Nampak Zimbabwe’s 9-month revenue hits US$67.8M as 16% volume growth defies pricing pressures

ZIMBABWE – Nampak Zimbabwe has reported a 9 percent revenue increase to US$67.8 million for the nine months ended 30 June 2026, driven by 16 percent volume growth led by the paper segment’s tobacco packaging demand and a recovery in plastics, despite persistent cost and pricing pressures.

Group volumes rose 16 percent compared with the prior year, largely driven by the paper segment where late-season tobacco case orders from the local tobacco industry carried over into the first quarter. 

Third-quarter group volumes were 4 percent above the comparable period, supported by improved demand in plastics and tobacco packaging. 

Segment Performance and Volume Drivers

The Hunyani Corrugated Products division was among the key performers, with nine-month volumes 26 percent above the prior year, supported by a larger tobacco crop and stronger demand for cartons during the opening quarter. 

Third-quarter volumes at Hunyani were consistent with the prior year, while tobacco-sector sales increased 3 percent, buoyed by higher carry-over demand. 

At Mega Pak, nine-month volumes increased 8 percent, while third-quarter volumes surged 14 percent, signalling a meaningful recovery across its product categories, though the benefit of volume recoveries was partly offset by margin compression to remain competitive.

The performance was partly weighed down by subdued demand for metal packaging, supply-chain disruptions affecting raw materials and continued pressure on commercial carton volumes as some customers transitioned to in-house manufacturing.

Outlook and External Headwinds

The company expects tobacco demand to remain resilient through the end of the season, with volumes improving modestly across all business units during the final quarter. 

The group expects to benefit from the larger tobacco crop within the paper segment, as well as continued volume recovery in the plastics segment. 

However, heightened geopolitical tensions in the Gulf region and the Russia-Ukraine conflict are expected to continue exerting pressure on operating costs, while recent anti-immigrant demonstrations in South Africa may negatively affect regional economic activity.

Management remains focused on strengthening operational efficiency, controlling costs and improving cash generation, with the group remaining ungeared to provide balance-sheet resilience as it navigates the prevailing operating environment.

Subscribe to our email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE