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Packaging firm, Nampak Zimbabwe Limited (Nampak) recorded a drop of over 40 percent in after tax profit to $838 000 for the half-year ended March, 2017, hit by depressed product demand.

The firm posted a net profit of $1,5 million in the comparable period last year. Nampak is the parent firm of Hunyani Paper and Packaging, MegaPak and Carnaud Metalbox, and also has Softex Tissues as an associate company.

“Group revenue for the first half was nine percent below prior year, as a result of depressed demand in the plastics and metals segment,” the Zimbabwe Stock Exchange listed company said.

Its directors opted not to declare an interim dividend citing “the current uncertainty in the trading environment.”

Earnings per share slid to 0.11 from 0.20 on account of reduced profitability. In the period, MegaPak saw its revenues slide 34 percent while CanaurdMetal Box recorded a 23 percent drop in takings due to slow demand.

Hunyani was the only subsidiary that saw its revenues go up by 27 percent. Nampak said its paper division benefited from import restrictions under Statutory Instrument 64 and improved demand from tobacco farmers.

The group spent a total of$1,05 million on plant and machinery and said it will in the outlook focus on cost containment and cash management. Current foreign currency shortages were also impacting on its ability to settle its liabilities, the packaging firm said. — New Ziana.