Nampak Zimbabwe’s turnover for the first quarter is 8 percent ahead of budget, but only 2 percent up from the first quarter of last year, chief executive Mr John Van Gend has said.
Giving a trading update at the company’s AGM yesterday, Mr Van Gend said the increase in turnover was mainly driven by high temperatures in November and December which resulted in more companies acquiring more beverage bottles for packing.
“As regards trading for the first quarter, over all we are ahead of our budget in terms of turnover by approx eight percent, though we are only 2 percent ahead of the first quarter last year.
“The improved top line is largely a result of the very high temperatures in November and December which drove the demand for beverages,” he said.
He said margins remain under pressure both from increased competition and from the aforementioned imports.
According to Mr Van Gend, all the units are trading profitability while treasury and cash flow management remains a key focus.
“To date we have started on capital expenditure projects of a little over $3 million, $2,3 million of this being for new 1881 closure line Megapak, which will be the first of its kind in Zimbabwe.
“A further $3—4 million worth of capital expansion projects are currently being looked at and if final approval on these projects is received this could push our spend on capex to between $6,7 million and $7 million this year,” he said. — BH24.