Nampak’s trading income for Africa increases 60%

Outgoing Nampak CEO Andrew Marshall said on Thursday that he had achieved his vision to cement Nampak in the African continent.

Mr Marshall is to retire in March next year. Speaking about the group’s financial results for the year to December, which were released on Thursday, Mr Marshall said Nampak’s African operations in Angola and Nigeria especially, had seen strong returns.

Trading income from Africa increased 60% to R506m on revenue growth of 32%.

Mr Marshall said its Angola beverage can facility operated at full capacity for most of the year and "produced very pleasing results which exceeded expectations".

The trading margin in the rest of Africa improved to 18.4% from 15.1% in the previous year. Including exports from SA, the rest of Africa now accounted for 36% of the group’s total trading profit.

Nampak recently announced the acquisition of the Alucan beverage can operation in Nigeria for $301m and Nampak’s board approved the installation of a second beverage can line in Angola for $100m.

Mr Marshall said Nampak was keen to buy into various growth opportunities. "Apart from the new beverage can factory in Nigeria and the additional beverage can line in Angola, we are also exploring a number of other growth prospects.

He said investing in Africa proved to be the right strategy for Nampak and that it was excited by the many growth opportunities still there.

Looking at local operations, the first aluminium beverage can production line in South Africa was commissioned during 2013 and the conversion of other lines at its Springs factory to aluminium from tinplate, was on track.

Nampak’s group return on equity was 22% and its net debt to equity decreased to 22%.

Mr Marshall said the group was well-placed to pursue growth opportunities.