Three-month strike ruins Transpaco’s Christmas
The plastics strike that ran from October to December hammered the packaging company's earnings
Paper and plastic packaging manufacturer Transpaco's cost management efforts were not enough to offset a protracted strike which hurt the first half of its 2019 financial year. The company's headline earnings per share fell 33.2% in the six months to December, results showed on Wednesday. An unprecedented and protracted three-month plastic industry strike at the end of 2018 coupled with a depressed consumer environment and stagnant economy, resulted in the decline in performance, CEO Phillip Abelheim said. The group's profits also came under pressure. Notwithstanding a 23.6% increase in Transpaco's revenue, mainly as a result of the acquisition of future packaging, operating profit declined by 26.4%. Abelheim said cost-management strategies were not enough to offset the effects of an unprecedented three month strike by plastics workers. The plastic industry strike began in October, affecting several Transpaco operations during the group's busiest period. "Although not officially end...
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.