NAMPAK ZIMBABWE (Nampak) says it will continue to focus on cost control and margin preservation in anticipation of a year characterised by strong economic headwinds.
The company’s demand for packaging significantly improved last year, with the group’s managing director, John Van Gend saying it benefited from the recovering economy, led by a rebound in agricultural and mineral commodities.
The company also witnessed its packaging sales volumes improve in 2021 compared to the previous year.
“Focus remained in cost containment within a difficult trading year. The company continued to invest in the business where there was growth whilst looking at potential new opportunities to improve product offering and quality. There was improvement in accessing foreign exchange through the official foreign currency market,” Van Gend said in a financial statement for the year ending September 31, 2021.
The company also witnessed its packaging sales volumes improve in 2021 compared to the previous year.
Hunyani volumes for the full year increased by 23 percent compared to the prior year driven by the tobacco case market where the local crop output improved, but was curtailed by raw materials constraints in the fourth quarter.
Megapak full year volumes increased by 68 percent compared to the prior year, mainly due to strong demand across all product categories and improved raw materials availability. Exports recovered in the regional markets due to the relaxation of Covid-19 restrictions.
Carnaud Metalbox volumes for the full year grew by 31 percent compared to the previous year due to strong growth in the HDPE category with a marginal improvement in metals.
Closure volumes were slightly down, as capital expenditure increased to ZW$284,9 million from ZW$147,6 million recorded in 2020.
“There are some significant capital projects currently being reviewed by the company and should funds become available, it is our intention to implement them.
“The need to retain sufficient reserves to cover the working capital requirements of the business remains paramount, as does the need for capital expenditure to upgrade and replace ageing plants. Under these circumstances, which also include continuing economic uncertainty, the directors have decided to waive payment of a dividend,” Van Gend said.
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