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Nampak profit increases

Benefits from Nigeria and Angola can-business growth.

Nampak, Africa’s biggest manufacturer of beverage cans, said full-year trading profit gained 10% 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 R1.8 billion ($127 million) for the 12 months through September, the Johannesburg-based company said in a statement on Thursday. Sales advanced 13% to R17.3 billion, 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%  to R22.61 as of 3:18pm in Johannesburg. The stock has declined 48% this year, compared with a 5.2% gain on the FTSE/JSE Africa All-Share Index.

©2015 Bloomberg News

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