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NAMPAK LIMITED - Short form: summary of unaudited consolidated interim results for the six months ended 31 March 2021

Release Date: 28/05/2021 08:00
Code(s): NPK NPKP NPP1     PDF:  
Wrap Text
Short form: summary of unaudited consolidated interim results for the six months ended 31 March 2021

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


   -   Revenue stable at R6.5 billion
   -   Trading profit up 11% to R706 million
   -   Operating profit up 89% to R543 million
   -   Cash generated from operations up 19% to R852 million
   -   Group funding covenants complied with in 1Q21 and 2Q21
   -   Earnings of 17.0 cps for continuing operations, compared to a
       loss of 408.9 cps in 1H20
   -   Headline earnings of 17.6 cps for continuing operations, compared
       to 7.0 cps in 1H20
   -   Headline earnings of 17.6 cps for total operations, compared to
       0.3 cps in 1H20

   “Nampak had a very pleasing first half of the year, despite the
   ongoing restrictions on trading caused by the COVID-19 pandemic.
   Overall group profitability improved, driven by our focused strategy
   to simplify the group and optimise operations. Restructuring efforts
   at DivFood yielded very positive results with the division returning
   to profitability. This, coupled with the close management of working
   capital and prudent capital expenditure, resulted in substantially
   improved cash generation.” – Erik Smuts, Nampak Chief executive

Group results were driven by good growth in the Metals division,
largely as result of a very strong performance by our Nigerian
operations. Divfood and the Plastics division in South Africa
increased profitability significantly, while export contracts at
Bevcan South Africa mitigated softer local demand for beverage cans.
Good progress was made towards achieving our strategic goal of
improving our risk profile, as management reduced the group’s
exposure to US dollar debt as planned. The simplification of the
group and optimisation of operations also delivered positive results
as all businesses focused on refining operating structures and
reduced fixed costs. Further savings are expected from these
projects for the remainder of FY21 and into FY22.

Our manufacturing sites continued to mitigate the impact of COVID-19
by implementing additional safety measures. Unfortunately, our group
lost time injury frequency rate deteriorated marginally to 0.4 and
exceeded our target of improving on the 0.35 threshold. Sadly, five
employees also passed away as a result of the coronavirus. We extend
our sympathies and condolences to their families.

Group financial performance – continuing operations

R million                               1H21          1H20   % change
Revenue                                 6 522      6 519         -
Trading profit                           706          633      11%
Operating profit                         543          287      89%
Profit before net impairments            287          117     +100%
Profit/(loss) before tax                 272      (2 923)     +100%
Profit/(loss) for the period             171      (2 858)     +100%
Cash generated from operations(1)        852          715      19%
Cash flows from operations(1)            489          301      62%
Continuing operations:
Earnings/(loss) per share (cents)       17.0       (408.9)    +100%
Headline earnings per share (cents)     17.6          7.0     +100%
Continuing and discontinued
Earnings/(loss) per share (cents)       17.0      (336.0)     +100%
Headline earnings per share (cents)     17.6          0.3     +100%
      From total operations
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 and
on Nampak's website
under the 2021 financial year.

Any investment decisions made by investors and/or shareholders
should be based on consideration of the full announcement as a
whole. The short form announcement has not been audited.

Copies of the full announcement may also be requested from the Group
Company Secretary,
Ilse   van   Lochem  on,   alternatively
collected from the company's registered office, at no charge, during
office hours.


Nampak management will hold a webcast on Friday, 28 May 2021 at
10h00 Central Africa Time (UTC+2) to present its interim results,
provide a business update and address questions from the investment
community. Webcast details are available on Nampak’s website and the interim results presentation
and announcements will be uploaded on the website, the same morning.

28 May 2021

Sponsor: UBS South Africa (Pty) Ltd
Registered office
Nampak House, Hampton Office Park
20 Georgian Crescent East
Bryanston, Sandton
South Africa

PO Box 69983
South Africa

+27 11 719 6300


Date: 28-05-2021 08:00:00
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