• Group sales volumes surged 39% in Q1 FY26, driven largely by strong tobacco-related packaging demand following a record 355 million kg marketing season
  • Group revenue increased 19%, supported by higher corrugated and PET/preforms volumes
  • Performance was uneven, with declines in commercial cartons (–11%), metal packaging (–15%) and Cartons, Labels & Sacks (–10%), amid operational and power challenges

Harare -  Nampak Zimbabwe Limited, the country’s largest packaging firm has recorded a 39% increase in group sales volumes for the first quarter to December 2025, largely driven by a surge in tobacco-related demand and improved activity in plastics packaging according to the latest trading update.

The strong volume performance translated into a 19% rise in group revenue compared to the same period last year.

The strong start to the 2026 financial year reflects a business benefiting from agricultural recovery and relative macroeconomic stability, even as operational bottlenecks and competitive pressures weigh on parts of the portfolio.

The standout contributor to the volume surge was the carryover of late-season tobacco case orders from local merchants. Zimbabwe’s 2025 tobacco marketing season recorded deliveries of 355 million kilograms  a historic high resulting in sustained packaging demand spilling into the new financial year.

“This is mainly due to improved demand driven by the larger tobacco crop from the previous tobacco marketing season,” said Group Managing Director John Van Gend.

Within the Printing and Converting segment, the Hunyani Corrugated Division posted a 73% year-on-year increase in volumes, buoyed by tobacco sector demand. The scale of the growth highlights the close linkage between agricultural output and packaging consumption in Zimbabwe’s manufacturing value chain.

In the Plastics and Metals segment, first-quarter sales volumes were 10% ahead of the prior year, primarily due to improved demand in PET and preforms, partly driven by peak festive season consumption.

However, HDPE demand was marginally lower than in the comparative period. Operations at the Ruwa plant were also affected by persistent power challenges, which led to stop-start production cycles and increased plant breakdowns.

The reliance on generators during outages raised operational costs and limited production hours, although management indicated it is exploring more cost-effective power supply alternatives.

Despite the strong group-wide growth, performance was uneven across business units. Commercial carton volumes declined 11% amid weakened demand and increased instances of customers shifting toward self-manufacturing of packaging  a reflection of intensifying competition and margin sensitivity in downstream industries.

CarnaudMetalbox volumes fell 15% compared to the prior year, as plant breakdowns and raw material supply chain delays disrupted output. Metal packaging volumes were further affected by product rationalisation initiatives aimed at aligning offerings with prevailing market demand  a move that may weigh on short-term volumes but improve long-term efficiency.

Similarly, the Cartons, Labels and Sacks Division recorded a 10% decline in volumes, despite improved demand for tobacco paper wrap. Lower commercial packaging demand contributed to the overall drop in this segment.

The broader operating environment during the quarter remained relatively stable, supported by tight monetary policy measures by the Reserve bank of Zimbabwe that have helped anchor inflation expectations.

Agricultural recovery, underpinned by improved rainfall, and record gold production driven by elevated global prices have injected liquidity into the economy. These developments continue to underpin demand in sectors such as packaging, often regarded as a proxy for economic activity.

However, liquidity constraints remain evident, and sustained macroeconomic stability will require coordinated fiscal and monetary discipline.

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