STRONG DEMAND FOR CANS BOOSTS SOUTH AFRICAN NAMPAK’S REVENUES

JSE-listed South African packaging multinational Nampak has announced solid results with strong demand for most of its products. These good figures are due in part to strong beverage can volume growth in its key markets and higher prices that contributed to revenue growth of more than 20% over the previous five months.

“Significantly higher commodity and shipping prices, coupled with disruptions in the global supply chain, led to higher-than-planned working capital investment to ensure the continued supply of raw materials to our operations. The recently added geopolitical risk of the war between Russia and Ukraine has put further pressure on working capital,” the company notes.

“The South African beverage can market experienced strong growth. To date, Bevcan South Africa has experienced market conditions in which demand for certain products exceeded its available capacity. Higher selling prices, as a result of significant increases in aluminum prices, were a key driver of revenue growth, as these price increases were to be passed on to customers through contractual transfer pricing mechanisms,” they emphasize.

The company achieved a solid performance in its operations in the rest of Africa, supported by unrestricted trade in South Africa. Nampak’s metals business recorded volume increases in all key markets, with the rest of Africa making the largest contribution to revenue and trading profit growth.