Nampak expects earnings boost

Nampak expects to report far better results for the six months ended March 2024 due to an effective cost reduction program, lower forex losses, improved working capital management and successful asset disposals.

The packaging company released a trading statement this morning informing shareholders that its half-year results will show a significant improvement compared to 2023.

Nampak’s results for the interim period will be difficult to compare to the previous year, as its share consolidation and rights offer means the weighted average number of shares (WANS) in issue for the 2023 half-year has been re-presented from 627.82 million to 2.97 million in terms.

The WANS for the six months through March 2024 is 8.28 million.

During the six-month period, Nampak classified various assets as held for sale and discontinued operations as part of an asset disposal programme that commenced in August 2023.

This has affected the company’s headline earnings per share (HEPS), headline loss per share (HLPS), earnings per share (EPS), and loss per share (LPS).

Therefore, for continuing operations, Nampak expects the following changes to its earnings compared to 2023:

• HEPS of between 4,700 cents and 5,500 cents compared to an HLPS of 11,027.3 cents
• EPS of between 4,600 cents and 5,400 cents compared to an LPS of 31,043.7 cents 

For total operations, Nampak expects the following changes to its earnings compared to 2023: 

• HEPS of between 3,000 cents and 3,400 cents compared to an HLPS of 11,524.1 cents
• LPS of between 1,050 cents and 1,250 cents compared to an LPS of 83,882.1 cents 

In addition, the impact of Nampak’s share consolidation and rights offer that occurred in September 2023 also resulted in re-presented comparative WANS.

Therefore, the per-share information from total operations for 31 March 2023 has been re-presented as follows:

Nampak said the strongest drivers of this first-half performance include a step change in the performance of its continuing operations, a highly effective cost reduction program, lower forex losses, improved working capital management and pleasing progress on asset disposals. 

The packaging giant said lower impairments benefitted its earnings and loss per share.

Nampak is expected to release its unaudited interim results on or about Friday, 28 June 2024.