NAMPAK, an increasingly pan-African manufacturer of nonperishable packaging for beverages and food, continues to “navigate volatile macroeconomic conditions prevailing in a number of our key markets” in 2015.
In a group strategy and progress update for analysts on Thursday, CEO André de Ruyter and other executives highlighted key strategies for each of the company’s divisions.
“In South Africa we have experienced operational difficulties at our glass and Bevcan Springs factories that we are addressing through targeted operational excellence initiatives,” Mr de Ruyter said.
But he said the group had made “solid progress on stabilising and improving the performance at glass” and also in addressing spoilage at its Bevcan Springs site.
This was expected to strongly boost operational results in financial year 2016 after the group took “decisive” steps to strengthen leadership, refocus its portfolio of products, improve operational efficiencies, and tighten cost and capex controls.
Mr de Ruyter said the group’s strategy implementation was at an advanced stage and benefits were expected to flow through to the bottom line in 2016. Nampak also expected the rest of Africa to generate 50% of trading profit by 2020.
In the group’s half-year results to March, broker Imara SP Reid — since renamed Momentum SP Reid Securities — had cited “local disappointment” for Nampak as opposed to “rest of Africa growth”.
Group operating profit fell 9.2% in the most recent reporting period. This was due to a tough South African trading environment and a poor performance by the glass segment. Headline earnings per share from continuing operations fell 8%.
Nampak had sold its corrugated and tissue division for R1.6bn, effective April 1. It also planned to sell the flexible and recycling divisions.
But trading profit from the rest of Africa was now 38% of group trading profit, rising from 27% last year. But rest of Africa margins fell mainly on local currency devaluations and the inclusion of lower margin business in Zimbabwe.
By Mark Allix
Source: BDLive
We are closing the chapter of the Chemicals Import Export Headquarters, and opening a new chapter under the name of Qemetica – a chemical group driving many industries on all continents. Therefore, the change of name is also accompanied by the adoption of the key goals of the business strategy for the next 6 years. – says Kamil Majczak, President of the Management Board.
In its efforts to advance chemical recycling, Neste has successfully conducted its first processing trial run with a new challenging raw material, liquefied discarded tires. In the processing run, Neste produced high-quality raw material for new plastics and chemicals.
Sika is opening a state-of-the-art facility in Lima, Peru, to produce synthetic macro fibers, and expanding the rollout of a product range with great growth potential in Latin America. With this innovative technology, Sika is further strengthening its position as a leading supplier to the mining industry and a strong partner for infrastructure projects.
