A South African company called Nampak claimed increased sales of cans.
volumes while the operational profit fell by around one-third for the year ending September 30, 2022.
Sales grew by 21% to R16.9 billion ($987 million), mainly because beverage can sales in South Africa, Angola, Nigeria, and Zimbabwe significantly rose.
Operating profit did, however, fall to R640 million ($37.3 million).
Supply chain breakdowns and the ensuing increase in logistics and shipping costs had a negative impact on the outcomes.”
A minor 1% decrease in core staff expenses, strong trading results from Bevcan South Africa and Nigeria, and a rebound in Bevcan Angola all contributed to the operating profit.
According to CEO Erik Smuts, our firms in Zimbabwe are still operating well and are still self-sufficient.
The can manufacturer saw “green shoots” of resurrection in several locations, despite the fact that trading conditions are still difficult.
“We faced certain operational challenges in 2022 while benefiting from favourable tailwinds.
Unlike what we anticipated, the beverage can market in South Africa experienced tremendous growth, while volumes in Angola increased by around 30% in the most recent quarter “Smuts said.
Nampak’s Metals division made the greatest money. Demand increased in all important markets, including South Africa, Nigeria, and Angola. As a result, revenue increased by 30% to R12.9 billion ($750 million) and trading profit increased by 17% to R1.3 billion ($75 million).
Despite the company experiencing “an increase in foreign exchange losses, higher interest rates, and increased impairments,” according to Smuts, Nampak’s beverage cans and beverage cartons divisions together contributed “to a satisfactory trade result” up 13% to R1.6bn ($92 million). Group trading margins thus fell from 10.2% in 2021 to 9.5% in 2022.
The Group, which operates in 10 African nations, predicts “vigorous demand from clients and consumers [in South Africa] for environmentally friendly beverage can packaging,” which will increase sales volumes in the upcoming fiscal year.
As we consider further expansionary investment in one of our beverage can lines in South Africa, safety, customer service, and operational efficiency will continue to be our top priorities, the company said. The company is considering manufacturing larger can sizes, such as 500ml, to meet Nigeria’s fluctuating market demand.
We are reassessing the future viability of this company, and we predict that decreasing demand, rising inflation, and a limited economic climate would have a negative impact on Nigeria’s need for general metal packaging “The sentence was read.