News
Nampak reports 22% drop in profits before tax
Nampak has blamed lower trading income in Europe and the late commissioning of its Rosslyn paper mill in South Africa for a drop in profits for the first half of 2009.
For the six months ending 31 March 2009, the Nampak Group reported a 22% year-on-year drop in profit before tax to ZAR 558m (£42m). Sales increased 14% to ZAR 10bn (£756m).
In Europe, sales increased by 7% year-on-year to ZAR 2.8bn for the six months ending 31 March 2009. Trading income fell 6% to ZAR 150m in the same period.
Nampak attributed the fall in earnings in Europe to increased imported polymer costs, a lower performance from the company's folding cartons facility in Leeds and increased supply chain costs resulting from the weakness of the pound against the euro.
The company experienced good demand across beverage packaging, most forms of plastic packaging and food cans in South Africa, but reduced demand for paper packaging.
However, the late commissioning of the Rosslyn paper mill in South Africa negated any improvement in trading income in Africa in the first half of 2009.
Packaging manufacturer Nampak, which is listed in Johannesburg and London, has operations across the African continent and in Europe. It is a major supplier of plastic milk bottles in the UK.
