Nampak Pak up yer troubles
Look, nobody rushes out there to actually buy packaging, but even so, Nampak’s interims here in the Republic were worrying: revenue up just 4% in the six months to March, with trading profit down 20% to R570million, and margins down to 7.9% from a more robust 10.3% last year. According to Nampak, contributions were down from the glass, food and diversified can side of the business, as well as the paper and flexible packaging side, with price reductions in glass and cans being given to customers in exchange for long-term contracts, while consumer demand also played its sorry part. Elsewhere in Africa, different story. A liquid novae, as it were, look it up, look it up. In the far-flung region comprising Angola, Zambia and Kenya, trading profit was up 39% to R197million, with margin up to 15.9%.
Comment: But this was not enough to stall the slide of the share price by a somewhat vertiginous 13% in the days after the old PowerPoint went up.