Nampak forecasts sharp rise in full-year earnings

SOUTH AFRICA – Packaging giant Nampak has announced that it expects a substantial surge in both earnings per share (EPS) and headline earnings per share (HEPS) for the financial year ended September 30, signaling a major turnaround from last year’s results.

In a trading update release, the group said HEPS for total operations is projected to range between R119.50 and R122 (US$6.96 – 7.11), a dramatic improvement from the R13.78 (US$0.80) reported for the 2024 financial year.

EPS for total operations is expected to come in even stronger, between R411.50 and R420 (US$23.97 – 24.46), compared with a loss per share of R45 (US$2.62) in the previous year.

Nampak attributed the significant upswing in EPS primarily to the recycling of a R2.2-billion (US$128.14m) net foreign currency translation reserve, a once-off accounting adjustment that boosted its bottom line.

For continuing operations, HEPS is expected to rise to between R101 and R107 (US$5.88 – 6.23), up from R33.61 (US$1.96) in 2024. EPS for continuing operations is forecast at R132 to R145 (US$7.69 – 8.45), up from R75.54 (US$4.40) last year.

The company noted that several one-off post-tax items influenced its 2025 financial performance.

These include a R369-million (US$21.49m) reduction in interest costs following debt restructuring, a R47-million (US$2.74m) pension fund surplus, and a R195-million (US$11.36m) net settlement from an outstanding Covid-19 insurance claim.

By comparison, the 2024 financial year recorded a R212-million (US$12.35m) post-retirement medical aid gain, which was offset by R372-million (US$21.67m) in other nonrecurring costs.

Nampak, which has been executing a multi-year turnaround strategy focused on debt reduction, cost containment, and asset optimization, said it will publish its audited results on December 8.

South Africa’s packaging sector has seen improving financial performance across several players as inflation cools and demand in food and beverage markets strengthens.

Earlier this month, Mpact reported higher containerboard sales driven by resilient exports, while glass manufacturer Consol noted strong beverage-sector demand ahead of the festive season.

Analysts say the uptick in earnings across the sector signals stabilizing market conditions after several years of volatility linked to supply chain disruptions and rising input costs.

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