ASTRAPAK LIMITED - Astrapak Operational Update and Trading Statement for the six months ended 31 August 2013

Astrapak Operational Update and Trading Statement for the six months ended 31 August 2013

ASTRAPAK LIMITED   
(Incorporated in the Republic of South Africa) 
(Registration number 1995/009169/06) 
Share Code: APK 
ISIN: ZAE000096962                                                               
Share Code: APKP 
ISIN: ZAE000087201 
("Astrapak") 
 
Astrapak Operational Update and Trading Statement for the six months
ended 31 August 2013

Operational update

In the integrated annual report for the year ended 28 February 2013, Astrapak shareholders were informed of 
a comprehensive review that had prioritised essential building blocks for a business improvement journey with 
definable productivity and return aspirations. The recovery time frame was two years, with work on 
immediate priorities well under way, and with optimal return objectives to be achieved within five financial 
years.   
There is encouraging operational progress to streamline the portfolio of companies. This does, however, have 
financial effects, associated with both continuing and discontinued operations. The effect thereof will be 
reflected in the result for the six month period ended 31 August 2013 and for the full financial year ending 28 
February 2014.   
In positioning for the future, Astrapak has required structural and behavioural adaptations and stricter 
operational discipline; as a result, there have been  substantial senior staff changes and reduction programmes 
have been initiated.. As human capital is fundamental to charting a new course, new blood continues to be 
recruited to key specialist and managerial roles. Both the reductions in headcount and the attraction of 
specific skills have a temporary cost implication causing a time lag before productivity improvements are 
realised.    
The statement of financial position has benefitted from the receipt of insurance proceeds arising from a 
devastating fire at East Rand Plastics. The fire caused severe disruption for a protracted period of time and for 
the six months trading period the Astrapak Flexibles segment returned a poor result, with East Rand Plastics 
loss making.   
With the finalisation of the claims process, Astrapaks Flexible segment is now in the process of being optimally 
positioned in line with the new group structure and strategy. This restructuring will continue through the 
second half of the current financial year. In light of the restructure, the carrying value of the combined asset 
base is continually assessed with additional impairments to property, plant and equipment taken as and when 
necessitated.        
In line with the strategy, Alex White was sold as a going-concern with effect from 1 August 2013. Packaging 
Consultants has been closed and is now treated as discontinued.   
Within the Astrapak Rigids segment, the Moulding division performed well ahead of budget for the six month 
period. The Johannesburg site has been rationalised with injection moulding equipment now consolidated on 
one site in Pinetown as part of our previously mentioned closure strategy. Efficiency benefits are already 
apparent. Progress has been made securing long term supply contracts within the mouldings customer base.  
Also within the Astrapak Rigids segment, the PET division has underperformed budget for the period due to 
weak seasonal demand and the effects of a facility reorganisation at a major customer. A much better second 
half is anticipated. Investment has been made and future volumes secured under contract. In the Forming 
division there is a renewed look at the manufacturing footprint with a focus on management of margin, costs 
and customer engagement.   
Trading conditions are difficult, compounded by rising polymer, electricity and labour costs, as well general 
market price sensitivity. But these are conditions that underscore the necessity for Astrapak to make the tough 
decisions and implement them for the good of all stakeholders associated in various ways with the Company.         

Trading statement   
Astrapak has guided shareholders on the recovery components and immediate objectives for the financial year 
ended 28 February 2014. Legacy issues are being comprehensively dealt with and the ground laid for a much 
firmer financial footing going forward. The Company had anticipated a reduced financial result for the six 
months ended 31 August 2013 as a consequence of these factors and is now in a position of reasonable 
certainty to confirm that the financial results shall differ by at least 20% from the previous corresponding 
period.  
Consolidated continuing turnover has increased slightly, a combination of pleasing growth at the Astrapak 
Rigids segment. However, substantially reduced turnover at the Astrapak Flexibles segment was delivered for 
reasons previously described. Profit from continuing operations before exceptional items is expected to show 
a decline of between 20% and 40% in comparison with the comparative six month period ended 31 August 
2012.   
An exceptional loss in the amount of approximately R35 million shall be recognised and includes a once-off 
item in respect of insurance and impairments related to the discontinuation of Packaging Consultants. Net 
interest paid and the tax expense will reflect a reduction.  
As a consequence of the exceptional loss and the substantially increased loss from discontinued operations, 
the Company will report a net attributable loss. 
Earnings per ordinary share, which includes both continuing and discontinued operations, are expected to 
decrease by between 240% and 260% compared with the 16.9 cents reported for the six month period ended 
31 August 2012 and thus reflect a loss. The loss is due to the exceptional item and the loss making 
discontinued operations.     
Earnings per ordinary share from continuing operations are expected to decrease by between 150% and 160% 
compared with the 21.7 cents reported for the six month period ended 31 August 2012 and thus reflect a loss. 
The loss is due entirely to the exceptional item.     
Headline earnings per ordinary share from continuing operations are expected to decrease by between 40% 
and 60% compared with the 22.0 cents per share reported for the six month period ended 31 August 2012 and 
thus reflect a profit. Despite the reduction in headline earnings per share from continuing operations the 
result is reasonably expected to be better than management had budgeted for.  
Astrapak has reflected a positive net cash flow position for the period. It is anticipated that the normal 
seasonal pattern of improved second half cash collection will pertain to the year. The statement of financial 
position as at 31 August 2013 will also reflect an improvement in the debt to equity ratio.   
The financial information on which this operational update and trading statement is based has not been 
reviewed or reported on by the Companys external auditors.  
Astrapaks financial results for the six months ended 31 August 2013 are scheduled to be released via the 
Johannesburg Stock Exchange New Services on or about Friday 27 September 2013. A results presentation is 
scheduled for Monday 30 September 2013 in Johannesburg and Tuesday 1 October 2013 in Cape Town.   
 
Denver 
20 September 2013  
 
Sponsor: 
RAND MERCHANT BANK (A division of First Rand Bank Limited)  
       

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