MPACT: 2,303 +84 (+3.79%)
South Africa plastics company Mpact H1 profits falter, shares fall
(Add details, company quotes)
JOHANNESBURG, Aug 8 (Reuters) - South African paper and
plastics packaging maker Mpact reported a 13 percent
fall in half-year earnings on Wednesday in the face of
challenging trading conditions and subdued consumer demand,
sending its share price almost 7 percent lower.
The company reported headline earnings per share for the six
months ended June 30 of 29.7 cents versus 34.3 cents in the
prior comparable period. HEPS is the main profit gauge in South
Africa which strips out certain one-off items.
"The last two years has been very challenging, our
significant investments are expected to bear fruit in the second
half of the year and beyond," said the company in a statement.
Mpact, which also has operations in Namibia, Mozambique and
Botswana, reported group revenue of 5 billion rand ($375.5
million) an increase of 2.9 percent.
The group has been investing in rebuilding mills, new
machinery and acquisitions to expand its recycling capabilities.
Recent investments, which include a 765 million rand upgrade
at its Felixton paper mill and a 150 million rand corrugator in
Port Elizabeth, will start contributing to profit this year and
have a full effect in 2019.
($1 = 13.3145 rand)
(Reporting by Nomvelo Chalumbira
Editing by Ed Stoddard)
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