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Article by Nampak 27 May 2011
Nampak boosts profits and margins
Nampak today released its results for the six months ended 31 March 2011.
Headline earnings per share from continuing operations were 28% higher as a result of the improvement in operating profit and a reduction in finance costs. Net debt came down further with net gearing improving to 23% from 33% in September last year.
The dividend has been increased by 36% to 34 cents per share.
Operating profit from continuing operations increased by 16% and the trading margin improved to 10.7% from 9.5% last year. This was mainly due to better results from the flexible, diversified canning and African operations, as well as the turnaround or sale of underperforming businesses.
CEO Andrew Marshall said, “The strategy that has been in place for the past two years continues to bear fruit. We have now sold or closed most of the underperforming businesses and have focused on growing our core profitable operations. We invested a further R348 million during the last six months in those businesses where we have sustainable competitive advantages.
The Angolan beverage can factory commenced production in April and is expected to contribute to our growing revenues from the rest of Africa where we already have operations in twelve countries.
The trading margin and investment returns have improved significantly and the balance sheet is now in a much healthier position. Net debt in the company has been reduced to R1.2 billion from R3.4 billion two years ago.
Despite moderate consumer demand in South Africa I expect the benefits of the strategy to continue contributing to an overall improvement in performance albeit at a lower rate than that achieved in the first six months”
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Headline earnings per share from continuing operations were 28% higher as a result of the improvement in operating profit and a reduction in finance costs. Net debt came down further with net gearing improving to 23% from 33% in September last year.
The dividend has been increased by 36% to 34 cents per share.
Operating profit from continuing operations increased by 16% and the trading margin improved to 10.7% from 9.5% last year. This was mainly due to better results from the flexible, diversified canning and African operations, as well as the turnaround or sale of underperforming businesses.
CEO Andrew Marshall said, “The strategy that has been in place for the past two years continues to bear fruit. We have now sold or closed most of the underperforming businesses and have focused on growing our core profitable operations. We invested a further R348 million during the last six months in those businesses where we have sustainable competitive advantages.
The Angolan beverage can factory commenced production in April and is expected to contribute to our growing revenues from the rest of Africa where we already have operations in twelve countries.
The trading margin and investment returns have improved significantly and the balance sheet is now in a much healthier position. Net debt in the company has been reduced to R1.2 billion from R3.4 billion two years ago.
Despite moderate consumer demand in South Africa I expect the benefits of the strategy to continue contributing to an overall improvement in performance albeit at a lower rate than that achieved in the first six months”
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