HARARE – Zimbabwe Stock Exchange-listed packaging company Nampak Zimbabwe (Nampak) profit for the year up to September jumped 89, 3 percent to $14,5 million from $7,6 million in the prior period despite difficulties in access to foreign exchange.
Buoyed by exceptional performance from its operating units Mega Pak, Softex tissue products, Hunyani and CamaudMetalbox, Nampak’s revenue steadily rose to $116, 8 million from $96,3 million which is a 21, 3 percent growth in income.
Nampak attributed the improved performance to tight cost control, volume growth and improved product demand owing mainly to a good tobacco season leading to a year-end cash balance of close to $85 million.
Furthermore MegaPak’s (Nampak unit) performance significantly bolstered the company’s fortunes driven by surge in exports to Central Africa.
“Tight control over inventory and trade receivables combined with a significant increase in trade payables primarily due to committed inventory purchases funded by the controlling shareholder on a trade loan basis contributed to year end cash balances accumulating to $84, 5 million compared to $48, 2 million recorded in 2017.
“Sales to the group’s customer base recovered considerably as demand improved during the year as tobacco season outperformed last year and this also contributed to the good results.
“Volumes and net revenue were significantly up on prior year led by a recovery in demand from major customers , growth in exports to the Democratic Republic of Congo and capacity enhancements with operating profit well ahead of the prior year,” said Nampak.
The company also extended considerable capital expenditure of $8,3 million to Mega Pak’s installation of PET blower and plant capacity improvement as well as new moulds for the 1,5 litre Chibuku bottle at CamaudMetalbox.
“A significant portion of the capital expenditure amounting to $8, 3 million was incurred to address security of tenure for Mega Pak and installation of a new PET blower so as to expand their preform manufacturing capacity.
“At CamaudMetalbox, the expenditure included new moulds for the 1, 5 litre Chibuku bottle, closures and upgrades to the food can lines to improve can stackability,”said Nampak.