Nampak today released its results for the year ended 30 September 2011.

Headline earnings per share from continuing operations were 21% higher as a result of a 22% improvement in operating profit and a reduction in finance costs. Net gearing improved to 10% from 32% in September last year.

The dividend/distribution has been increased by 30% to 108 cents per share for the year.

Operating profit from continuing operations increased by 22% and the trading margin improved to 9.8% from 9.1% last year. This was mainly due to better results from the diversified canning, corrugated and flexible divisions as well as the sale of underperforming businesses.

CEO Andrew Marshall said, “The strategy of focusing on our core businesses and fixing, closing or disposing of those businesses which were underperforming and detracting from our overall performance continued to contribute to an improvement in our results for the year. We invested a further R676 million in those businesses where we have sustainable competitive advantages.

We have also recently reached agreement to acquire the remaining 50% of the glass business that we do not already own for approximately R900 million and we will be looking to grow our glass operations in South Africa and the rest of Africa.

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 R582 million compared to R3.4 billion two years ago.

The group is now more focused and our stronger balance sheet allows us to actively pursue a number of exciting new growth opportunities in South Africa and the rest of Africa”.

Contact:
Nampak Investor Relations
Graham Hayward
Tel: 011 719 6320
Cell: 082 800 7863
Graham.hayward@za.nampak.com
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