Nampak shrug off headwinds to record growth across all segments

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  • The final quarter was very challenging with electricity, raw materials and forex shortages
  • However, collective units’ sales volumes grew by 122%
  • Mega Pak to commission new PET machinery in 2022
  • The Group to delay publishing of FY’2021 financial results

Harare – Listed paper and packaging manufacturer, Nampak Zimbabwe Limited performed strongly despite facing an ever increasingly list of challenges.

 During the quarter from July to September of the full year 2021, the Group encountered a busload of challenges, mainly shortages of foreign currency, load shedding that disrupted the manufacturing operations and difficulties in accessing raw materials for production purposes.

“Global supply chain bottlenecks and intensified competition for available plastic and paper raw materials negatively affected the company’s raw material stock holding,” the Group said in a statement accompanying the trading update.

However, despite all this, the latest trading update for the year ended 30 September 2021 shows that the leading packaging materials manufacturer improved performance across all metrics spurred by greater product demand and volumes growth.

 Hunyani Paper and Packaging segment’s sales volumes for the year increased by 23% compared to the prior year due to firm demand for commercial cartons for both Hunyani corrugated and Hunyani Cartons and Labels divisions.

Growth in tobacco cartons also scaled up driven by improved tobacco crop, though it was curtailed by raw-material supply constraints in the fourth quarter.

Sales volumes at Mega Pak surged 68% compared to last year due to strong demand across all product categories. Exports recovered in the regional market due to the relaxation of COVID-19 restrictions.

During the year under review, sales volumes for the CarnaldMetalbox grew by 31% driven by strong volume growth in the HDPE category and a marginal improvement in metals.

Meanwhile, the Group invested in PET machinery at Mega Pak which is set for commissioning in 2022.

The Group will delay the publication of final year-end financial results as the year-end audit work is still going. The delay is due to additional accounting work necessary for regulatory compliance including the requirement for both historical and inflation-adjusted figures.

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