Nampak's turnaround starting to pay off as interim profit soars to R3 billion

IN A STRIKING demonstration of fiscal resilience, South Africa's metals packaging group Nampak has recorded a remarkable turnaround in its financial fortunes for the six months ending March 31.

- EDWARD WEST

The company reported a profit of R3 billion, a stark contrast to a loss of R135 million reported during the same period last year. This turnaround has not only bolstered its's position, but also highlighted the impact of strategic management amid a tightening consumer environment.

CEO Phildon Roux shared insights on the results, noting that earnings a share surged to 35 842.2 cents — a robust recovery from a loss of 1 123.5 cents in the first half of the previous year.

“The first half yielded a rewarding financial outcome,” Roux stated, attributing the momentum to a concentrated focus on margin management, cost containment, and efficiency enhancements. This approach resulted in a 22% increase in trading profit alongside a 7% rise in operating profit.

The company's commitment to reducing debt was evidenced by the sale of Bevcan Nigeria, which netted R1.3bn and marked a pivotal milestone in their deleveraging strategy. This, combined with strong operating cash flow and lower interest costs, facilitated improved financial metrics despite an uptick in net working capital investments.