Mishma Chakanyuka, Staff Writer 
NAMPAK Zimbabwe (Nampak) says the tight liquidity in the economy has affected its ability to restock raw materials on time.
The market has been experiencing constrained liquidity after authorities enforced measures to stabilise the economy, with companies failing to access funding and maintain adequate cash flow levels.
“Although foreign currency inflows improved over the period, the tight liquidity conditions in the economy affected our ability to replenish raw materials on time,” the managing director of Nampak, John Van Gend, said in a statement accompanying the group’s financials.
He said Nampak is expected to remain profitable through to year-end although exchange rate volatility will affect raw material supplies.
“The overall situation facing the economy remains challenging. With the election season upon us, we anticipate a continuation of the current multi-currency environment,” Van Gend said.
Nampak’s revenue for the half year, at $44,8 billion, was 56 percent ahead of the prior comparable period.
“The deteriorating inflationary trends will continue to exert further pressure on NECs for wage increases as a consequence of the multi-currency environment the group is operating in.”
During the half year ended March 31, 2023, the group recorded a two percent increase in volumes over the prior year period mainly due to the severe power cuts experienced at the Megapak plant in Ruwa, as well as a Zesa fault that affected the CMB plant for about eight weeks.
The group’s sales volumes for the period were up on tobacco cases and closures, but down on all other sectors of the business.
Nampak’s revenue for the half year, at $44,8 billion, was 56 percent ahead of the prior comparable period.
Trading margins were unchanged compared to the prior year as Nampak sought to remain competitive while the trading profit of $8,3 billion was 63 percent ahead of the same period last year.
“All units continued to trade profitably as treasury and cash flow management remain the key focus area,” Van Gend said.
Net working capital for the half year increased mainly due to increases in foreign currency-denominated trade receivables and inventory as the group sought to preserve value.
The group’s Hunyani Paper and Packaging division’s sales volumes for the period were 10 percent ahead of the prior year period while commercial volumes were eight percent down on the prior year due to a reduced supply of raw materials.
CarnaudMetalbox sales volumes for the half year were marginally down compared to the prior year period.
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