Nampak shares recorded their biggest two-day gain since 2013 after the beverage-can maker agreed to supply Angola’s biggest importer Refriango with “substantially more” than half of its requirements.
The stock gained as much as 11% after Bloomberg News reported the deal late on Thursday, the most over two days since November 2013, and traded up 7.9% at R24.82 at 10:38am in Johannesburg on Friday, the highest since October 6.
Nampak will raise output at its second production line in Angola as a result of the agreement, chief executive officer Andre de Ruyter said in an interview on Thursday.
Nampak, the only can producer with manufacturing operations in Angola, has benefited from customer demand for locally-sourced supplies due to restrictions on foreign exchange and government plans for an import duty, De Ruyter said in September. Already Africa’s largest maker of beverage cans, Nampak is seeking to expand outside of its home market of South Africa to take advantage of wider profit margins in countries like Angola and Nigeria.
“Our second line, an aluminum line, is now going to be ramping up to full capacity utilisation more quickly than we had previously anticipated,” De Ruyter said in the interview. Refriango has about 45% in the carbonated soft drink market in Angola, according to the CEO.
Nampak said earlier on Thursday full-year trading profit gained 10% as growth in Nigeria and Angola offset production setbacks at some operations in South Africa.
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