INTERIM RESULTS
Nampak builds base in preparation for higher African growth
By not declaring a dividend in the six months to March 2018, Nampak is hedging its bets amid improving business confidence and higher economic growth forecasts — both for SA and the continent. No dividend was declared for the year to September 2017 in line with a decision taken in 2016 to suspend dividends, to improve the group’s financial position and conserve cash. Despite much improved gearing to 39% and R1.3bn in cash remittances from Nigeria, Angola and Zimbabwe in the period, markets remain tough for Africa’s biggest diversified packaging maker. CEO Andre de Ruyter says R3.8bn remains frozen in these countries, after Nigeria’s and Angola’s economies were hammered by a collapse in world oil prices. This had led to foreign exchange shortages. Meanwhile, Zimbabwe has been beset by years of political and economic turmoil.
That said, plastics demand in Zimbabwe has boosted Nampak’s profits and market share in that country, along with new customers and new product sales. It is...
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.