Categories: Stories

Nampak Zimbabwe operating profit down 68 percent

Nampak Zimbabwe’s operating profit dropped by 68 percent to $1.2 million for the six months to March 31 due to squeezed margins, external competition and low volumes in its Megapak segment, the company said last week.

Revenue was five percent lower at  $45.7 million due to low domestic demand and market shrinkage.

“This reflects the drop in aggregate domestic demand, market shrinkage and changes in product mix,” said the company in a statement accompanying its financial results.

Megapak’s revenue was 13 percent lower due to depressed volumes while that of Hunyani Paper and Packaging was five percent down.

CaurnaudMetalbox’s revenue was up by 13 percent due to improved food can and bottle sales.

“The group has committed $6.2 million for the purchase of plant and machinery to increase capacity and product development,” said the company.

Nampak Zimbabwe is a the local unit of South Africa’s packaging giant, Nampak Holdings, which took over Hunyani last year and merged it with its local interests CarnaudMetalbox and MegaPak.- The Source

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Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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