Group revenue increased by 7% to R9.4 billion ($1 billion) and trading profit increased by 6% to just under R1 billion ($102 million) with the trading margin holding steady at 10.1%.
Group operating profit increased by 13% and was enhanced by a gain on the revaluation of the acquisition of the Elopak joint venture and a gain on the reconsolidation of the Zimbabwean entities.
Earnings per share increased by 19% and headline earnings per share increased by 3%.The dividend was increased by 4% to 42 cents per share.
CEO Andrew Marshall said, “Trading profits in the rest of Africa continue to grow on the back of the investments we made and these together with other exciting opportunities that we are currently pursuing will contribute to our growing presence on the African continent. We have recently successfully raised $175 million in the United States Private Placement market at extremely competitive rates and the proceeds will be used to fund our African expansion strategy.
In South Africa there was a marked downturn in consumer spending in the second quarter resulting in reduced demand for most types of packaging.
The paper businesses were most affected by the downturn in consumer spending as folding cartons and flexible packaging are used for many consumer goods. This also impacted on sales of the associated corrugated boxes.
The group return on equity increased to 24% from 20% at the end of September 2012.”
On the overall outlook for the Group, Andrew Marshall stated, “our operations in the rest of Africa are expected to continue generating good results and the United Kingdom business is expected to improve on last year. However the downturn in consumer spending in South Africa is expected to continue. Overall though, we believe the Group is strategically well positioned for ongoing growth, especially in Africa”
Nampak is Africa's largest packaging organization which has 81 operations in South Africa, 19 operations in 10 other countries in Africa.
