Nampak Zimbabwe Limited Mega Pak’s sales volumes decreased by 2.5% compared to last year due to power outages affecting production

Published On: February 16, 2024Company: Nampak Zimbabwe Limited (NPKZ.zw)
What major challenge did Nampak Zimbabwe Limited face in the year 2023 and how did it strategize to overcome it?
In 2023, Nampak faced severe power outages, which markedly affected production at Mega Pak, leading to a decrease in full year sales volumes of 2.5%. However, the company still experienced success by controlling costs and preserving margins, as well as enhancing operational efficiency and product offerings. This strategic approach resulted in significant growth in sales and pre-tax profits for the year. Also, the company saw improved demand and volume growth despite notable complexities in the operating environment, such as currency and inflation issues.

Key Insights from Nampak Zimbabwe Limited’s 2023 Annual Report

  • Demand for packaging improved during the year, resulting in profit growth for Nampak.
  • Sales in inflation adjusted terms were ZW$ 573,78 billion, significantly higher than last year’s ZW$ 394,15 billion.
  • Profit before tax increased to ZW$ 118,32 billion from ZW$ 59,37 billion in the previous year.
  • The Company’s comprehensive profit attributable to Shareholders also increased to ZW$ 51,55 billion from ZW$ 21,3 billion in previous year.
  • Nampak employs 449 permanent employees, down from 467 in the previous year, indicating a decrease in staff count.
  • Wage increases throughout the year were more frequent, driven by pressure from employees to cushion against the hostile economy.
  • Capital expenditure amounted to ZW$ 13,14 billion, slightly higher than last year’s ZW$ 12,44 billion.
  • Hunyani Paper and Packaging saw its sales volumes improve by 13,4% compared to the previous year, driven by demand for tobacco cartons.
  • Mega Pak’s sales volumes decreased by 2.5% compared to last year due to power outages affecting production.
  • CarnaudMetalBox reported a 4.7% increase in sales volumes compared to previous year.
  • Despite the complex operating environment, the company noted significant volume growth and improved demand.

Useful links

About Nampak Zimbabwe Limited (NPKZ.zw)

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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