- Only the MegaPak segment saw growth, with a 10.2% increase in sales volumes, driven by demand for PET preforms and HDPE closures
- The Hunyani Paper and Packaging division recorded an 8.4% decline in sales due to reduced tobacco carton demand linked to drought conditions
- Overall, NamPak achieved a profit of $4.96 million amid operational challenges
Harare- NamPak Zimbabwe Limited experienced a challenging fiscal year in 2024, with only one of its operating units recording sales growth amidst a difficult economic and operational environment.
The company’s overall performance was significantly impacted by reduced demand across key segments, largely due to external factors such as the El Niño-induced drought, which adversely affected agricultural output and, consequently, the demand for packaging products.
The Hunyani Paper and Packaging Division saw an 8.4% contraction in sales volumes due to reduced demand for tobacco cartons, a direct result of the drought’s impact on tobacco crops. Zimbabwe recorded one of its worst droughts in over 30 years.
Similarly, the Cartons and Labels Division experienced a 1.1% decline in sales volumes, primarily driven by lower tobacco production, though this was partially offset by gains in commercial categories. The CarnaudMetalBox segment also faced challenges, with sales volumes decreasing by 0.57%, reflecting the broader difficulties encountered by the company during the year.
The only bright spot for NamPak in FY2024 was the MegaPak segment, which focuses on plastics and metals.
This unit recorded a 10.2% increase in sales volumes, driven by higher demand for PET preforms and HDPE closures.
However, even this segment faced operational constraints due to power outages at the Ruwa facility, which hampered production efficiency and limited the segment’s full potential. These power outages were part of a broader national challenge, as Zimbabwe experienced one of its worst years in terms of electricity generation.
The El Niño-induced drought severely curtailed power generation at the Kariba Power Station, which produced less than 100 MW for most of the year. Although power generation improved slightly in 2025, peaking at 125 MW, the inconsistent supply continued to disrupt industrial operations, including those of NamPak.
Despite these challenges, NamPak managed to achieve a net profit of US$4.96 million for the year. The company generated US$101.28 million in revenue, supported by US$16.38 million in trading income and US$14.97 million in operating profit.
However, the company’s performance in FY2024 reflects the significant impact of external factors such as climate change and infrastructure challenges on industrial operations. Moving forward, NamPak will need to address operational inefficiencies and invest in alternative energy solutions to mitigate the impact of power shortages.
The recovery of the agricultural sector, particularly tobacco production, will be crucial for the rebound of the packaging divisions in the coming year.
Looking ahead, NamPak’s ability to navigate these challenges will depend on its strategic response to both external and internal pressures. This includes diversifying its product offerings, enhancing energy resilience, and adapting to changing market conditions.
While MegaPak’s growth is a positive sign, the company must focus on strengthening its other segments and improving overall operational efficiency to ensure sustained profitability in the face of ongoing uncertainties. By addressing these issues, NamPak can position itself for a more stable and prosperous outlook.
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