• The group suffered 300% monetary loss from ZWL1 bn to ZWL4 bn
  • Expenses across all facets grew by over 25%
  • However, growth was registered across all segments

Harare- Nampak Limited Zimbabwe, a metal can manufacturing company listed on the Zimbabwe Stock Exchange (ZSE) registered a 1% decrease in profit after tax to ZWL2.61 billion for the year ended 30 September 2022 from ZWL2.3 billion during the comparative prior year. The group registered a loss in 2019 and 2020 hence, a profit decline ahead of a looming global recession is a major concern for the Group.

However, profit declined despite the Group’s revenue growing by 43%, which was the highest revenue outturn in 4 years. In 2021, the group’s revenue grew by 245% and by 1% in 2020.

The Group incurred record production costs of up to ZWL41 billion reducing the trading income to ZWL10.3 billion.

Production and distribution costs grew by over 30%, from eating up circa ZWL42 billion of revenue.

Monetary loss widened by 300% during the reporting period, from ZWL1 billion in 2021 to ZWL4 billion in 2022 due to rapid depreciation of the local currency.

Between September 2021 and September 2022, the Zimbabwe dollar has depreciated by 86% on the Foreign Currency Auction Market while deficits have more than doubled on the parallel market rate causing uneven inflationary pressures.

The Zimbabwe dollar depreciation has been caused mainly by parallel market activities due to the scarcity of the greenback and reactionary monetary policies which are dragging the economy 6 metres deep and an extra feet under.

A combination of reactionary policies and lack of confidence in a net importing nation has caused record losses to companies exacerbated by a waning Zimbabwe dollar.

During the period under review courtesy of reactionary 200% repo rates hike, the group’s tax expenses doubled, from ZWL3 billion in 2021 to ZWL6 billion in 2022 narrowing the Group’s profit after tax from ZWL 2.63 billion to ZWL2.61 billion.

Segment performance

Due to a tight monetary policy and aggressive fiscal policies, the group recorded milled growths across all categories although other factors, like disruption in global supply chains, record fuel price hikes and inflated inflation can not be overlooked.

For the printing and converting segment, Hunyani paper and packaging sales volumes for the full year improved by 11% due to firm demand for tobacco cartons throughout the year, on the back of an improved tobacco crop and regional exports.

“Demand was somewhat curtailed by raw material supply constraints,” Group’s Managing Director Van Gend said in a statement accompanying the full year financials.

However, demand at Cartons and Labels Division was subdued.

On the plastics and metal segment, Mega Pak’s sales volumes increased by 7,4% necessitated by strong demand across all product categories and improved raw material availability. Exports recovered in the regional markets compared to the prior year while CarnaudMetalBox sales volumes for the full year grew by 9,1% compared to the prior year driven by strong growth in the closures and metals categories despite a breather in HDPE volumes.

 As acost-cutting measures, Nampak employed 467 permanent employees compared with 533 the previous year with industrial relations remaining productive.

“We are continuously reviewing our manpower structures to ensure they are in line with business requirements.”

“The Group continues with its training programmes aimed at developing and retaining skills across the board,” Gend said.


“The year ahead may bring some economic head winds, but I believe that the continual focus on cost control and margin preservation has positioned the Group well to meet these challenges,” Gend said.

From an economic point of view, 2023 might be very tougher compared to 2022 given a looming global recession and given that the country is holding general elections this year.

There is a risk of high liquidity of the Zimbabwe dollar in the market as government will be convinced to print more money to fund suppliers as part of campaign projects. This, will result in a few United States dollars being chased by a sea of Zimbabwe dollars risking a hyperinflation period or complete demise of the Zimbabwe dollar coupled with exchange rate distortions.