Farai Mabeza, Senior Staff Writer 
NAMPAK Zimbabwe says all its business units traded profitably during the six months ended March 31, 2021, benefiting from sales volume increases driven by a stable exchange rate.
The ZWL$ has held steady against the US$ for close to six months, with inflation declining from 836 percent in July 2020 to 162 percent last month, and the reserve bank’s weekly foreign currency auction, introduced last June, has been credited for this “stability”.
“The half year reflected an increase in volumes despite the Covid-19 restrictions that were reintroduced at the beginning of the year and which were lifted during April 2021,” the group’s managing director, John van Gend, said.
The group’s revenue increased by 18 percent to $3,6 billion during the period, with sales volumes rising across all its segments except in the tobacco unit.
“However, margins came under pressure in order to remain competitive and this resulted in a decrease of 12 percent in trading profit to $791 million,” he said.
Van Gend said access to foreign currency, although still inadequate for group operations, has been improved by the reserve bank’s weekly auctions.
He noted that the group managed to source additional amounts required from customers through US$ sales.
Hunyani Paper and Packaging sales volumes were 15 percent ahead of prior year largely as a result of an increase in the commercial sector, which went up five percent due to increased demand from customers who recovered post Covid-19.
“The tobacco sector was 19 percent down on the prior year period as late season orders did not materialise due to lower 2020 tobacco crop,” van Gend said.
The managing director said the group continues to engage with the relevant authorities to regain effective control over its estates.
The company lost control of the estates in the early 2000s fast-track phase of Zimbabwe’s land reform programme.
“It remains the intention to rehabilitate them for timber and agricultural purposes in line with the government’s declared thrust in this direction.”
MegaPak sales volumes grew 61 percent due to increased demand in the preforms and large injection moulding sectors. Closures were also up by 18 percent compared to the prior year.
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