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NAMPAK LIMITED - Unaudited consolidated interim results for the six months ended 31 March 2022

Release Date: 26/05/2022 08:00
Code(s): NPK NPKP NPP1     PDF:  
Wrap Text
Unaudited consolidated interim results for the six months ended 31 March 2022

NAMPAK LIMITED
Registration number 1968/008070/06
Incorporated in the Republic of South Africa
Share Code: NPK ISIN: ZAE000071676
Share Code: NPP1 ISIN: ZAE000004966
Share Code: NPKP ISIN: ZAE000004958
LEI: 3789003820EC27C76729
(“Nampak” or “the group” or “the company”)


SHORT-FORM ANNOUCEMENT: UNAUDITED CONSOLIDATED INTERIM RESULTS FOR THE
SIX MONTHS ENDED 31 MARCH 2022


HIGHLIGHTS

•    Revenue up 24% to R8.1bn
•    Operating profit up 26% to R668m
•    Profit for the period up 87% to R321m
•    Earnings per share up 105% to 34.9cps
•    Headline earnings per share up 102% to 35.6cps
•    Cash generated from operations before working capital changes up 30% to R1.1bn
•    Investment in working capital of R653m due to revenue growth and abnormally high
     commodity prices
•    Covenants complied with and well within thresholds
     o Net debt:EBITDA of 2.8 times
     o EBITDA:interest cover of 4.7 times


COMMENTARY
“Nampak had a rewarding yet challenging first half of the 2022 financial year. Trading conditions
improved as most of the territories we operate in did away with stringent trading restrictions and
reopened their economies. Our beverage can businesses achieved remarkable performances
and provided the foundation for a strong improvement in the group’s interim results, supported
by resilient performances from our Zambian and Zimbabwean operations. We continue to review
ways of improving the performance from our Plastics businesses.

Revenue, profitability and cash generation improved significantly but required further investment
in working capital until such time as commodity prices normalise. These good results were
achieved despite global shipping challenges and supply chain disruptions. We have worked
closely with various stakeholders to navigate this unique period in order to ensure continuity of
supply to our customers and sustainable profitability for the group going forward.”
- Erik Smuts, Chief executive officer



Overview
The first six months of the 2022 financial year were characterised by robust trading conditions in
our key markets. Group revenue increased by 24% to R8.1 billion, costs were well managed and
group profits attributable to equity holders rose 102% to R222 million. The Metals businesses
were the key contributors to revenue and trading profit growth. Local management at each
division navigated global supply chain challenges and high commodity prices carefully and
showed great resilience with improved overall results for the period.

Our safety levels remained stable and the group lost time injury frequency rate at 0.29 was within
the group’s maximum tolerance of 0.32 for the rolling twelve-month cycle.


Group financial performance
 R million                                                     1H22         1H21     % change
 Revenue                                                      8 065         6 522      24%
 Trading profit                                                 770           706       9%
 Operating profit                                               668           529      26%
 Profit before tax                                              392           272      44%
 Profit for the period                                          321           171      87%
 Cash generated from operations before working
 capital changes                                              1 080           831      30%
 Cash generated from operations                                 428           852      (50%)
 Earnings per share (cents)                                     34.9         17.0      105%
 Headline earnings per share (cents)                            35.6         17.6      102%
 Dividend per share (cents)                                        -             -       -


This short form announcement is the responsibility of the directors and is only a summary of the
information in the full announcement, which is available on the JSE website
https://senspdf.jse.co.za/documents/2022/JSE/isse/NPK/HY2022.pdf
and on Nampak's website www.nampak.com/Investors/Financial-Information under the 2022
financial year.
Any investment decisions made by investors and/or shareholders should be based on
consideration of the full announcement as a whole. This short form announcement has not been
reviewed or audited.
Copies of the full announcement may also be requested from the Group Company Secretary,
Ilse van Lochem on Ilse.vanLochem@nampak.com, alternatively collected from the company's
registered office, at no charge, during office hours.


INTERIM RESULTS PRESENTATION WEBCAST
Nampak management will hold a webcast on Thursday, 26 May 2022 at 10h00 South Africa
Standard Time (UTC+2) to present the interim results, provide a business update and address
questions from the investment community. Webcast details are available on the company website
http://www.nampak.com/Investors. The interim results announcement and presentation will be
uploaded on the website on the morning of the webcast.


On behalf of the Board


PM Surgey                   EE Smuts                    GR Fullerton
Chairman                    Chief executive officer     Chief financial officer

Bryanston
26 May 2022


Sponsor: Nedbank Corporate and Investment Banking, a division of Nedbank Limited

Registered office
Nampak House, Hampton Office Park
20 Georgian Crescent East
Bryanston, Sandton
2191
South Africa

PO Box 69983
Sandton
2021
South Africa

Telephone
+27 11 719 6300

Website
www.nampak.com




Forward-looking statements
Certain statements in this document are not reported financial results or historical information,
but forward-looking statements. These statements are predictions of or indicate future events,
trends, future prospects, objectives, earnings, savings or plans. Examples of such forward-
looking statements include, but are not limited to, statements regarding volume growth,
increases in market share, exchange rate fluctuations, shareholder return and cost reductions.
Forward-looking statements are sometimes, but not always, identified by their use of a date in
the future or such words as “believe”, “continue”, “anticipate”, “ongoing”, “expect”, “will”, “could”,
“may”, “intend”, “plan”, “could”, “may”, and “endeavour”. By their nature, forward-looking
statements are inherently predictive, speculative and involve inherent risks and uncertainties,
because they relate to events and depend on circumstances that may or may not occur in the
future. If one or more of these risks materialise, or should underlying assumptions prove
incorrect, our actual results may differ materially from those anticipated. There are a number of
factors that could cause actual results and developments to differ materially from those
expressed or implied by these forward-looking statements. These factors include, but are not
limited to: changes in economic or political conditions and changes to the associated legal,
regulatory and tax environments; lower than expected performance of existing or new products
and the impact thereof on the group’s future revenue, cost structure and capital expenditure;
the group’s ability to expand its portfolio; skills shortage; changes in foreign exchange rates and
a lack of market liquidity which holds up the repatriation of earnings; increased competition,
slower than expected customer growth and reduced customer retention; acquisitions and
divestments of group businesses and assets and the pursuit of new, unexpected strategic
opportunities; the extent of any future write-downs or impairment charges on the group’s
assets; the impact of legal or other proceedings against the group; uncontrollable increases to
legacy defined benefit liabilities and higher than expected costs or capital expenditures. When
relying on forward-looking statements to make investment decisions, you should carefully
consider both these factors and other uncertainties and events. Forward-looking statements
apply only as of the date on which they are made, and we do not undertake any obligation to
update or revise any of them, whether as a result of new information, future events or
otherwise.

Date: 26-05-2022 08:00:00
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