Harare - ZSE-listed paper and packaging group, Nampak Zimbabwe Limited says there is still more that needs to be done by the authorities to address the macroeconomic challenges faced by businesses.
Since the beginning of the year, the government has been implementing strict measures to address the macro-economic challenges which include a spike in inflation and exchange rate disparities which have been affecting the business community and the economy at large.
Some of the measures that the authorities have come up with include hiking interest rates, suspending lending, and introducing gold coins.
However, these measures have so not been able to completely deal with the macro-economic challenges as the country is still suffering from them and they are still making it difficult for businesses to progressively operate, hence the need for authorities to come up with more strategies to curb the challenges.
However, Nampak commended the government for tightening the currency situation saying that it has made the overall economic situation more positive.
Meanwhile, during the third quarter ended June 2022, the Group’s inflation-adjusted revenue was 4% ahead of the prior year's quarter driven by improved sales volumes and selling price adjustments for the period to date.
Net working capital for the period under review improved mainly due to an increase in debtors while the Group closed the quarter with a cash holding of ZW$989 million.
Sales volumes at the Group’s Hunyani Corrugated division for the third quarter were up 27% while the Cartons, Labels and Sacks business sales volumes were down 35% owing to a slowed demand for the SO bags.
Mega Pak sales volumes for the period under review grew by 12% compared to the prior period.
“Increased demand in the preforms market and large injection moulding were the major contributors, although closures were down compared to the prior year. The improved volumes were driven by the beverage manufacturers in particular,” Nampak said.
The CarnaudMetalbox sales volumes were 8% above the same period last year with metal volumes up 78% as food can and crowns led the recovery, while plastics performance was mixed with higher closure volumes 17% ahead of the previous year.
Going forward, the Group says it remains profitable despite macro-economic challenges affecting businesses and predicts a strong finish to the financial year-end.
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