Sunday, 24 November 2013

Investing in Africa was right choice, says Nampak

Nampak CEO Andrew Marshall. Picture: FINANCIAL MAIL
Nampak CEO Andrew Marshall. Picture: FINANCIAL MAIL
PACKAGING group Nampak has reported diluted headline earnings per share of 196.6c for the year ended September, up from 194.4c a year ago.
Group revenue was up 11% to R18.3bn and operating profit from continuing operations increased 8% to R1.9bn.
The final dividend was increased by 10% to 98c per share, from 89c a year ago, making a total of 140c for the year — an increase of 8% on the previous year.
The company said trading income from Africa rose 60% to R506m on revenue growth of 32%.
Its trading margin in the rest of Africa improved to 18.4% from 15.1% in the previous year. Including exports from South Africa, the rest of Africa now accounted for 36% of the group’s total trading profit, it said.

Nampak recently announced the acquisition of the Alucan beverage-can operation in Nigeria for $301m. Board approval has been granted to install a second beverage-can line in Angola for $100m, it said.
The group said these investments would help grow the group’s earnings from Africa. Outside South Africa, it has operations in 12 countries generating revenue of almost R3bn a year.
Nampak has also been granted an option to purchase a rigid plastics company in Nigeria.
"Investing in Africa has proved to be the right strategy for us and we are excited by the many growth opportunities," said CEO Andrew Marshall.
"Apart from the new beverage-can factory in Nigeria and the additional beverage-can line in Angola, we are also exploring a number of other growth prospects.
"South Africa continues to be the major profit contributor to the group and we will also continue to invest in our core businesses where we are the leaders in a number of market segments. This is evidenced by the substantial capital expenditure undertaken during the year."
Mr Marshall is due to retire the end of March 2014. It was announced last month that André de Ruyter had been appointed director and CEO designate from January 1, to take over from Mr Marshall in April next year.
"Nampak has strong positions in the metals, glass and plastics markets in South Africa and there are tremendous growth opportunities in Africa. I remain very bullish on the group’s outlook in both South Africa and Africa," said Mr Marshall.
Source: BDLive

1 comment:

  1. Companies like Nampak are to be encouraged. There are few manufacturers in the Angola, so a Nampak contributes to creating domestic wealth.