INTERIM RESULTS
Poor sales at plastics unit weigh on Mpact
Poor sales volumes look set to pull down Mpact’s plastics business during the rest of the financial year, counteracting the improved fortunes of its paper division, says CEO Bruce Strong. A combination of backward integration by customers and the effect of the sugar tax would keep the plastics business on the back foot for the rest of the year, the firm said on Wednesday. Mpact’s plastics business manufactures a range of packaging products for the food, beverage, personal care, agricultural and retail markets. The division’s poor showing stood out in Mpact’s results for the six months to the end of June, reporting a decline of 5.3% in revenue to R1.1bn and an operating loss of R30m. An improved performance by its paper business, largely thanks to the impact of capital investments, led to revenue from that division increasing 7.4% to R3.7bn. "In particular the Felixton paper mill, which was upgraded last year, has progressed well. Unfortunately the gains made in paper were offset by ...
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