Nampak to announce positive interim results despite challenging consumer environment

SOUTH AFRICA – JSE-listed packaging giant Nampak is set to deliver improved interim results for the six months ended March 31, buoyed by top-line growth, margin expansion, and stronger profitability—even amid constrained consumer spending.

In a trading statement issued on May 16, the company reported a 22% increase in trading profit and a 7% rise in operating profit compared to the prior year.

Nampak attributes this performance to continued discipline in revenue growth management, with a strong emphasis on margin protection, cost containment, and operational efficiency.

Despite a tough economic climate and a high base from the corresponding period in 2024, Nampak said its financial performance for the first half of FY2025 was solid.

The group also made notable progress in reducing debt, supported by the sale of Bevcan Nigeria, robust operating cash flows, and lower interest expenses—although these gains were partially offset by increased investment in net working capital.

Additionally, Nampak recognised a R65-million (US$3.60m) pension fund surplus and received a R100-million interim payment from an outstanding Covid-19 insurance claim during the reporting period.

However, the after-tax benefit of these items was less pronounced than in the previous period, which included a R290-million (US$5.54m) gain from post-retirement medical aid adjustments, significantly boosting prior headline earnings.

Looking ahead, Nampak expects headline earnings per share (HEPS) from continuing operations to rise between 1% and 8% year-on-year, reaching between R54.50 and R58.50, compared to R54.10 in the previous period.

Earnings per share (EPS) from continuing operations are projected to grow by 6% to 17%, to between R56 and R62, up from R52.96 a year ago.

The improvement in both HEPS and EPS is attributed to stronger trading results and reduced net finance costs.

For total operations, HEPS is forecast to jump between 98% and 114% year-on-year, reaching between R64 and R69, while EPS is expected to range between R340 and R360—a sharp turnaround from a loss of R11.23 per share in the comparable period.

The sale of Bevcan Nigeria also played a key role in lifting total operations EPS, as the transaction triggered the recycling of a foreign currency translation reserve related to the deconsolidation of the business.

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