Wrap Text
Preliminary Summarised Consolidated Results and Cash Dividend Declaration for the Year ended 31 December 2025
Mpact Limited
(Incorporated in the Republic of South Africa)
(Company registration number 2004/025229/06)
Income tax number: 9003862175
JSE Share Code: MPT
JSE ISIN: ZAE 000156501
A2X Share Code: MPT
("Mpact" or "the Group" or "the Company")
PRELIMINARY SUMMARISED CONSOLIDATED RESULTS AND CASH DIVIDEND DECLARATION
FOR THE YEAR ENDED 31 DECEMBER 2025
CONTINUING OPERATIONS
Key financial data
- Net asset value per share increased by 6% to R37.76 from December 2024
- Revenue up 5% to R14 billion
- Underlying EBITDA of R1.5 billion and EBIT of R914 million, in line with prior period
- Headline earnings per share of 307 cents (2024: 324 cents)
- Total dividend per share of 60 cents
Bruce Strong, Mpact's Chief Executive Officer said, "2025 was a demanding year, marked by sustained
economic pressure and difficult trading conditions across several of our markets. While overall performance
was mixed, we made progress in strengthening Mpact's strategic position through disciplined capital
investment, portfolio optimisation and operational improvements. With the bulk of our major investment
cycle completed, including the commissioning of the Mkhondo mill upgrade, we are shifting focus to
converting the asset base into stronger earnings, cash generation and improved returns. Portfolio actions
already taken, together with capital discipline and operational efficiency initiatives, are intended to
strengthen the balance sheet and support sustainable shareholder returns as we move through 2026."
Overview
The Group's results for the year ended 31 December 2025 were delivered in an operating environment that
remained demanding, with mixed performances across the portfolio, but affirmed the strategic choices
made in recent years. Macroeconomic conditions were characterised by a weak domestic economy,
persistent infrastructure constraints and elevated geopolitical uncertainty. From an industry perspective,
global oversupply of containerboard and cartonboard led to lower margins and intensified competition
from imports. These headwinds were offset by robust growth in the fruit sector and improved efficiencies
across most of Mpact's businesses. Record citrus export volumes in 2025 reinforced the structural
attractiveness of this market and validated the Group's strategic focus on investing in export oriented
growth sectors.
Against this backdrop, Mpact continued to execute its capital investment and portfolio optimisation
projects with discipline, aimed at unlocking long-term shareholder value, and delivered an improved
performance in the second half of the year.
The Group achieved good volume growth in containerboard, citrus cartons, jumbo bins, agricultural crates,
and Plastics FMCG (excluding Wadeville), supported by recent investments at the Felixton mill, Bins &
Crates and Paper Converting operations. These gains were partially offset by lower volumes in
cartonboard, industrial corrugated packaging, Plastics FMCG Wadeville and beverage crates.
In the Paper business, sales volumes increased, contributing to higher revenue, but margin pressure
resulted in a decline in operating profit. The reduction in Paper's profitability is mostly attributable to Paper
Manufacturing, whereas the Paper Converting business delivered a notable increase in operating profit in
a competitive market. Despite lower sales volumes, the Plastics business delivered a significant increase
in operating profit, supported by an improved product mix, lower input costs and improved performances
from all the Plastics businesses.
Mpact made meaningful progress on its strategic development during the year. The multi-year upgrade of
the Mkhondo mill was substantially completed, with the new pulp digester and sodium-lignosulphonate
(SLS) plant commissioned and capitalised. The pulp mill is already delivering improved efficiency, while the
SLS plant is undergoing optimisation, with meaningful output expected in the second half of 2026. This
project supports Mpact's strategy of portfolio enhancement and strengthens its position in export-oriented
agricultural packaging. The sale of Versapak in November 2024 reflects disciplined capital management
and portfolio optimisation. The restructuring of FMCG Wadeville is largely complete, with the business now
focused on higher-margin products and better aligned with long-term market trends. In early 2026, Mpact
announced the contemplated closure of the Springs mill, following sustained import pressure, utility
disruptions and customer attrition. This action reflects the Group's commitment to disciplined portfolio
management and is expected to be cash positive and margin accretive over time. In support of its broader
energy resilience and cost-efficiency objectives, the Group's solar PV generation capacity reached
approximately 18MWp in 2025, delivering electricity cost savings of over R45 million compared to power
that would otherwise have been purchased from municipalities or Eskom.
These initiatives mark a clear shift from investment-led growth to disciplined value realisation, with the
Group increasingly focused on optimising returns from its modernised asset base, improving cash
generation and delivering sustainable shareholder value.
Financial review
Group revenue from continuing operations for the year ended 31 December 2025 increased by 5%
compared to the prior year to R14.0 billion (2024: R13.3 billion), primarily driven by increased
containerboard and agricultural packaging sales volumes in the Paper business.
Revenue growth in the Paper business was offset by higher variable costs, driven by increases in external
paper purchases and recovered paper prices, as well as higher energy costs. In the Plastics business,
lower sales volumes were more than offset by higher average selling prices and a more favourable product
mix, which led to an overall increase in the Group's gross profit of 3%.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 1.2% to
R1.519 billion (2024: R1.501 billion) while underlying operating profit (EBIT) decreased by 1.0% to
R914 million (2024: R923 million) due to an increase in depreciation of plant and equipment.
Return on capital employed (ROCE) was 10.9% (2024: 11.7%), primarily due to the substantial recent
capital investment in Mkhondo, which has not yet contributed to earnings. The majority of the Mkhondo
project was capitalised on 1 December 2025.
Paper business
Revenue in the Paper business increased by 7.4% to R11.8 billion (2024: R11.0 billion) due to increases of
4.3% in sales volumes and 1.6% in average selling prices, and the acquisition of Seyfert. Sales volumes
increased on the back of good growth in containerboard and fruit packaging.
Gross profit was up approximately 1.7%, with the benefits of increased sales volumes offset by an increase
in external containerboard purchases, higher recovered paper prices and energy costs. The gross profit
margin declined by 2.1 percentage points. Recovered paper prices were up significantly compared to the
prior year due to export demand, especially from India.
Underlying operating profit declined to R804 million (2024: R932 million) due to lower margins and the
under-recovery of higher fixed costs, which increased by 5.9% primarily due to the Mkhondo mill upgrade
project and extensive commercial downtime in the comparable period.
The global paper industry is in a prolonged downturn, with structural overcapacity across most paper
grades continuing to depress selling prices, a condition expected to persist for the foreseeable future. In
the local market, this was compounded by weak demand, a stronger rand and above-inflationary increases
in utility costs, making imported paper increasingly competitive. The recent upgrades at our Felixton and
Mkhondo paper mills have strengthened the competitiveness of our containerboard products, although
margins remain under pressure.
Containerboard sales volumes increased by 8.8% following successful interventions at the end of 2024 to
increase exports and displace imports in the local market, utilising the improved competitiveness of the
Felixton mill. No commercial downtime was incurred at Felixton or Mkhondo during the period. Performance
at the Mkhondo mill was impacted by construction related to the upgrade project which is now complete.
We anticipate that the new SLS plant will start to make a meaningful contribution from the second half of
2026.
Cartonboard sales volumes from the Springs mill declined by 2.3% due to subdued local demand and
import competition. The mill took 32 days of commercial downtime in the period to manage inventory
levels, compared to nine days in 2024. In addition, the mill incurred 21 days of downtime due to external
utility supply interruptions (2024: 27 days). In light of these persistent structural challenges, Mpact recently
announced the contemplated closure of Springs mill.
Paper Converting's revenue increased by 3.2% compared to the prior period, with good growth in the fruit
sector, partially offset by lower industrial sales due to weak demand. Operating profit increased on the
back of a better sales mix and improved efficiencies. The outlook for fruit exports remains positive and we
expect to benefit from further efficiency improvements across the Paper Converting business in 2026. On
1 August 2025, Mpact increased its shareholding in Seyfert Corrugated Western Cape (Pty) Ltd from 49%
to 74%. Seyfert manufactures and distributes corrugated packaging products, predominantly to the
agricultural sector.
Plastics business
Revenue in the Plastics business decreased by 7.5% to R2.16 billion (2024: R2.34 billion), largely due to
lower sales volumes at FMCG Wadeville, as anticipated, as well as lower beverage crate sales in Bins &
Crates. However, this was more than offset by a favourable product mix and higher average selling prices
which resulted in a 7.8% improvement in gross profit.
Underlying operating profit doubled to R179 million (2024: R89 million) because of an increase in gross
profit and a reduction in fixed costs. There was a concerted effort to reduce controllable costs in Bins &
Crates and FMCG Wadeville given lower demand from the beverage sector.
Bins & Crates continued to achieve good volume growth in agricultural crates and jumbo bins, which was
more than offset by lower beverage crate and wheelie bin sales, the latter due to weak municipal demand.
Notwithstanding a decrease in revenue, profitability improved significantly, supported by an improved mix
and efficiencies.
FMCG Wadeville's revenue declined by 21.8%, primarily reflecting the portfolio transition following the exit
of two large contracts in June 2024. Performance was further impacted by a slower-than-anticipated roll
out of new customer projects and a vinegar shortage in the first half of 2025, which disrupted customers'
mayonnaise production. While the business achieved an improved result in 2025, performance remains
well below expectations, and a much-improved outcome is anticipated in 2026.
The rest of the FMCG business increased sales volumes and operating profit, driven by customer projects
and growing export activity by some customers into other African markets and the Middle East. This
resulted in a 39.2% increase in underlying operating profit. The businesses continue to find new
opportunities and the outlook remains positive.
Net finance costs
Net finance costs decreased to R245 million (2024: R297 million) mainly due to lower interest rates and
R71 million (2024: R47 million) of interest costs capitalised to the Mkhondo mill project.
Taxation
The effective tax rate for continuing operations of 20.8% is lower than the statutory rate due to the
recognition of a deferred tax asset of R43 million attributable to previously unrecognised tax losses in
Bins & Crates. As at the end of 2025, there are no unrecognised tax losses remaining at any of the Group
companies.
Earnings per share
Basic earnings per share for continuing operations increased marginally to 329.3 cents (December 2024:
327.1 cents). Underlying earnings per share declined to 308.5 cents (December 2024: 325.8 cents), while
headline earnings per share decreased to 306.6 cents (December 2024: 323.6 cents).
Basic earnings is higher than underlying and headline earnings, as it includes a gain on the remeasurement
of our previously held investment in Seyfert.
Net debt
Net debt of R2.51 billion is higher than the prior year (December 2024: R2.37 billion), with cash generated
from operations being offset by working capital outflows, capital investments, and dividend payments.
Gearing of 28.7% was in line with the prior period (2024: 28.8%). In November 2025, the Group refinanced
its bank debt facilities of R4.0 billion, comprising R3.0 billion of new revolving credit facilities with
maturities ranging from three to five years, and R1.0 billion of 367 day notice and overdraft facilities.
SUBSEQUENT EVENTS
On 2 February 2026, the Board of Directors approved the commencement of a section 189A process in
terms of the Labour Relations Act 66 of 1995 (LRA) in view of the contemplated discontinuation of
operations at the Springs mill, which forms part of the Paper reporting segment. Subject to the
consideration of alternatives, production at the Springs mill is likely to discontinue once all open orders
have been completed. Based on current information, the mill is likely to run until the end of May 2026. The
Springs mill currently employs 377 people. Further information is available in the SENS announcement
issued on 3 February 2026.
An extract of the key financial information relating to the Springs mill for the year ended 31 December
2025 is set out below:
- Plant and equipment (including capital spares): R207 million (2024: R186 million)
- Current assets (inventories, trade and other receivables, cash and cash equivalents): R431 million (2024:
R468 million)
- Current liabilities (trade and other payables): R223 million (2024: R297 million)
- Revenue: R1,753 million (2024: R1,740 million)
- Operating profit before tax: R2 million (2024: R32 million)
The consultation process in terms of section 189A of the LRA has commenced. The outcome of this
process remains uncertain and further announcements will be made, as may be required.
DISCONTINUED OPERATION
The sale of Versapak was concluded in November 2024 and all working capital has been recovered.
OUTLOOK
South Africa's economic environment remains constrained, with few signs of meaningful improvement in
the short term. Consumers continue to face intense financial pressure affecting demand, while widespread
municipal infrastructure shortcomings are driving additional costs across our manufacturing operations.
At the same time, an influx of imported products is placing strain on a number of domestic industries,
including many of Mpact's customers. Combined with persistent fragility in the global economy, these
factors are expected to contribute to another challenging operating period for the year ending December
2026.
Despite these headwinds, Mpact's ongoing optimisation initiatives and recent capital projects are
enhancing the Group's resilience and competitiveness. The Group continues to benefit from robust
demand in the agricultural segment, particularly within our Paper Converting and Bins & Crates businesses.
The Citrus Growers Association continues to forecast further growth in citrus exports over the medium
term, following the record 2025 season.
The completion of the Mkhondo mill upgrade project marks a significant milestone in enhancing the Paper
Manufacturing business's capabilities and product offering to support future growth. However, as the plant
remains in its optimisation phase, the additional depreciation and interest charges arising from the recent
capitalisation of the project are not expected to be fully offset by incremental revenue in 2026. The
contemplated closure of the Springs mill, if implemented, is expected to be cash flow positive for the
Group. The impact on operating profit is anticipated to be immaterial, excluding potential non-recurring
closure costs and impairments.
We anticipate a stronger 2026 performance from the Plastics business relative to last year. Both FMCG
Wadeville and Bins & Crates have completed their cost-base restructures, and the combination of these
efficiency gains with increased sales volumes, is expected to support healthier margins across the division.
With the Group's major investment cycle now largely complete, Mpact's strategic focus has shifted
decisively from capital expansion to realising the full potential of its modernised asset base. Key priorities
for 2026 include optimising returns from recent investments, accelerating the commercialisation of SLS,
driving efficiency improvements, and advancing targeted portfolio optimisation. The Group will continue to
prioritise cash generation, working capital discipline and margin improvement, while maintaining strict
capital allocation principles.
While the external environment remains uncertain, Mpact enters 2026 with a more focused, better-
balanced portfolio and a strengthened operating platform. The Group is well positioned to navigate
near-term challenges and deliver improved returns over time through disciplined execution, operational
excellence and a clear commitment to long-term value creation.
BOARD CHANGES
Effective 29 May 2025, Mr AJ Phillips retired as a director of the Company, and accordingly, as the
Chairman of the Board, member of the Remuneration Committee and the Chairman of the Nomination
Committee.
Mr PCS Luthuli was appointed Chairman of the Board, effective 29 May 2025, in accordance with the
Board's succession plan. Mr S Mayet was appointed to the Board as an Independent Non-Executive
Director with effect from 10 April 2025.
The following changes were made to the composition of the Board committees with effect from 5 June
2025:
- Mr DG Wilson was appointed as the Chairman of the Remuneration Committee;
- Ms FC Futwa was appointed as a member of the Social and Ethics Committee;
- Ms ABA Conrad was appointed as a member of the Remuneration and Nomination Committee; and
- Mr S Mayet was appointed as the Chairman of the Audit and Risk Committee.
Effective 15 September 2025, Mr Clifford David Raphiri was appointed to the Board as an Independent
Non-Executive Director.
Ms Donna Dickson resigned as Group Company Secretary effective 31 January 2026. Effective 1 February
2026, CorpStat Governance Services (Proprietary) Limited was appointed as the acting Company Secretary
of the Group.
DIVIDENDS
The Board declared a final gross cash dividend of 30 cents per ordinary share for the year ended
31 December 2025 (2024: 75 cents per ordinary share). A dividend withholding tax of 20% will be
applicable to all shareholders who are not exempt, which equates to a dividend of 24 cents per ordinary
share net of dividend withholding tax. The dividend has been declared from income reserves.
The Company's total number of issued ordinary shares at the date of this announcement is 149,453,688.
Mpact's income tax reference number is 9003862175.
Salient dates for the cash dividend distribution
Event 2026
Publication of dividend declaration Monday, 9 March
Last day of trade to receive a dividend Tuesday, 7 April
Shares commence trading "ex" dividend Wednesday, 8 April
Record date Friday, 10 April
Payment date Monday, 13 April
Share certificates may not be dematerialised or re-materialised between Wednesday, 8 April 2026 and
Friday, 10 April 2026, both days inclusive.
FINANCIAL SUMMARY
Continuing operations Total operations
Year ended Year ended Year ended Year ended
31 December 31 December 31 December 31 December
R'million 2025 2024 2025 2024
Revenue 13,955 13,291 13,955 14,146
Underlying1 EBITDA 1,519 1,501 1,519 1,565
Underlying1 EBIT 914 923 914 986
Underlying profit before tax2 683 645 683 708
ROCE 10.9% 11.7% 10.9% 12.3%
Basic EPS (cents) 329.3 327.1 329.3 342.3
Basic HEPS (cents) 306.6 323.6 306.6 340.2
Underlying HEPS (cents) 308.5 325.8 308.5 342.4
Net debt R2,514 million (December 2024: R2,371 million)
Total gross dividend per share (cents) 60 cents (December 2024: 105 cents)
1. Underlying profit is the Group's operating profit before special items.
2. Underlying profit before tax is the Group's profit before tax and before special items.
The Group presents certain measures of financial performance, position or cash flows that are not defined
or specified according to International Financial Reporting Standards (IFRS). These items are referred to as
special items and are defined in the Group accounting policies included in the condensed Consolidated
Interim Financial Statements for the year ended 31 December 2025.
This short-form announcement is the responsibility of the directors and is only a summary of the
information in the Audited Annual Financial Statements and do not contain full or complete details. This
short-form announcement has not been reviewed or audited by PWC, the Company's external auditors.
Any investment decision should be based on the Audited Financial Statements which includes the
unmodified Group Audit Report (with Key Audit Matters) and which is available on our website:
https://www.mpact.co.za/investor-relations/financial-results/2025/GROUPAFSFY2025.pdf, and on
https://senspdf.jse.co.za/documents/2026/jse/isse/mpt/AFSFY2025.pdf
The Company Audit Report and the Company Annual Financial Statements can be accessed at:
https://www.mpact.co.za/investor-relations/financial-results/2025/COMPANYAFSFY2025.pdf
The full audited announcement is also available for inspection at our registered offices at no charge during
office hours.
PCS Luthuli
Chairman
BW Strong
Chief Executive Officer
9 March 2026
COMPANY PROFILE
Mpact is the largest paper and plastics packaging and recycling business in southern Africa, with a
vertically integrated business model that spans the full packaging value chain - from raw material
production and conversion to recycling and beneficiation. The Group employs 4,730 people and generated
revenue of R14.0 billion for the year ended 31 December 2025.
Mpact operates 39 sites, including 22 manufacturing facilities and 14 recycling operations, strategically
located to ensure proximity to customers. This footprint enables faster response times, reduced transport
costs, and operational efficiencies. Approximately 89% of the Group's revenue is derived from sales in
South Africa, with the remainder primarily from customers in other African markets.
The Group's integrated model is uniquely focused on closing the loop in paper and plastic packaging
through its extensive recycling operations and investment in beneficiation technologies. In 2025, Mpact
collected more than 600 million kilograms of recyclables, reinforcing its commitment to circular economy
principles and sustainable resource use.
Mpact's strong customer relationships, deep sector knowledge, and focus on innovation underpin its
ability to deliver fit-for-purpose, sustainable packaging solutions. The Group continues to invest in product
development, operational efficiency, and renewable energy, such as its 18MWp solar PV capacity, to
enhance competitiveness and reduce environmental impact.
With a sharpened strategic focus and a modernised asset base, Mpact is well positioned to support its
customers' evolving needs while delivering long-term value to stakeholders through responsible growth
and disciplined execution.
DIRECTORS
Independent non-executive:
PCS Luthuli (Chairman)
M Makanjee
DG Wilson
ABA Conrad
FC Futwa
S Mayet
CD Raphiri
Executive:
BW Strong (Chief Executive Officer)
JJ Snyman (Chief Financial Officer)
Company secretary:
CorpStat Governance Services (Proprietary) Limited
Registered office:
4th Floor, No. 3 Melrose Boulevard, Melrose Arch, 2196
Transfer secretaries:
JSE Investor Services (Pty) Limited
One Exchange Square, 2 Gwen Lane
Sandton, 2196
Sponsors:
The Standard Bank of South Africa Limited
30 Baker Street, Rosebank, 2196
(PO Box 61344, Marshalltown, 2107)
Auditors:
PricewaterhouseCoopers Inc. (PwC)
4 Lisbon Lane, Waterfall City, Jukskei View, 2090
(Private Bag X36, Sunninghill, 2157)
Date: 09-03-2026 08:00:00
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