct drop in Q1 earnings

HARARE, February 20 (The Source) – Nampak Zimbabwe says the group remains profitable despite turnover in the first quarter to December 2016 being 11 percent behind on prior year.

According to the results of an annual general meeting held recently, managing director John Van Gend in a trading update said a review of the group structures which had been undertaken resulted in cost reductions.

Nampak Zimbabwe operations include Hunyani, CarnaudMetalBox (CMB) and Mega Pak. Van Gen however cautioned that the second half would be extremely difficulty.

He highlighted the significant challenges facing the economy at the present time, especially sourcing sufficient foreign currency to import raw materials.

“Unless this is alleviated, it is likely that some customer support would have to be curtailed,” he said.

Van Gend said shareholders has been supportive in the sourcing of raw materials but added that this was unlikely to continue unless the build-up of external debt could be paid.

He on other hand said that several capital expenditure projects were being evaluated which demonstrates the group’s commitment to the long-term future of Zimbabwe.

In 2014 Hunyani Holdings merged with CMB and MegaPak and changed name to Nampak Zimbabwe Limited.

Parent company, Nampak, a Johannesburg Stock Exchange-listed company, proposed the move with the idea of consolidating its interests in Zimbabwe.