Demand for milk cartons, cans helps Nampak - but plastic sales are down | Fin24
 
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Demand for milk cartons, cans helps Nampak - but plastic sales are down

Sep 25 2019 16:20
Compiled by Khulekani Magubane

In a trading update for the 11 months to end-August, diversified packaging company Nampak [JSE:NPK] reported lower sales of its plastic products, but said that beverage can sales were stronger than expected. 

But food can volumes were down due to a loss of a major contract for canned vegetables.

The liquid cartons business had a strong operating performance supported by improved demand for beverage cartons to package milk, fruit juice and sorghum beer.

By late afternoon, Nampak's share price was down 1.6%.

The company's SENS report said while volumes for the plastic crates business remained subdued, a contract for the supply of crates to a major soft drinks manufacturer for a period of three years was secured.

The company retrenched almost a third of its employees in Angola after a slowdown in demand, and completed a "turnaround intervention" at Nampak Kenya, which resulted in the retrenchment of 19% of staff. All the workers at its Nampak Tanzania facility will be retrenched.

Bevcan Nigeria saw strong revenue growth in recent months. "Volume growth driven by a higher market share and growth in can pack share has been sustained into the second half while trading profits are expected to be flat for the year."

READ: SHARE WATCH: Forgotten shares that might offer value


nampak  |  nigeria  |  zimbababwe  |  angola  |  south africa
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