How can shareholders put stock in Nampak’s future if management does not?
Management needs to show that it takes Nampak and its shareholders seriously
Somewhere in the last 10 years, packaging group Nampak changed from being a blue chip, proudly South African, best-in-class company, to an entity with limited direction and managers who wouldn't risk their own money in the hands of the group.
It swung to a loss of about R2.4bn in its six months to end-March, from a profit of R653.3m previously. Nampak revenue fell 17% to R6.5bn. Much of the decline in the group's profitability came from failed expansions into Africa with Nampak losing money in Zimbabwe, Nigeria and Angola.