Earnings drop for Astrapak

2011-05-09 15:48

Johannesburg - Packaging group Astrapak [JSE:APK] said on Monday that its fully diluted headline earnings per share plunged 37.1%  for the year to February to 73.5 cents from 116.9c.

For the year under review, turnover grew to R2.71bn from R2.61bn.

"The increase in turnover was as a result of a 4.9% increase in volumes and a 1.4% decrease in average selling prices, illustrating the difficulties experienced in timeously passing on price increases in a very competitive market," it said.

Gross profit decreased 11.9% to R575.5m from R653.5m.

Other costs totalled R383.7m (2010: R376.5m), an increase of 1.9%.

The group said it had continued to benefit from lower interest rates and vastly improved treasury, cash management and working capital disciplines.

Astrapak said the financial results reflected the increased cost of operations, primarily energy, labour, distribution costs and depreciation.

"The depreciation charge was not fully matched by the related revenues during the financial year as a result of depressed consumer demand within certain markets, but this situation will be rectified as economic activity and consumer spending improves into the future," it said.