Transpaco ups dividend as cost-containment efforts bear fruit
The plastics and packaging company, which has increased its payout, says expenses have been well-managed
Plastics and packaging company Transpaco on Monday upped its interim dividend by double digits to 33c, saying it had kept its costs under control.
Profit for the six months to end-December rose 13.6% to about R40.2m, with headline earnings per share (HEPS) rising 18% to 161.1c.
The group reported that its plastics products division accounted for significant growth, while its paper and board division performed below expectations.
Transpaco manufactures and distributes plastic and paper packaging products for the retail, industrial, agriculture, mining, pharmaceutical and automotive sectors.
The group had said in its integrated annual report for 2019 it was seeking to reduce costs through controlling power use and negotiating with raw materials suppliers, among other means.
In afternoon trade on Monday, Transpaco’s share price was unchanged at R13.72, having fallen 29.64% over the past 12 months.