Nampak falls on trading update
Share price falls 6.82% after group forecasts rise in headline earnings but a decline in earnings for the year
Nampak delivered a mixed trading outlook for the year ended September 2017, saying it expects trading profit to be marginally up, despite a significant jump seen in headline earnings per share. The announcement pushed Nampak’s share down 6.82% to R16.53 per share in late afternoon trade on Wednesday, from a high of about R46 in late 2014. The group’s trading profit is expected to increase 1%-4% to R1.935bn-R1.995bn compared with R1.905bn in 2016. Headline earnings per share is expected to increase 11%-17% compared with 107.6c per share in the previous year. But Africa’s biggest packaging group said impairments have doubled from 2016. While this has been balanced by a substantial fall in foreign exchange losses, earnings per share is likely to fall between 84% and 88% to between 30.5c per share and 40.7c a share compared with 254.5c per share in 2016. “This is mainly due to a one-off capital profit of R1.3bn that arose in the prior year related to the disposal of certain properties t...
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