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Johannesburg - Packaging firm Mpact reported a return to first-half profit on Thursday, helped by higher selling prices and said uncertainty in the recovery of the economy continue to weigh on demand prospects.
Mpact, which listed last month after spinning-off from paper maker Mondi [JSE:MND], said headline earnings per share for the six-months to end-June totalled 0.8c, compared with a loss of 18.4c a year earlier.
Headline EPS is the key measure of profitability in South Africa and strips out certain one-off and non-trading items.
Revenue was largely unchanged at R3bn.
Mpact said it expects improved earnings in the second half but demand remained a concern due to continued economic weakness and consumer uncertainty.
It also said demand would be impacted by increased competition due to the stronger rand.
The company did not declare an interim dividend.
Mpact shares, which have fallen nearly 7% since the listing on July 11, closed 1.93% lower on Wednesday at R12.73, compared with a 0.94% rise in the Johannesburg All-share Index .
Mpact, which listed last month after spinning-off from paper maker Mondi [JSE:MND], said headline earnings per share for the six-months to end-June totalled 0.8c, compared with a loss of 18.4c a year earlier.
Headline EPS is the key measure of profitability in South Africa and strips out certain one-off and non-trading items.
Revenue was largely unchanged at R3bn.
Mpact said it expects improved earnings in the second half but demand remained a concern due to continued economic weakness and consumer uncertainty.
It also said demand would be impacted by increased competition due to the stronger rand.
The company did not declare an interim dividend.
Mpact shares, which have fallen nearly 7% since the listing on July 11, closed 1.93% lower on Wednesday at R12.73, compared with a 0.94% rise in the Johannesburg All-share Index .
