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Sikhulekelani Moyo, [email protected]

LISTED paper and packaging group Nampak Zimbabwe Limited has said for the year ended 30 September 2023, capital expenditure in hyperinflation terms amounted to $13,14 billion up from $12,44 billion in 2022 and focused mainly on projects to increase capacity and improve plant services.

The firm said it has significant capital projects currently being reviewed by management and should funds become available, it plans to implement them.

In a statement accompanying the company’s consolidated results for the year ended 30 September 2023, group managing director Mr John Van Gend said the overall demand for packaging improved during the year, compared to 2022.

He said the company benefited from the volume growth experienced by their customers on the back of increased disposable income of consumers.

He added that during the year under review, management continued with its focus on cost containment and operational efficiencies, while looking for new opportunities to improve both product offerings and quality.

“The 2023 trading year saw a lot of complexities in the operating environment particularly around currency, inflation and power shortages.

Inflation

“We, however, noted some volume growth, and improved demand despite these challenges. The economy will be affected by the anticipated effects of El Nino which could impact the agricultural season ahead. 

“The group will continue to focus on cost control and margin preservation in order to meet these challenges.”

He said the group achieved sales for the year in inflation adjusted terms of $573,78 billion as compared to $394,15 billion in 2022 and a hyperinflated trading income of $114,56 billion from $83,47 billion in 2022.

For Hunyani paper and packaging, Mr Van Gend said the sales volumes for the full year improved by 13,4 percent compared to prior year.

“The improvement was due to firm demand for tobacco cartons throughout the year, on the back of a record tobacco crop and improved regional demand. Demand at Cartons and Labels Division was 1,4 percent ahead of prior year, somewhat curtailed by raw material constraints,” he said.

He added that Mega Pak full year sales volumes decreased by 2,5 percent versus prior year mainly due to severe power outages throughout the year in Ruwa, which hampered ability to produce at full potential. He said demand was strong across all product categories.

Carnaud Metal Box sales volumes for the full year grew by 4,7 percent compared to the prior year. The improvement was driven by strong growth in the closures and HDPE categories. Metals volumes were down in the prior year.

Meanwhile, Mr Van Gend said at the close of the financial year, Nampak employed 449 permanent employees compared with 467 in the previous year.

“We are continuously reviewing our manpower structures to ensure they are in line with business requirements. The group continues with its training programmes aimed at developing and retaining skills across the board,” he said. — @SikhulekelaniM1.