Volume growth for beverage cans helps Nampak increase revenue 

Strong volume growth for beverage cans has helped Nampak grow its revenue by more than 20%.

The information was outlined in the South Africa-based packaging company’s trading update for the five months to end-February. The metals business saw volume increases in all key markets with the Rest of Africa making the largest contribution to revenue and trading profit growth.

The South African beverage can market experienced strong growth. To date, Bevcan South Africa experienced market conditions where demand for certain products exceeded its available capacity. Higher selling prices, resulting from significant increases in aluminium prices, was a key contributor to revenue growth as these price increases had to be passed onto customers using contractual pass-through pricing mechanisms.

Bevcan Nigeria continued to perform very well and was a major contributor to improved group results for the period.

Bevcan Angola started to experience improved volumes with the easing of pandemic-related trading restrictions, albeit from a very low base.

DivFood in South Africa traded strongly in the second quarter to date, with particularly strong fish can sales. The turnaround activities in the division continue and further benefits are expected to be realised during 2H22.

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