Angolan can market boosts Nampak
South African based packaging company Nampak has revealed strong beverage can demand from Angola in particular has boosted profits on the continent.
However, the key South African market proved tougher for Nampak with the company reporting “a marked downturn” in consumer spending in the second quarter resulting in reduced demand for most types of packaging.
Releasing its interim results for the six months ending 31 March 2013 the company reported revenue from the rest of Africa increased by 19% to R1.2billion while trading profit increased by 39% to R197million.
The trading margin in the rest of Africa improved to 15.9% from 13.7% in 2012. Including exports, the trading profit generated from the rest of Africa now accounts for 28% of group profits.
Overall, group revenue was up by 7% to R9.4billion and trading profit increased by 6% to just under R1billion with the trading margin holding steady at 10.1% and group operating profit increased by 13%.
Chief executive Andrew Marshall, who has revealed he will retire in March next year said, “All our business segments were negatively affected and lower average selling prices agreed as part of long-term supply contracts reduced the trading margin in our beverage can and glass businesses.
“There was continued good growth in beverage cans and sales of fish cans were higher but fruit and vegetable can sales were lower. Weak consumer spending reduced the demand for aerosol, paint and polish cans.
“Trading profits in the rest of Africa continue to grow on the back of the investments we made and these together with other exciting opportunities that we are currently pursuing will contribute to our growing presence on the African continent.”
Nampak has also commissioned its first new aluminium beverage can production line, which is covered in the next issue of CanTech International, for subscription details click here.
The article also looks at Nampak’s plans to convert beverage cans from tinplate to aluminium in South Africa.