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ASTRAPAK LIMITED - Summarised unaudited interim results for the sixmonths ended 31 August 2015

Release Date: 30/09/2015 07:05
Code(s): APK APKP     PDF:  
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Summarised unaudited interim results for the six months ended 31 August 2015

Astrapak 
(Incorporated in the Republic of South Africa) (Registration number 1995/009169/06) 
Share code: APK ISIN: ZAE000096962 Share code: APKP ISIN: ZAE000087201 
(“Astrapak” or ”the Company“ or “the Group”)

Summarised unaudited interim results for the six months ended 31 August 2015 

Charting a new course

COMMENTARY

Key financial features of the period 
•    Continued improvement in selling prices per kilogram as mix favours higher value business 
•    Net cash inflow of R125 million from sale of non-core assets on which fair value has been realised 
•    Group net debt to equity improves to 6,2% from 30%
•    89% increase in cash generated by operating activities 
•    EBITDA margin improves to 8,9% from 8,1% in continuing operations
•    Net working capital cycle of 30 days
•    Profit per share of 16,6 cents compared to a loss of 43,2 cents 
•    Headline loss per share of 6,5 cents compared with a loss of 33,1 cents 
•    Continued operations absorbs certain costs of discontinued operations until date of transfer or closure
•    A strengthened platform for a smaller group servicing relatively defensive packaging categories 

Trading review 
The year ended 28 February 2015 concluded the turnaround phase of Astrapak and we are now firmly focused
on finalising the exit from non-core businesses, removing expenses deliberately incurred to facilitate this recovery and
steadily bringing our operations up to internationally benchmarked returns. In recent months the trading
environment has deteriorated and has remained tough during the six-month period, which makes the timeliness of the business
reengineering initiatives that much more appropriate. 

The results continue to reflect both continuing and discontinued operations, these being operations that the Board has
classified as assets that no longer form part of the future of the Group or as assets held-for-sale. This process of
closure, disposal and consolidation of the core asset base is proceeding to plan with further cash proceeds being realised
during the period. As previously advised, the extensive business reengineering process would continue to affect the
results through the current financial year. While the losses and operating costs of discontinued operations have been
reduced, they continue to be shouldered until such time as they are transferred to new beneficial owners. Results from
continuing operations in isolation are disproportionately depressed because of this. 

The Group announced to shareholders during the period that East Rand Plastics was sold with effect from 31 July for a
total purchase price of R96,0 million, Cinqpet was sold with effect from 1 July 2015 for a total purchase price of R41,7 million 
and Knilam is to be sold for approximately R17,0 million with an anticipated effective date of 1 November 2015. All these sales 
realised good value and speak to the intrinsic value of our core remaining operations. Other non-core disposals, including surplus
property, are currently progressing to plan. 

Improved cash flow from operations, a decrease in cash applied to working capital, reduced capital expenditure and the
benefit of cash inflows on disposals have enabled the Group to record considerably reduced gearing. Net working capital
days continued to improve. This is a very strong financial platform off which to secure the medium-term return
objectives we have previously shared with our stakeholders. 

The Group concluded the reporting period with an improved gross profit (“GP”) and earnings before interest, tax,
depreciation and amortisation (“EBITDA”) on a continuing basis. Our GP percentage on continuing operations increased to 22,7%
from 21,1%, while our EBITDA percentage margin on continuing operations increased to 8,9% from 8,1%. 

Continuing turnover decreased by 6,2% to R637,6 million as part of our strategy to exit either non-core or sub-optimal
markets in pursuit of higher value business. Turnover of R32,5 million associated with the businesses of Hilfort
Plastics Bloemfontein and Upington is reflected in the comparative number, with these businesses disposed of in the second
half of the prior financial year - allowing for this, continuing turnover showed a decrease of 1,5%.

Selling prices per kilogram improved further, up 4,5% for the period, as the mix shifts in favour of higher value
business. The average selling price was R45,67 per kilogram during the period compared with R43,70 per kilogram. Pricing and
procurement coordination and demand forecasting is a focal point and continues to yield benefits. On the whole, this
was a relatively stable period for raw material and product pricing. 

Tonnage of polymer converted in our continuing operations for the period decreased by 5,8% to 13 962 tons compared with
only 14,816 tons. Business is split approximately 60/40 between our moulding and thermoforming
technologies, which both experienced increased average selling prices per kilogram converted, lower sales in Rand and lower
volume of polymer converted. While there are mix benefits, loadings were lower than they could have been as we prepared for
the take-on of new work that is now commencing in the second half. In addition, economic difficulties in oil-dependent
Angola, to which the Group has an indirect export relationship through the manufacture of UHT yoghurt cups, resulted in
significantly lower volumes to that market. 

Dollar-based global oil prices have been especially volatile over the past year with a weakening bias. This has a
direct influence on the polymer market. During the six months, the Rand averaged R12,28 to the US Dollar versus R10,61 in
the same period last year and R11,30 during the second six months of the previous financial year. Timing of pricing
arrangements are a feature but there was a broadly neutral effect on margin in this period compared with a base which had
higher polymer prices. Over the course of a cycle, raw material movements should be broadly neutral as raw material price
rises or reductions are largely passed through to customers, as determined by market-relevant factors and contractual
price adjustment mechanisms. 

Astrapak has recently commenced a significant new multi-year supply agreement with a large multinational FMCG
customer with full volumes to flow once capacity has been installed. Additional multi-year contracts are in place with 
well-known local and international FMCG customer  all of whom feature within our top six customers. 

Astrapak has experienced delays on a strategically important multi-year contract with a major international customer
in the personal care market as a result of design changes and technically demanding specifications. It has taken time to
finalise and gain requisite approvals. In preparation, Astrapak made available factory capacity in the Eastern Cape and
at one of its KwaZulu-Natal operations and has absorbed costs. With the reasons for these delays now addressed, the
benefits from this contract will be seen in the second half. 

The discontinuation of our Bronkhorstspruit plant is going to plan, with business reallocated in the Group wherever possible. 
The adjacent deodorant ball factory will be consolidated at the JJ Precision site before the end of the financial year. 

Our capital expenditure is therefore being strategically targeted. There are currently five major capex projects under
way that align with our customer focus. This includes power supply upgrades for reliability, new state-of-the-art
equipment, civils and other building work on factory renovation, and relocation of existing equipment to optimise production
on fewer sites and improve workflow and storage. 

These initiatives fit squarely with the strategic purpose of reengineering Astrapak to be a streamlined specialist in
moulding and forming plastic packaging technologies, manufacturing for customers in the relatively defensive categories
of personal care, toiletry, dairy, spreads, catering, confectionery and automotive lubricants. 

During the period, customer concentration increased relative to the previous situation with the top six customers
accounting for more than half of turnover but with a good spread of work nevertheless being achieved outside of the top six.
This increased concentration is deliberate as we prioritise customers for which technical, quality and financial entry
barriers are far higher than in most areas of plastic packaging. Typically, our top customers have international reach and wish
to partner with a financially sound converter that meets international norms in manufacturing excellence and sophistication and
who can reinvest alongside. 

Customer engagement remains a top executive priority with a focus on managing customer expectations, demand planning,
forecasting and monitoring OTIFQ outcomes. 

Electricity outages and load shedding remain a disruptive feature and a practical challenge that we are managing to
the best of our ability. The business reorganisation and our electricity saving initiatives are helping in this regard,
with our energy usage per ton converted continuing to improve. 

Independently verified audits of our environmental impacts produced favourable outcomes relative to our peer group in
plastic packaging with clear ideas on where we are able to do better. In key areas such as water usage, energy usage in
kWh, tons of CO2e, plastic raw material converted, waste generation and air quality, Astrapak has made good progress.
Environmentally sustainable business is also potentially more profitable business and in line with what our international
customers seek.

Financial review 
An attributable profit of R20,1 million compared with a restated loss of R52,3 million. This equates to earnings per
share of 16,6 cents versus a loss per share of 43,2 cents. 

Continuing operations recorded a loss of R8,4 million after investment income of R5,9 million, finance costs of R17,3
million, tax of R4,7 million, payment of preference share dividends of R7,2 million and income attributable to
minorities of R7,2 million. 

Discontinued operations recorded a profit after interest and tax of R28,6 million with exceptional items of R30,5
million contributing a significant proportion. 

The headline loss attributable to ordinary shareholders is R7,8 million, compared with R40,1 million, and is all
attributable to continuing operations with discontinued operations breaking even. The headline loss per share of 6,5 cents
compared with 33,1 cents and is split 6,4 cents to continuing operations and 0,1 cents to discontinued operations. 

Profit on disposal of assets of R3,3 million and profit on disposal of business of R32,5 million was recorded and
represents the only headline adjustments, other than the associated tax expense of R7,9 million, for the period. No 
impairments were recorded on property, plant and equipment. As indicated at the full year, the legacy situation insofar 
as the assets of the Group are concerned, has principally been dealt with. 

Some costs associated with the turnaround remain in headline earnings and are recorded as normal running expenses, while
discontinued operations continue to incur costs at the centre until such time as ownership legally changes hands. The
Group is on track to an optimally rightsized overhead structure.

Cost of sales reduced by 8,1% to R493,2 million with revenue from continuing operations down by 6,2% to R637,6 million, 
decreasing by 1,5% if the impact of the disposed Hilfort operations is adjusted for. Gross profit increased by 0,8% to
R144,4 million. Distribution and selling costs increased by a modest 4% to R52,1 million, while administrative expenses
reduced by 10,3% to R73,6 million. Other income of R3,2 million includes profits on assets disposed of and various
miscellaneous items such as DTI incentives. The depreciation charge for continuing operations increased to R34,5 million
from R32,8 million, a rise of 5,2%. 

EBITDA from continuing operations of R56,5 million, up from R54,9 million, was achieved on revenue from continuing
operations of R637,6 million and represents an improved margin of 8,9%. This is below our medium-term target of 12% to 15%
but heading in the right direction. 

Profit from continuing operations before exceptional items is flat at R22 million. 

Net finance costs of R11,4 million translates to an EBITDA interest cover ratio of 5,0 times. Finance charges in the
second half are expected to reflect the timing of asset disposals and substantially improved level of gearing recorded at
the interim stage. 

Cash generated by reducing the investment in net working capital totalled R49,4 million compared with R36,5 million 
previously. This decrease assisted with a reduction in net trade working capital to R105,4 million. Net working capital days 
of 30 compare with 40 days in the corresponding period last year and 31 days for the year ended 28 February 2015. Working 
capital  is targeted to remain in the region of 30 days. 

Net debt has fallen to R63,6 million from R325,8 million a year previously and compared with R307,7 million as at 28
February 2015. The debt to equity ratio is 6,2%. The Group has substantial unused credit facilities. Continuing
businesses are net cash positive if disposal proceeds from discontinued operations are excluded. 

Capital expenditure of R40,0 million has reduced by 28% compared with the comparative R55,5 million. As previously
communicated, we budgeted for an elevated level of capex in the 2016 financial year as we invest in partnerships with major
multinational customers in return for long-term contracts. Thereafter, replacement capex will be in line with
depreciation. 

The Group ended the period with ordinary equity of R887,9 million, compared with R867,8 million as at 28 February
2015. Goodwill is reflected at R69,5 million. Preference share capital, net of costs, is unchanged at R142,6 million. Net
asset value per share is 851 cents. 

We anticipate further cash inflows in the second half of the 2016 financial year associated with sales of assets which
should result in a pro forma ungeared statement of financial position. The Board shall assess appropriate use of
surplus cash. 

Dividend 
No ordinary dividend is declared. 

Recommencement of dividend payments to ordinary shareholders is an important goal and payments will be determined by
reference to the retention needs of the Company for maintenance and growth and in relation to asset management and
profitability attained. 

Holders of preference shares continue to receive dividends in the normal course. 

Prospects 
While markets served are soft in general, Astrapak has good line of sight on a reasonable proportion of future volumes
based on multi-year contracts secured. Mix of volume and selling price per kilogram is more important than absolute
level of volume, as demonstrated successfully in the first-half result. 

We anticipate completing our exit from discontinued operations and assets surplus to requirements and thus releasing
further cash. 

An improved result for the second half of the financial year is targeted. 

Astrapak thanks its customers, suppliers, funders and shareholders for their support. 

Changes to the Board 
There are no changes to the Board since the conclusion of the year end. 

Share capital 
There is no movement in authorised share capital for the period. The number of ordinary shares in issue is 135 131 000
and the weighted average number of ordinary shares in issue is 121 036 000. 

Changes in shareholding 
As at 31 August 2015, Coronation Asset Management Proprietary Limited and Regarding Capital Management Proprietary
Limited held 25,90% and 9,66% of Astrapak respectively compared with 25,38% and 17,85% respectively as at 28 February 2015.
Lereko Metier Capital Growth Fund remains the largest single shareholder with an unchanged holding of 29,92%. 

Subsequent events 
There are no significant subsequent events that have an impact on the unaudited financial information at 31 August
2015.

For and on behalf of the Board

Phumzile Langeni 
Chairman

Robin Moore 
Chief Executive

Manley Diedloff 
Chief Financial Officer 

Denver

29 September 2015

SUMMARY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME                                                                                                                                           
  (R’000)                                                                           Notes  %          Unaudited    Restated        Audited 
                                                                                           change    six months   Unaudited financial year 
                                                                                                          ended  six months          ended 
                                                                                                      31 August       ended    28 February 
                                                                                                           2015   31 August           2015 
                                                                                                                      2014*                                                                                                                                                           
  CONTINUING OPERATIONS                                                                                                                    
  Revenue                                                                           9        (6,2)     637 644     680 026      1 388 606 
  Cost of sales                                                                                       (493 209)   (536 731)    (1 039 339) 
  Gross profit                                                                                0,8      144 435     143 295        349 267 
  Administrative and other expenses                                                                    (73 626)    (82 112)      (218 495) 
  Distribution and selling costs                                                                       (52 066)    (50 054)       (99 392) 
  Other items of income and expenditure                                                                  3 242      10 976         30 131 
  Profit from operations before exceptional items                                            (0,5)      21 985      22 105         61 511 
  Exceptional items                                                                 10                       -      (1 747)       (36 632) 
  Profit from operations                                                            11        8,0       21 985      20 358         24 879 
  Investment income                                                                                      5 938       6 474         13 372 
  Finance cost                                                                                         (17 283)    (16 898)       (34 396) 
  Profit before taxation                                                                      7,1       10 640       9 934          3 855 
  Taxation expense                                                                                      (4 681)     (5 583)       (14 891) 
  Profit/(loss) for the period from continuing operations                                    37,0        5 959       4 351        (11 036) 
  DISCONTINUED OPERATIONS                                                                                                                  
  Profit/(loss) for the period from discontinued operations                         12      159,0       28 554     (48 385)      (111 272) 
  Profit/(loss) for the period                                                              178,4       34 513     (44 034)      (122 308) 
  Other comprehensive loss                                                                                   -           -         (4 813) 
  Total comprehensive profit/(loss) for the period                                          178,4       34 513     (44 034)      (127 121) 
  Attributable to:                                                                                                                         
  Ordinary shareholders of the parent                                                                   20 105     (52 319)      (143 309) 
  - Loss for the period from continuing operations                                                      (8 449)     (3 934)       (27 224) 
  (Loss)/profit for the period from continuing operations before exceptional items                           -      (2 187)         9 408 
  Exceptional items                                                                                          -      (1 747)       (36 632) 
  -  Profit/(loss) for the period from discontinued operations                                          28 554     (48 385)      (111 272) 
  - Revaluation of land and buildings (net of tax)                                                           -           -         (4 813) 
  Preference shareholders of the parent                                                                  7 223       6 005         10 890 
  Non-controlling interest                                                                               7 185       2 280          5 298 
  Total comprehensive profit/(loss) for the period                                                      34 513     (44 034)      (127 121) 
  Profit/(loss) per ordinary share                                                  13       138,4        16,6       (43,2)        (114,4) 
  - continuing operations                                                                   (118,7)       (7,0)       (3,2)         (22,5) 
  - discontinued operations                                                                  159,0        23,6       (40,0)         (91,9) 
  Fully diluted profit/(loss) per ordinary share (cents)                            13       138,4        16,6       (43,2)        (114,0) 
  - continuing operations                                                                   (118,7)       (7,0)       (3,2)         (22,4) 
  - discontinued operations                                                                  159,0        23,6       (40,0)         (91,6) 
  Preference dividend paid and accrued                                                                 7 223,0     6 005,0       10 890,0 
  Preference dividend per share (cents)                                                                 481,53      400,33         726,00 
  *Refer to note 2.                                                                                  

RECONCILIATION OF HEADLINE EARNINGS                                                                                        
  (R’000)                                                  Notes         %     Unaudited    Restated         Audited 
                                                                     change   six months   Unaudited  financial year 
                                                                                   ended  six months           ended 
                                                                               31 August       ended     28 February 
                                                                                    2015   31 August            2015 
                                                                                                2014                 
                                                                                                                     
  Ordinary shareholders of the parent                                 138,4       20 105    (52 319)       (138 496) 
  - continuing operations                                                         (8 449)    (3 934)        (27 224) 
  - discontinued operations                                                       28 554    (48 385)       (111 272) 
  Headline loss adjustments                                                                                          
  - Impairment of property, plant and equipment                                        -     15 513          38 625 
  -  Profit on disposal of property, plant and equipment                          (3 344)    (2 301)         (2 677) 
  - Impairment of goodwill                                                             -          -          35 248 
  - Profit on sale of business                                                   (32 500)    (2 265)        (15 165) 
  - Total tax effect of adjustments                                                7 897      1 281          (4 035) 
  Headline loss attributable to ordinary shareholders                             (7 842)   (40 091)        (86 500) 
                                                                                                                     
  - continuing operations                                                        (7 773)     (1 584)         (2 509) 
  - discontinued operations                                                         (69)    (38 507)        (83 991) 
  Headline loss per ordinary share (cents)                    13       80,4        (6,5)      (33,1)          (71,5) 
  - continuing operations                                            (392,3)       (6,4)       (1,3)           (2,1) 
  - discontinued operations                                            99,7        (0,1)      (31,8)          (69,4) 
  Fully diluted headline loss per ordinary share (cents)      13       80,4        (6,5)      (33,1)          (71,2) 
  - continuing operations                                            (392,3)       (6,4)       (1,3)           (2,1) 
  - discontinued operations                                            99,7        (0,1)      (31,8)          (69,1) 
                                                                                                                     

SUMMARY CONSOLIDATED STATEMENT OF FINANCIAL POSITION                                                             
  (R’000)                                                     Notes       %      Unaudited                        Audited 
                                                                      change    six months     Unaudited   financial year 
                                                                                     ended    six months            ended 
                                                                                 31 August         ended      28 February  
                                                                                      2015     31 August             2015 
                                                                                                   2014                  
                                                                                                                          
  Assets                                                                                                                  
  Non-current assets                                                  (35,2)       920 090     1 420 319          933 932 
  Property, plant and equipment                                   3                737 537     1 183 535          734 314 
  Goodwill                                                                          69 497       110 776           75 497 
  Deferred taxation assets                                                          59 790        69 902           69 326 
  Investments and loans                                           4                 53 266        56 106           54 795 
  Current assets                                                      (29,8)       535 504       762 992          472 038 
  Inventories                                                     5                165 986       256 473          130 378 
  Accounts receivable                                                              237 549       451 001          269 069 
  Taxation receivable                                                                3 003         6 788            2 577 
  Cash and cash equivalents                                       6                128 966        48 730           70 014 
  Assets classified as held-for-sale                              7                514 306         7 284          688 569 
  Total assets                                                        (10,1)     1 969 900     2 190 595        2 094 539 
  Equity and liabilities                                                                                                  
  Total equity                                                         (5,0)     1 103 009     1 161 326        1 074 575 
  Equity attributable to ordinary shareholders of the parent                       887 877       958 585          867 772 
  Preference share capital and share premium                                       142 590       142 590          142 590 
  Non-controlling interest                                                          72 542        60 151           64 213 
  Non-current liabilities                                             (36,1)       285 557       447 195          343 324 
  Long-term interest-bearing debt                                                  125 049       260 000          170 190 
  Long-term financial liabilities                                                        -           904                - 
  Deferred taxation liabilities                                                    160 508       186 291          173 134 
  Current liabilities                                                 (36,1)       371 879       582 074          398 168 
  Trade and other payables                                                         298 132       458 373          299 693 
  Shareholders for preference dividends                                              6 211         4 019            4 258 
  Short-term interest-bearing debt                                                  67 145       114 522           91 450 
  Taxation payable                                                                       -         5 160            1 637 
  Bank overdrafts                                                 6                    391             -            1 130 
  Liabilities relating to assets held-for-sale                    7                209 455             -          278 472 
  Total equity and liabilities                                        (10,1)     1 969 900     2 190 595        2 094 539 

SUMMARY CONSOLIDATED STATEMENT OF CHANGES IN EQUITY                                                                                                               
  (R’000)                                                       Notes   Unaudited     Unaudited         Audited 
                                                                       six months    six months  financial year 
                                                                            ended         ended           ended 
                                                                        31 August     31 August     28 February  
                                                                             2015          2014            2015 
                                                                                                                
  Opening balance                                                       1 074 575     1 214 748       1 214 748 
  Comprising:                                                                                                   
  Ordinary share capital and premium                                      199 502       199 502         199 502 
  Retained income                                                         664 221       795 090         795 090 
  Capital reserve                                                   8      16 640        20 980          20 980 
  Non-controlling put options                                                   -          (904)           (904) 
  Revaluation reserve                                                     134 856       147 296         147 296 
  Treasury shares                                                        (147 447)     (147 447)       (147 447) 
  Equity attributable to ordinary shareholders of the parent              867 772     1 014 517       1 014 517 
  Preference share capital and premium                                    142 590       142 590         142 590 
  Non-controlling interest                                                 64 213        57 641          57 641 
  Movements:                                                                                                    
  Profit/(loss) for the period                                             34 513       (44 034)       (122 308) 
  Preference dividend paid                                                 (7 223)       (6 005)        (10 890) 
  Contributions made by non-controlling interest                            1 144           931           1 274 
  Adjustment to fair value of put options                                       -             -             904 
  Reclassification from revaluation reserve to retained income                  -         7 854               - 
  Revaluation reserve                                                           -        (7 854)         (4 813) 
  Share-based payment expense for the period                                    -        (4 314)         (4 340) 
  Closing balance                                                       1 103 009     1 161 326       1 074 575 
  Comprising:                                                                                                   
  Ordinary share capital and premium                                      199 502       199 502         199 502 
  Retained income                                                         684 326       751 326         664 221 
  Capital reserve                                                   8      16 640        16 666          16 640 
  Non-controlling put options                                                   -          (904)              - 
  Revaluation reserve                                                     134 856       139 442         134 856 
  Treasury shares                                                        (147 447)     (147 447)       (147 447) 
  Equity attributable to ordinary shareholders of the parent              887 877       958 585         867 772 
  Preference share capital and premium                                    142 590       142 590         142 590 
  Non-controlling interest                                                 72 542        60 151          64 213 
  Total equity                                                          1 103 009     1 161 326       1 074 575 

SUMMARY CONSOLIDATED STATEMENT OF CASH FLOWS                                                                                                                                       
  (R’000)                                                            Notes        %     Unaudited    Unaudited          Audited 
                                                                              change   six months   six months   financial year 
                                                                                            ended        ended            ended 
                                                                                        31 August    31 August      28 February  
                                                                                             2015         2014             2015 
                                                                                                                                
  Cash generated from operations before working capital changes                 89,1       64 485       34 092           37 121 
  Decrease in working capital                                                              49 372       36 521           59 041 
  Net interest and taxation paid                                                          (26 634)     (30 286)         (50 146) 
  Net cash inflow from activities before distributions to shareholders         116,3       87 223       40 327           46 016 
  Dividend distribution to all shareholders                                                (5 272)      (6 008)         (10 654) 
  Net cash inflow from operating activities                                    138,8       81 951       34 319           35 362 
  Capital expenditure                                                                     (39 963)     (55 482)        (162 851) 
  Net movement of investments, subsidiaries and non-controlling interests                   2 674        2 148            9 563 
  Proceeds on disposal of property, plant and equipment                                   124 546       48 796          152 817 
  Net cash inflow/(outflow) from investing activities                                      87 257       (4 538)            (471) 
  Net cash outflow from financing activities                                             (109 517)     (43 331)         (28 287) 
  Net increase/(decrease) in cash and cash equivalents                                     59 691      (13 550)           6 604 
  Net cash and cash equivalents at the beginning of the period                             68 884       62 280           62 280 
  Net cash and cash equivalents at the end of the period                 6     163,9      128 575       48 730           68 884 

SUMMARY CONSOLIDATED SEGMENTAL ANALYSIS                                                                            
  (R’000)                                                             Rigids  Flexibles        Total      Discon-        Total  
                                                                                         continuing       tinued         Group 
                                                                                          operations  operations*              
                                                                                                                               
  Revenue for segment                                      2015      724 132          -      724 132      439 874    1 164 006 
                                                           2014      741 724          -      741 724      588 427    1 330 151 
  Transactions with other operating segments of the Group  2015      (86 488)         -      (86 488)      (8 853)     (95 341) 
                                                           2014      (61 698)         -      (61 698)     (15 808)     (77 506)
  Revenue for external customers                           2015      637 644          -      637 644      431 021    1 068 665 
                                                           2014      680 026          -      680 026      572 619    1 252 645 
  Profit/(loss) from operations before exceptional items   2015       21 985          -       21 985        7 313       29 298 
                                                           2014       22 105          -       22 105      (49 548)     (27 443)
  Total assets                                             2015    1 213 534    242 060    1 455 594      514 306    1 969 900 
                                                           2014    1 540 469    650 126    2 190 595            -    2 190 595 
  Total liabilities                                        2015      356 256    301 180      657 436      209 455      866 891 
                                                           2014      630 313    398 956    1 029 269            -    1 029 269 
  Capex                                                    2015       27 819     12 144       39 963            -       39 963 
                                                           2014       36 033     19 449       55 482            -       55 482 
  Depreciation                                             2015       34 460          -       34 460            -       34 460 
                                                           2014       32 761          -       32 761       23 016       55 777 
   
* As part of the Group’s strategy to discontinue the operations forming part of the Flexibles division and rationalise the Rigids 
division, operations forming part of the Flexibles division and Rigids division which have been discontinued and classified as 
held-for-sale have been reflected as discontinued operations. 

SUPPLEMENTARY INFORMATION                                                                                                                      
                                                                                   Unaudited    Restated         Audited 
                                                                                  six months   Unaudited  financial year 
                                                                                       ended  six months           ended 
                                                                                   31 August       ended     28 February  
                                                                                        2015  31 August             2015 
                                                                                                    2014                 
                                                                                                                         
  Number of ordinary shares in issue (‘000)                                          135 131     135 131         135 131 
  Weighted average number of ordinary shares in issue (‘000)                         121 036     121 016         121 036 
  Fully diluted weighted average number of ordinary shares in issue (‘000)           121 036     121 234         121 531 
  Number of preference shares in issue (‘000)                                          1 500       1 500           1 500 
  Net asset value per share (cents)                                                      851         910             835 
  Net tangible asset value per share (cents)                                             794         818             772 
  Closing share price (cents)                                                            390         680             500 
  Market capitalisation (R million)                                                      527         919             676 
  Net interest-bearing debt as percentage of equity (%)                                  6,2        29,6            30,5 
  Net debt                                                                            63 619     325 792         307 711 
  Long-term interest-bearing debt                                                    125 049     260 000         233 077 
  Short-term interest-bearing debt                                                    67 145     114 522         143 518 
  Cash and cash equivalents                                                         (128 966)    (48 730)        (70 014) 
  Bank overdraft                                                                         391           -           1 130 
  Interest cover (before exceptional items)                                              1,9         2,1             2,9 
  Net working capital days                                                                30          40              31 
  Contingent liabilities                                                               6 971       6 971           6 571 
  Earnings before interest, taxation, depreciation and amortisation (“EBITDA”)                            
  - continuing operations                                                             56 445      54 866         127 410 
  Profit from operations before exceptional items                                     21 985      22 105          61 511 
  Depreciation                                                                        34 460      32 761          65 899 

NOTES

1. Basis of consolidation                                                                                                                                                                                                                                                                     
   These condensed consolidated annual financial statements for the half year ended 31 August 2015 have been prepared 
   in accordance with the framework concepts and the measurement and recognition requirements of International Financial 
   Reporting Standards (“IFRS”), the SAICA Financial Reporting Guide as issued by the Accounting Practices Committee and the 
   information required by IAS 34 Interim Financial Reporting. This report was compiled under the supervision of Manley
   Diedloff (Group Chief Financial Officer). The accounting policies used in the preparation of these results are in accordance 
   with IFRS and are consistent in all material respects with those used in the audited annual financial statements for the year 
   ended 28 February 2015.
2. Comparative figures                                                                                                                                                                                                                                                                             
   Discontinued operations                                                                                                                                                                                                                                                                            
   During the 2015 year, the Board classified Cinqplast Denver, Cinqpet, East Rand Plastics, Plastop Bronkhorstspruit 
   (all divisions of Astrapak Manufacturing Holdings Proprietary Limited) as discontinued operations. Knilam Packaging, Peninsula 
   Packaging (divisions of Astrapak Manufacturing Holdings Proprietary Limited), Barrier Film Converters Proprietary Limited and 
   Coralline Investments Proprietary Limited were classified as assets held-for-sale. The comparatives have been restated 
   accordingly. 
                                                          
  (R’000)                                                                    Unaudited    Unaudited          Audited 
                                                                            six months   six months   financial year 
                                                                                 ended        ended            ended 
                                                                             31 August    31 August      28 February  
                                                                                  2015         2014             2015                                                                                                                   
3. Property, plant and equipment                                                                                     
   Opening net carrying value                                                  734 314    1 225 125        1 225 125 
   Additions                                                                    39 963       55 482          158 038 
   Classified as assets held-for-sale                                                -            -         (424 625) 
   Disposals                                                                    (2 280)     (25 782)         (76 409) 
   Impairment                                                                        -      (15 513)         (38 625) 
   Depreciation                                                                (34 460)     (55 777)        (109 190) 
   Closing net carrying value                                                  737 537    1 183 535          734 314 
   Capital expenditure for the period                                           39 963       55 482          158 038 
   Capital commitments                                                                                               
   - contracted not spent                                                       89 059       33 006           34 680 
   - authorised not contracted                                                  45 795       28 335            9 433 
4. Investments and loans                                                                                             
   Vendor loan to Afripak Consumer Flexibles Proprietary                                              
   Limited in term of Flexibles disposal transaction                            50 999       50 936           50 888 
   Vendor loan to Tadbik Pack SA Proprietary Limited                                                  
   on the disposal Alex White & Company                                          2 255        5 158            3 895 
   Unlisted investment                                                              12           12               12 
   Investments and loans as at the end of the period                            53 266       56 106           54 795 
5. Inventories                                                                                   
   Inventories amounting to R2 216 395 
   (February 2015: R3 943) are carried at net realisable value.                                                                                                                                                                                                   
                                                                                                                      
   (R’000)                                                                   Unaudited     Unaudited          Audited 
                                                                            six months    six months   financial year 
                                                                                 ended         ended            ended 
                                                                             31 August     31 August      28 February  
                                                                                  2015          2014             2015                                                                                                                       
6.  Cash and cash equivalents                                                                                         
    Cash and cash equivalents                                                  128 966        48 730           70 014 
    Bank overdrafts                                                               (391)            -           (1 130) 
    Net cash and cash equivalents at the end of the period                     128 575        48 730           68 884 
7.  Assets held-for-sale and liabilities 
    relating to assets held-for-sale                                   
    The assets held-for-sale relate to the assets that are 
    being disposed of, rationalised and discontinued. Assets 
    classified as held-for-sale and liabilities associated 
    with assets held-for sale consist of the assets including 
    the related properties and liabilities of the following 
    entities:               
    Barrier Film Converters Proprietary Limited                                                                        
    Coralline Investments Proprietary Limited                                                                          
    Flexible divisions which are divisions of                                                           
    Astrapak Manufacturing Holdings Proprietary Limited                                                 
    Knilam Packaging                                                                                                   
    Peninsula Packaging                                                                                                
    Opening balance at the beginning of the period                              688 569        32 098           32 098 
    Inventory                                                                         -             -           93 458 
    Accounts receivable                                                               -             -          143 168 
    Deferred taxation assets                                                        158             -           20 320 
    Assets previously held-for-sale disposed of                                (174 421)      (24 814)         (25 100) 
    Revaluation of properties                                                         -             -           (4 813) 
    Property, plant and equipment classified as held-for-sale                         -             -          429 438 
    Assets held-for-sale at the end of the period                               514 306         7 284          688 569 
    Liabilities relating to assets held-for-sale consist                                                
    of the following:                                                                                                                                                                                                                            
    Opening balance as at the beginning of the period                           278 472        12 971           12 971 
    Interest-bearing debt                                                             -             -          101 984 
    Trade creditors                                                                   -             -          153 742 
    Deferred taxation liabilities                                                   402             -            9 775 
    Liabilities previously classified as held-for-sale                                                  
    disposed of or transferred                                                  (69 419)      (12 971)               - 
    Liabilities relating to assets held-for-sale at the                                                 
    end of the period                                                           209 455             -          278 472 
                                                                                                                                                                                                                                             
    (R’000)                                                                   Unaudited      Restated          Audited 
                                                                             six months     Unaudited   financial year 
                                                                                  ended    six months            ended 
                                                                              31 August         ended      28 February  
                                                                                   2015     31 August             2015 
                                                                                                 2014                                                                                                                                         
8.  Capital reserve                                                                                                    
    The capital reserve relates to employee share options                                               
    valued using the Black Scholes method and the cash                                                  
    financed stock plan.                                                                                
    Included in administrative and other expenses is                                                    
    IFRS 2 Share-based Payments income of R0,8 million                                                  
    (February 2015: R4,3 million).                                                                      
9.  Revenue                                                                                                            
    Revenue for the Group                                                       724 132       741 724        1 515 248 
    Transactions with other entities in the Group                               (86 488)       (61 698)       (126 642) 
    Revenue for external customers                                              637 644       680 026        1 388 606 
    Volume (in ‘000 tons)                                                        13 962        15 676           35 470 
10. Exceptional items                                                                                                  
    Impairment of goodwill                                                            -             -          (35 248) 
    Impairment of property, plant and equipment                                       -        (1 747)          (1 384) 
    Exceptional items                                                                 -        (1 747)         (36 632)                                                                                                                     
11. Profit from operations - continuing operations                                                                     
    Profit from continuing operations is arrived at after                                               
    taking the following into account:                                                                  
    Net profit on disposal of property, plant and equipment                         261           260            3 326 
    Profit on disposal of business                                                    -             -           15 165 
    Depreciation                                                                 34 460        32 761           65 899 
    IFRS 2 Share-based Payment income                                               785         4 314            4 340 
                                                                                                                                                                                                                                                                                                                                                                 
    (R’000)                                                                   Unaudited      Restated          Audited 
                                                                             six months     Unaudited   financial year 
                                                                                  ended    six months            ended 
                                                                              31 August         ended      28 February  
                                                                                   2015     31 August             2015 
                                                                                                 2014                                                                                                                                       
12. Profit/(loss) for the period from discontinued                                                     
    operations                                                                                                                                                                                                                                          
    Refer to note 2                                                                                                    
    Revenue                                                                     431 021       572 619        1 119 772 
    Cost of sales                                                              (379 623)     (510 529)      (1 015 934)
    Gross profit/(loss)                                                          51 398        62 090          103 838 
    Other income                                                                 15 300         2 958            5 855 
    Distribution and selling costs                                              (43 392)      (55 212)        (109 109)
    Administration and other operating expenses                                 (15 993)      (59 384)        (106 226)
    Profit/(loss) from operations before exceptional items                                              
    from discontinued operations                                                  7 313       (49 548)        (105 642) 
    Exceptional items                                                            30 547       (11 840)         (37 241)
    Profit/(loss) from operation for discontinued                                                       
    operations                                                                   37 860       (61 388)        (142 883)
    Net finance costs                                                            (3 420)       (5 800)         (11 659)
    Profit/(loss) before taxation from discontinued                                                     
    operations                                                                   34 440       (67 188)        (154 542) 
    Taxation (expense)/benefit                                                   (5 886)       18 803           43 270 
    Profit/(loss) after taxation from discontinued                                                      
    operations                                                                   28 554      (48 385)        (111 272) 
    Net cash flows incurred by discontinued operations                                                  
    for the period are represented below:                                                                              
    Operating cash inflow/(outflow)                                              50 951      (12 319)         (32 705) 
    Investing cash inflow/(outflow)                                             117 279      (10 033)         (42 078) 
    Financing cash (outflow)/inflow                                            (162 882)      22 161           82 887 
    Net increase/(decrease) in cash and cash equivalents                                                
    from discontinued operations                                                  5 348         (191)           8 104 
13. Profit/(loss) per ordinary share and headline loss 
    per ordinary share - basic and fully diluted                                                                         
    Profit/(loss) per ordinary share is calculated by dividing 
    the loss attributable to ordinary shareholders of 
    the parent by the weighted average number of shares 
    in issue over the period that the attributable loss 
    was generated.                                                                        
    Headline loss per ordinary share is calculated by 
    dividing the headline loss attributable to ordinary 
    shareholders of the parent by the weighted average 
    number of shares in issue over the period that the 
    headline loss was generated.                                                          
    Fully diluted loss and headline loss per ordinary share 
    is determined by adjusting the weighted average number 
    of shares in issue over the period to assume conversion 
    of all dilutive ordinary shares, being shares issued in 
    terms of the share incentive trust and the cash financed 
    stock plan.
14. Subsequent events                                                                                                                                                                                                                                                                                 
    No facts or circumstances material to the appreciation 
    of this report have occurred between 31 August 2015 and 
    the date of this report.                                                                                                                                                            


Board of Directors: P Langeni* (Chair), R Moore (Chief Executive Officer), M Diedloff 
(Group Managing Director and Chief Financial Officer), P C Botha*, C McDougall*, 
G Z Steffens*, T V Mokgatlha*                                    *Non-executive 

Company Secretary: V Mahadeo 

Registered Office: 5 Kruger Street, Denver, 2094 › PO Box 75769, Gardenview, 2047, South Africa 
Tel +27 11 615 8011  Fax +27 11 615 9790 

Registrar: Computershare Investor Services Proprietary Limited 
Ground Floor, 70 Marshall Street, Johannesburg, 2001 › PO Box 61051, Marshalltown, 2107 

Sponsor: Rand Merchant Bank (a division of FirstRand Bank Limited) 

Operating entities
Rigids Division: Consupaq › JJ Precision Plastics › Marcom Plastics › PAK 2000 › Plastech 
› Plastform › Plastop (KwaZulu-Natal) › Thermopac › Weener - Plastop

For more information on our business please go to: www.astrapak.co.za

Date: 30/09/2015 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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