MARC HASENFUSS: No frills, plenty spills and some thrills
Bullion may soar and crypto may crumble, but running a tight ship will always get you through the storm
The only thing leaner (and meaner) than me — after subsisting on yoghurt, smoothies, chocolate milk and soup for more than a fortnight as my taste buds still flounder — is the Transpaco business model. Much like with packaging sector compatriot Bowler Metcalf, the usual corporate frills that adorn JSE-listed counters are refreshingly scant. The company is built to withstand tough times.
That said, Transpaco’s operating margin was squeezed to 8.2% (from 9.2% previously) in the six months to end-December. The paper and board segment crumpled a bit, its margin down to 5.7%, with the slightly larger (by revenue) plastics segment still comfortably bubble-wrapped at 8.4%. They address completely different niches in the plastics packaging sector, but it is worth noting that Bowler Metcalf managed a margin of 12.3% at its core plastics segment in its interim period to end-December. There may be an interesting line of inquiry here for an investment banker who sees value in cre...
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