Nampak expects 2,000% decrease in earnings 

Nampak informed shareholders today that it expects a massive decrease in earnings for the 2023 financial year as impairment and forex losses weighed on the company’s finances.

This follows a share consolidation and rights offer, which reduced the weighted average number

of shares in issue for the prior year of 636.32 million has been restated to 3.01 million. 

The weighted average number of shares for FY23 is 3.47 million.

The change in headline loss per share (HLPS), headline earnings per share (HEPS) and loss per share (LPS) for the company are expected to be as follows –

•  HLPS of between 46,100 cents and 47,600 cents compared to HEPS of 7,589.2 cents in FY22 – a decrease of between 707% to 727%.
• An LPS of between 116,900 cents and 117,800 cents is expected compared to an LPS of 4,879.5 cents in FY22 – an increase in the loss of between 2,295% to 2,314%

Several factors impacted Nampak’s 2023 financial results.

Firstly, higher impairment losses of R2.8 billion were recognised for the year compared to R512 million in FY22.

The company also reported higher forex losses of R1.2 billion in the year, compared to R546 million in 2022. These losses were primarily attributable to the company’s operations in Nigeria. 

In addition, the company saw higher net finance costs of R1.2 billion – inclusive of once-off refinancing advisory costs of R335 million – a significant increase from R586 million in FY22.

Nampak expects to release its audited annual results on or about Monday, 4 December 2023.