TRADING UPDATE
Zimbabwe plant to hit Mpact earnings
The closure of Mpact’s plastics manufacturing facility in Zimbabwe, which will cost the company about R40m, is expected to contribute to considerably lower headline earnings for the packaging business when it reports its results for the 2016 financial year. Mpact was expecting headline earnings to come in "at least" 30% or lower for the year to December 2016, placing it at about at least 109.7c a share, it said in a trading statement on Monday. Earnings were expected at 110.1c a share. The group, spun out of industrials group Mondi in 2011, is unable to provide a more precise guidance on these numbers, however, and has committed to publish a further trading statement in February, closer to the publication of its results. Mpact’s closure of the Zimbabwe plant, which it has already initiated, is expected to cost it 6.47% of the entire group’s R617.8m after-tax profit for the 2015 year.
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