Nampak’s full-year earnings reel as forex losses bite
Packaging group Nampak on Monday reported a 48% drop in first-half headline earnings per share (HEPS), affected mainly by foreign exchange losses. HEPS, which excludes capital profit and impairments, slid to 107.6c in the year to September, which was in the middle range its recent trading guidance. The company suffered R681m in foreign-exchange losses, thanks to the devaluation of Angolan kwanza and Nigerian naira, which accounted for the greater proportion of the losses. The economies of the two countries are reeling from lower oil prices which, in turn, have affected their currencies. Nampak, which makes metal cans, glass bottles and a range of cardboard boxes, said it managed to limit potential further forex losses by hedging 50% of its R2bn cash holdings in these two countries. Total sales in the review period increased 11% to R19.1bn and group trading profit improved 4% to R1.9bn. The improved performance was due to the turnaround at the glass division, good trading in Nigeria ...
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