Public Investment Corporation of South Africa increases stake in Nampak to 20.5%

SOUTH AFRICA – The Public Investment Corporation of South Africa, responsible for investing Government Employee Pension Fund, has increased its stake in Africa’s largest packaging manufacturer, Nampak.

The PIC previously held 10.47% in Nampak which it has increased to 20.54% of the total issued ordinary shares of the company.

According to the groups full year results for the year ended September 30, 2019, Nampak reported a loss of R390m (US$26.8m) down 132% compared to last year’s profit of R1.2bn (US$81.3m), according to its annual financial results for the year ended September 30, 2019.

The results were impacted by the R1.9bn (US$128.7m) net pre-tax foreign exchange loss in Zimbabwe, and a higher-than-expected tax rate in Angola.

Headline earnings per share (HEPS) declined more than two-thirds (69%) from 173.3c to 54.1c, while revenue declined 8% from R15.9bn to R14.6bn (US$0.98bn) and operating profit declined by 84% from R1.6bn (US$0.1bn) to R254m (US$17.2m).

On the revenue front, the performance of the group’s beverage can manufacturer Bevcan SA reported stable results, with Bevcan Nigeria delivering stellar performance with double digit volume and revenue growth.

However, the performance of Bevcan Nigeria was offset by reduced purchasing power of consumers in Angola, following currency devaluation and increased competition in the Divfood Plastics SA businesses, according to the report.

The group’s overall performance was negatively impacted by the currency devaluation in Zimbabwe.

The group has also worked to consolidate its business and reached sales agreements for its glass division, Cartons Nigeria, and intermediate bulk containers in Plastics SA. Nampak plastics Europe has also been designated for sale.

Earlier this month the group, officially launched its Liquid Carton divisions’ new Technical Hub in Roodepoort, Johannesburg.

The new plant complements Nampak’s existing liquid carton facilities, which include a sales office in Bryanston, Gauteng; a printing plant in Isithebe, KwaZulu-Natal; a research and development (R&D) facility in Cape Town, and sister carton producing plants in both Malawi and Zambia.

Following renewed popularity and rising demand for liquid cartons, Nampak says the new Technical Hub was custom built to maintain, and service the growing pool of liquid carton filling machines for the food and beverage industry, such as dairy, water and fruit juice.

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