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WATCH: Constrained consumers put pressure on Nampak
Nampak released its full-year results on Tuesday, showing a 15% rise in earnings and a 3% increase in trading profit.
Its metals unit was the only segment of the business to increase trading profit as its plastics, glass and paper divisions struggled due to reduced demand and tough trading conditions.
Weak economic growth in SA and Angola is weighing on Nampak as cash-strapped consumers look to substitute products or downsize to smaller packaged goods. The packaging group was also hit by a strong rand, which resulted in a 2% decline in revenue. Nampak has declared no dividend as it sticks to its strategy to improve its financial position and conserve cash.
Nampak CEO Andre de Ruyter talks to Business Day TV about the results.
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