Wrap Text
Summary of condensed financial results for the six months ended 31 March 2020
Nampak Limited
(Registration number 1968/008070/06)
(Incorporated in the Republic of South Africa)
Share code: NPK
ISIN: ZAE 000071676
("Nampak" or the "Group" or the "Company")
SUMMARY OF CONDENSED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2020
SALIENT FEATURES
- Headline earnings per share for continuing and discontinued operations of 0.3 cents
(2019: 115.7 cents)
- R2.0bn gross proceeds from asset disposals
- R1.6bn for Glass and R0.4bn (Eur28m) for Cartons Nigeria
- Nampak Plastics Europe sold
- Cash generated from total operations of R667m, up 277%
- Continued liquidity - strong cash transfers of R1.6bn from Angola and Nigeria
KEY FINANCIAL INDICATORS FOR CONTINUING OPERATIONS
- Revenue decreased by 17% to R6.5bn
- Trading profit reduced by 39% to R633m
- Impairments of R3.0bn relating to Angola and Nigeria
- Headline earnings per share of 7.0 cents
- Loss per share of 408.9 cents, including impairment charge of R3.0bn
CEO'S COMMENTARY
Overall weaker economic demand in our key markets, continued pressure on consumers' disposable income
and net impairments of R3.0 billion limited our results for the period. The Metals division was the
most negatively impacted, while the Paper division was able to improve its trading margins. Although
the Nigerian outlook has since deteriorated, Bevcan Nigeria performed pleasingly as volumes continued
to grow, but the performance of Divfood, Bevcan Angola and Bevcan South Africa were below expectations,
as a result of total market contractions and loss of a key customer during the previous year. The
South African Plastics business returned to profitability as its turnaround strategy continued to pay
off and performed in line with expectations.
R2.0 billion gross proceeds from the disposal of non-core assets and healthy cash transfers from
Angola and Nigeria during this period facilitated the reduction of debt, as the Group continued to
rationalise its portfolio. Net proceeds, after costs to sell and contractual true up costs, amounted
to R1.6 billion.
The Group's market capitalisation remains below its net asset value. A detailed review of the
value-in-use for the Group's various cash generating units was performed. These valuations have taken
into account the margin pressure resulting from over-capacity in Nigeria, the significantly reduced
spending power of the Angolan consumer as wage inflation has been lagging the devaluation in the
Kwanza, the recent collapse of the oil price and the impact of COVID-19 on the market growth potential
in Angola and Nigeria. Our assessments have resulted in impairments of R3.0 billion with R2.2 billion
attributable to Nigerian goodwill and R0.8 billion to an asset impairment in Angola.
Nampak's focus is on limiting the added pressure posed by the COVID-19 pandemic on already burdened
economies, by prioritising cost saving measures across the Group, preserving cash, reducing capital
expenditure and assessing alternatives to improve profitability, in order to competitively reposition
our business after the pandemic.
Our strategic objectives include a significant simplification of the business, thereby reducing our
overall risk profile and aligning funding structures with the underlying value creation within each
business unit. We aim to reduce overall earnings volatility through optimisation of our regional
footprint, our business portfolio and also our capital structure.
GROUP FINANCIAL PERFORMANCE FOR CONTINUING OPERATIONS
R million H1 2020 H1 2019 % change
Revenue 6 519 7 882 (17)
Trading profit 633 1 032 (39)
Operating profit 287 894 (68)
Profit before net impairments 117 742 (84)
Net impairment (losses)/reversals (3 040) 43 (+100)
(Loss)/profit before taxation (2 923) 785 (+100)
(Loss)/profit for the period (2 858) 844 (+100)
Cash generated from operations (1) 667 177 +100
(Loss)/earnings per share (cents) (408.9) 137.4 (+100)
Headline earnings per share (cents) 7.0 130.0 (95)
(1) From total operations
This short form announcement is the responsibility of the directors and is only a summary of the
information in the full announcement, which is available on the JSE website
https://senspdf.jse.co.za/documents/2020/JSE/isse/NPK/HY2020.pdf
and on Nampak's website www.nampak.com/Investors/Financial-Information under the 2020 financial year.
Any investment decisions made by investors and/or shareholders should be based on consideration of the
full announcement as a whole. The short form announcement has not been audited.
Copies of the full announcement may also be requested from the Group Company Secretary,
Ilse van Lochem on Ilse.vanLochem@nampak.com, alternatively collected from the company's registered
office, at no charge, during office hours.
Interim results presentation via webcast
The presentation of the Group's interim results hosted by Nampak CEO, Erik Smuts and CFO,
Glenn Fullerton may be viewed on a webcast at 09h00 Central African Time (GMT+2) on 29 May 2020.
The webcast link is www.corpcam.com/Nampak29052020.
Bryanston
29 May 2020
Sponsor
UBS South Africa (Pty) Ltd
Registered office
Nampak House, Hampton Office Park
20 Georgian Crescent East
Bryanston, Sandton
2191
South Africa
PO Box 69983
Sandton
2021
South Africa
Telephone
+27 11 719 6300
Website
www.nampak.com
Date: 29-05-2020 07:05:00
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