Nampak Ltd.has announced that its full-year trading profit gained 10 percent as growth in Nigeria and Angola offset production setbacks at some operations in its home market of South Africa.
Trading profit from continuing operations rose to 1.8 billion rand ($127 million) for the 12 months through September, the Johannesburg-based company said in a statement on Thursday. Sales advanced 13 percent to 17.3 billion rand, although net income and the dividend both fell.
“Results benefited from the continued growth and strong performance of our beverage can businesses, in particular Bevcan Nigeria and Bevcan Angola,” Chief Executive Officer Andre de Ruyter said in the statement. “The first-half loss made by the glass division and cost increases associated with the ramp-up of recently commissioned projects” weighed on earnings, he added.
The packaging maker is expanding outside South Africa to help reverse declining profit margins in its home market, where it’s cutting costs. Nampak had production difficulties at its South African glass facility this year, as well as higher-than-expected spoilage rates at a beverage-can operation in the country. Both issues have now been dealt with, the company said.
Nampak shares gained 0.5 percent to 22.61 rand rand as of 3:18 p.m. in Johannesburg. The stock has declined 48 percent this year, compared with a 5.2 percent gain on the FTSE/JSE Africa All-Share Index.