• Nampak projects improvement in HEPS and EPS for its continuing operations in H2 2024
  • HEPS expected to reach 5,500.0 cents compared to HLPS of 11,027.3 cents
  • Total operations also show positive turnaround, with HEPS to reach 3,400.0 cents

Harare- JSE-listed packaging company, Nampak Limited has provided an upbeat outlook for its financial performance in the second half of the 2023 fiscal year.

According to the company's projections, Nampak is poised to overturn the losses it experienced in the first half of 2023.

The change in Headline Earnings per Share (HEPS) and Earnings per Share (EPS) for the group's continuing operations is expected to be between 4,700.0 cents and 5,500.0 cents, compared to a Headline Loss per Share (HLPS) of 11,027.3 cents in the first half of 2023.

EPS are expected to come in between 4,600.0 cents and 5,400.0 cents, compared to a Loss per Share (LPS) of 31,043.7 cents in the prior period.

“Nampak is satisfied that a reasonable degree of certainty exists that the financial results for the period to be reported upon will differ by at least 20% from 31 March 2023 ("the prior period" or "HY23"),” said the group.

As a result, total operations are forecasted to show a significant improvement, with HEPS expected to be between 3,000.0 and 3,400.0 cents, compared to a HLPS of 11,524.1 cents in the first half of 2023.

Additionally, LPS is projected to be between 1,050.0 and 1,250.0 cents, compared to a LPS of 83,882.1 cents in the prior period, representing a 99% increase.

While Nampak's projected turnaround is undoubtedly positive, it will be crucial for the company to maintain this momentum and address the underlying challenges that led to the significant losses in the first half of 2023.

The company's ability to effectively execute its cost reduction strategies, improve working capital management and will be key factors in determining the sustainability of this recovery.

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