- NamPak Zimbabwe is banking on strong demand across its packaging operations to navigate a challenging trading environment
- The Paper operation is expected to benefit from increased tobacco volumes
- Overall revenue fell 12%, mainly due to earlier losses in plastics and commercial cartons, and reduced tobacco carryover from the drought-impacted 2024 season
Harare - NamPak Zimbabwe Limited, a leading packaging firm listed on the Zimbabwe Stock Exchange (ZSE) is banking on Zimbabwe’s record-breaking 2025 tobacco marketing season to steady operations in a challenging trading climate, according to its latest trading update for the nine months ended June 2025.
This year Zimbabwe shattered a tobacco production record that had stood since 1975, when output reached a then 260 million kilograms.
The 2025 marketing season, which closed on August 7, saw farmers deliver an unprecedented 352.7 million kilograms of tobacco, surpassing the previous record of 296 million kilograms set in 2023.
‘’The Paper operation is expected to benefit from the increased volumes from the record-breaking tobacco marketing season,’’ Group Managing Director John van Gend said.
In the third quarter , the Cartons, Labels & Sacks Division led the gains, recording a 34% increase in tobacco paper wrap sales compared to the same period last year while commercial packaging volumes rose 17%, supported by demand from the horticultural sector.
The Hunyani Corrugated Division maintained volumes in line with last year, underpinned by steady tobacco sector demand despite a slower start to deliveries.
However, the plastics segment experienced a 14% drop in sales volumes, weighed down by intensified competition and severe power cuts at the Ruwa plant, which forced reliance on costly generators.
In the metals business, overall volumes were down year-on-year due to product rationalisation, although the quarter saw an 8% increase in sales volumes, with HDPE volumes surging 47% on robust market demand.
As a result, overall volumes for the quarter were 3% lower than the previous year, narrowing the year-to-date decline for the nine months to 13% below the same period last year.
This led to a revenue decline of 12%, driven by earlier losses in plastics and commercial cartons, as well as reduced tobacco carryover volumes from the drought-impacted 2024 season.
Looking ahead, the company anticipates recovery in the last quarter buoyed by seasonal demand in the beverages sector and continued strength in agriculture-driven packaging orders.
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