Astrapak strategy pays off as interim profits rise
PACKAGING company Astrapak reported a 67% surge in first-half after-tax profit on Thursday as a turnaround plan yielded the desired results. The group’s after-tax profit from continuing operations jumped to R9.87m in the six months to August, from R5.95m a year ago. Profit rose off higher revenue from its core markets in food, personal care and toiletries, and automotive products where Astrapak increased sales volumes and pricing. These categories, which contributed the most to sales, were relatively resistant to poor economic conditions. They also benefited from growing urbanisation and government investment in bulk infrastructure and sanitation, Astrapak said. The group is in the fourth year of its five-year turnaround strategy. It has exited the polyethylene terephthalate plastics market and is also divesting from the flexible film packaging, with assets for sale in businesses valued at R300m. The net value includes residual properties from previously disposed businesses. "We are...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.