South African packaging giant bounces back

After several years of weak results and continued losses, Nampak has reported a strong set of interim results, with substantial profit growth.

Nampak is the largest manufacturer of beverage cans in South Africa and Angola, and it holds substantial positions in other metal packaging in South Africa.

The company is also the only producer of two-piece tinplate cans and aluminium monobloc aerosol cans in its home market.

Over the past few years, Nampak has sold several businesses to streamline its operations and evolve into a focused metals packaging business.

This strategy seems to have paid off, as the company published strong interim results for the first half of its 2025 financial year.

Nampak reported revenue of R5.67 billion for the six months through March 2025, an 11% increase from the first half of its 2024 financial year.

CEO Phil Roux explained that revenue growth management disciplines were maintained in this period, focusing on margin management, cost containment and efficiency improvements. 

This translated into top-line growth, margin expansion, a 22% increase in trading profit, and a 7% increase in operating profit.

He added that the company continues to make good progress in decreasing its debt levels. 

In the first half of its 2025 financial year, the sale of Bevcan Nigeria aided strong operating cash flow and lower interest costs.

However, Roux noted that this was partially offset by an increased investment in net working capital.

Nampak’s earnings before interest, tax, depreciation and amortisation (EBITDA) of R1.1 billion

increased by, 7% benefiting from improved trading margins and stringent cost control.

The packaging giant reported a profit of R3.01 billion for the six-month period, a significant improvement from the R135 million loss recorded in H1 2024.

Nampak’s earnings per share grew from a loss of 1,123.5 cents per share to earnings of 35,842.2 cents.

Looking forward, Nampak said its outlook remains promising. “The continuity of strategic and cultural interventions bodes well for sustaining performance into the future,” the company said.

“The Nampak brand proposition continues to be strengthened by virtue of quality distinction.”

The company’s board did not declare an ordinary dividend for the half-year.