Nampak Zimbabwe Limited Quarterly Performance: 41% Revenue Increase Despite Inflationary Pressures

Published On: August 17, 2023Company: Nampak Zimbabwe Limited (
What remains a key issue impacting the Group's performance?
The surge in inflation remains a key issue impacting the Group's performance going forward.

Trading Environment

  • The quarter was characterised by ongoing currency volatility resulting in inflationary pressures felt across market segments.
  • Volume for the quarter was marginally up compared to the prior year period, weighed down by lower volumes at Megapak due to power cuts.
  • Liquidity crunch resulted in more domestic transactions occurring in foreign currency.

Volumes and Financial Performance

  • Revenue for nine months to June (inflation-adjusted) grew by 41% compared to prior year period.
  • In historical terms, revenue grew 671%.
  • Marginal volume improvements and inflationary pricing explained growth.
  • Benefited from improved USD collections due to constrained ZW$ liquidity.
  • Net working capital increased due to an increase in debtors.
  • Group cash balances at end of quarter was ZW$24.6 billion.

Printing and Converting Segment – Hunyani Paper and Packaging

  • Corrugated Division sales volumes for the third quarter were 5% up on prior year period.
  • Tobacco market sales volumes up 12%.
  • Commercial carton volumes down due to constrained raw material supplies.
  • Cartons, Labels and Sacks Division sales volumes for the third quarter were 7% up.

Plastics and Metals Segment

  • Mega Pak sales volumes were down 7% compared to prior year.
  • CarnaudMetalbox sales volumes in the third quarter were 9% above the same period last year.
  • Plastics buoyed by higher HDPE bottle volumes, 36% above prior year period.
  • Metals and closures volumes down on prior year.


  • Horticultural development at Maganga Estate near Macheke progressing well.

Capital Expenditure

  • Capital expenditure of ZW$2.8 billion during nine month period was mainly for Netstal injection moulders, chiller and generator for Megapak.
  • Various projects under active consideration, subject to availability of foreign exchange.


  • Board declared dividend of ZW$160 cents per share, paid on 21 July 2023.


  • No changes to directorate during period under review.


  • Uncertain operating environment given election season on horizon.
  • Surge in inflation remains key issue impacting performance.
  • Ability to source key raw materials on back of global supply chain constraints key driver.
  • Group focusing on cost containment to improve profitability.

Useful links

About Nampak Zimbabwe Limited (

Nampak Zimbabwe Limited manufactures and markets packaging products which includes paper, plastic and metal packaging. It also has interests in leasing biological assets and a timber processing plant. Subsidiaries in the Paper division includes Hunyani Corrugated Products Division, Hunyani Cartons, Labels & Sacks Division, Hunyani Management Services Division, Hunyani Forests Limited, Hunyani Properties Limited and Softex Tissue Products (Private) Limited. Other subsidiaries include MegaPak Zimbabwe and CarnaudMetalbox Zimbabwe Limited operating in the plastics and metals segment; and companies manufacturing corrugated containers and specialised packaging for the tobacco, horticultural, flori-cultural and citrus industry for local distribution and export. Mega Pak Zimbabwe offers technology solutions for blow molding, injection molding, stretch blow molding and rotational molding. Nampak Zimbabwe Limited is listed on the Zimbabwe Stock Exchange

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