ABRIDGED CONSOLIDATED UNREVIEWED RESULTS
FOR THE SIX MONTHS ENDED 31 MARCH 2024
ABRIDGED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 31 MARCH 2024
INFLATION ADJUSTED | HISTORICAL * | |||
6 Months | 6 Months | 6 Months | 6 Months | |
31 March | 31 March | 31 March | 31 March | |
2024 | 2023 | 2024 | 2023 | |
ZW$ 000 | ZW$ 000 | ZW$ 000 | ZW$ 000 | |
Unaudited | Reviewed | Unaudited | Unaudited | |
Revenue | 976 152 126 1 063 208 497 | 427 131 428 | 39 037 593 | |
Raw materials and consumables used | (551 823 470) | (575 562 019) | (187 562 931) | (19 839 002) |
Selling and distribution expenses | (3 306 189) | (7 733 756) | (1 001 646) | ( 289 849) |
Depreciation and amortisation expenses | (12 008 258) | (7 435 434) | ( 940 475) | ( 117 576) |
Employee expenses | (150 054 095) | (131 646 719) | (71 226 537) | (4 825 885) |
Other operating expenses | (151 665 235) | (149 746 810) | (75 424 559) | (5 534 678) |
Other operating income | 5 363 137 | 5 285 955 | 2 665 264 | 418 553 |
Trading income | 112 658 016 | 196 369 714 | 93 640 544 | 8 849 156 |
Other material income | 263 970 963 | 58 690 755 | 162 662 954 | 2 141 386 |
Net monetary loss on hyperination | (153 185 735) | (85 471 861) | - | - |
Operating prot | 223 443 244 | 169 588 608 | 256 303 498 | 10 990 542 |
Finance income | 28 731 | 232 216 | 12 495 | 8 392 |
Finance costs | (147 540) | (339 945) | (64 323) | (12 504) |
Prot before tax | 223 324 435 | 169 480 879 | 256 251 670 | 10 986 430 |
Income tax expense | (156 873 740) | (83 309 231) | (42 906 192) | (2 980 701) |
Prot for the period | 66 450 695 | 86 171 648 | 213 345 478 | 8 005 729 |
Other comprehensive income | - | - | - | - |
Total comprehensive income | 66 450 695 | 86 171 648 | 213 345 478 | 8 005 729 |
Earnings per ordinary share (cents) | 8 793.87 | 11 403.67 | 28 233.44 | 1 059.45 |
Ordinary shares in issue at reporting date | 755 648 101 | 755 648 101 | 755 648 101 | 755 648 101 |
* The historical amounts are shown as supplementary information. This information does not comply with the International Financial |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (continued)
FOR THE SIX MONTHS ENDED 31 MARCH 2024
Non | ||||
Share Capital | Distributable | Retained | ||
and Premium | Reserve | earnings | Total | |
ZW$ 000 | ZW$ 000 | ZW$ 000 | ZW$ 000 | |
HISTORICAL * | ||||
Balance as at 30 September 2022 | 24 810 | 752 343 | 10 116 893 | 10 894 046 |
Prot for the period | - | - | 8 005 729 | 8 005 729 |
Interim Dividend Declared | - | - | ( 758 897) | ( 758 897) |
Balance as at 31 March 2023 | 24 810 | 752 343 | 17 363 725 | 18 140 878 |
Prot for the period | - | - | 91 816 655 | 91 816 655 |
Dividend declared and paid | - | - | (1 209 037) | (1 209 037) |
Balance as at 30 September 2023 | 24 810 | 752 343 | 107 971 343 | 108 748 496 |
Prot for the period | - | - | 213 345 478 | 213 345 478 |
Dividend declared and paid | - | - | (9 070 205) | (9 070 205) |
Balance as at 31 March 2024 | 24 810 | 752 343 | 312 246 616 | 313 023 769 |
- The historical amounts are shown as supplementary information. This information does not comply with the International Financial Reporting Standards in that it has not taken into account the requirements of International Accounting Standard 29 - Financial Reporting for Hyperinationary Economies.
ABRIDGED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 MARCH 2024
INFLATION ADJUSTED | HISTORICAL * | |||
6 Months | 6 Months | 6 Months | 6 Months | |
31 March | 31 March | 31 March | 31 March | |
2024 | 2023 | 2024 | 2023 | |
ZW$ 000 | ZW$ 000 | ZW$ 000 | ZW$ 000 | |
Unaudited | Reviewed | Unaudited | Unaudited | |
Cash generated from operating activities | 217 048 219 | 155 344 550 | 240 257 402 | 10 836 979 |
(171 035 028) | (103 556 048) | (201 102 698) | (8 597 097) |
Reporting Standards in that it has not taken into account the requirements of International Accounting Standard 29 - Financial Reporting |
for Hyperinationary Economies. |
ABRIDGED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024
INFLATION ADJUSTED | HISTORICAL * |
Working capital changes
Net nance costs
Tax paid
Net cash generated from operating activities
Investing activities
(38 448 307) | (50 837 852) | (159 210 039) | (6 375 926) | |
( 118 809) | ( 107 722) | ( 51 828) | ( 4 112) | |
(132 467 912) | (52 610 474) | (41 840 831) | (2 217 059) | |
46 013 191 | 51 788 502 | 39 154 704 | 2 239 882 | |
(53 005 521) | (21 755 366) | (23 458 929) | (783 340) |
ASSETS
Non-current assets
Property, plant and equipment Right of use assets Intangible assets Biological assets
Investments
Deferred tax asset
Current assets
Inventories
As at | As at | As at | As at | ||
31 March 30 September | 31 March 30 September | ||||
2024 | 2023 | 2024 | 2023 | ||
ZW$ 000 | ZW$ 000 | ZW$ 000 | ZW$ 000 | ||
Unaudited | Audited | Unaudited | Unaudited | ||
181 445 466 | 145 774 218 | 59 112 164 | 11 307 210 | ||
176 811 687 | 132 500 104 | 29 232 960 | 6 484 415 | ||
2 112 223 | 2 119 506 | 19 923 | 28 475 | ||
673 593 | 763 209 | 178 491 | 200 002 | ||
1 771 682 | 7 292 733 | 1 771 682 | 1 771 682 | ||
76 281 | 64 590 | 12 436 | 2 986 | ||
- | 3 034 076 | 27 896 672 | 2 819 650 | ||
758 429 656 | 883 709 662 | 575 779 954 | 187 482 542 | ||
203 090 443 | 236 487 080 | 119 357 085 | 39 821 935 |
Purchase of plant and equipment and intangible assets
Proceeds on disposal of property, plant and equipment
Net cash (utilised)/generated before nancing activities
Financing activities
Lease liability payment
Dividend declared and paid
(Decrease)/increase in cash and cash equivalents after nancing activities
Effects of Exchange rate on cash and cash equivalent
(Decrease)/increase in cash and cash equivalents after nancing activities
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period
(53 925 902) | (22 496 532) | (23 809 847) | (810 049) | |
920 381 | 741 166 | 350 918 | 26 709 | |
(6 992 330) | 30 033 136 | 15 695 775 | 1 456 542 | |
(21 477 289) | (16 674 747) | (9 985 557) | ( 427 848) | |
(2 251 069) | (2 826 069) | (1 063 786) | 155 749 | |
(19 226 220) | (13 848 678) | (8 921 771) | ( 583 597) | |
(28 469 619) | 13 358 389 | 5 710 218 | 1 028 694 | |
17 697 980 | - | 17 697 980 | - | |
(10 771639) | 13 358 389 | 23 408 198 | 1 028 694 | |
45 148 005 | 47 155 550 | 10 968 168 | 1 521 425 | |
34 376 366 | 60 513 939 | 34 376 366 | 2 550 119 |
Trade and other receivables Cash and cash equivalents
TOTAL ASSETS
520 962 847 | 602 074 577 | 422 046 503 | 136 692 439 | |||
34 376 366 | 45 148 005 | 34 376 366 | 10 968 168 | |||
939 875 122 | 1 029 483 880 | 634 892 118 | 198 789 752 |
REPRESENTED BY: | |||
Bank balances, cash and short term deposits | 34 376 366 | 60 513 939 34 376 366 | 2 550 119 |
EQUITY AND LIABILITIES | ||||||
Capital and reserves | 646 724 773 | 599 820 163 | 313 023 769 | 108 748 496 | ||
Share capital and share premium | 24 810 | 24 810 | 24 810 | 24 810 | ||
Non distributable reserves | 752 343 | 752 343 | 752 343 | 752 343 | ||
Retained earnings | 645 947 620 | 599 043 010 | 312 246 616 | 107 971 343 | ||
Non-current liabilities | 73 901 177 | 46 024 921 | 5 258 955 | 607 231 | ||
Non current lease liability | 6 907 | 28 433 | 6 907 | 6 907 | ||
Deferred tax liabilities | 73 894 270 | 45 996 488 | 5 252 048 | 600 324 | ||
Current liabilities | 219 249 172 | 383 638 796 | 316 609 394 | 89 434 025 | ||
Trade and other payables | 156 963 525 | 334 633 356 | 156 963 525 | 77 683 073 | ||
Provisions | 28 188 225 | 1 289 917 | 125 548 447 | 159 036 | ||
Current lease payable | 1 895 454 | 4 152 760 | 1 895 454 | 1 008 864 | ||
Shareholders for dividends | 138 948 | 66 793 | 138 948 | 16 227 | ||
Current tax payable | 32 063 020 | 43 495 970 | 32 063 020 | 10 566 825 | ||
TOTAL EQUITY AND LIABILITIES | 939 875 122 | 1 029 483 880 | 634 892 118 | 198 789 752 | ||
- The historical amounts are shown as supplementary information. This information does not comply with the International Financial Reporting Standards in that it has not taken into account the requirements of International Accounting Standard 29 - Financial Reporting for Hyperinationary Economies.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 MARCH 2024
Non | ||||
Share Capital | Distributable | Retained | ||
and Premium | Reserve | earnings | Total | |
ZW$ 000 | ZW$ 000 | ZW$ 000 | ZW$ 000 | |
INFLATION ADJUSTED | ||||
Balance as at 30 September 2022 (Restated) | 24 810 | 752 343 | 410 685 141 | 411 462 294 |
Prot for the period | - | - | 86 171 648 | 86 171 648 |
Interim dividend declared and paid | - | - | (18 008 520) | (18 008 520) |
Balance as at 31 March 2023 | 24 810 | 752 343 | 478 848 269 | 479 625 422 |
Prot for the period | - | - | 126 039 837 | 126 039 837 |
Dividend declared and paid | - | - | (5 845 096) | (5 845 096) |
Balance as at 30 September 2023 | 24 810 | 752 343 | 599 043 010 | 599 820 163 |
Prot for the period | - | - | 66 450 695 | 66 450 695 |
Dividend declared and paid | - | - | (19 546 085) | (19 546 085) |
Balance as at 31 March 2024 | 24 810 | 752 343 | 645 947 620 | 646 724 773 |
- The historical amounts are shown as supplementary information. This information does not comply with the International Financial Reporting Standards in that it has not taken into account the requirements of International Accounting Standard 29 - Financial Reporting for Hyperinationary Economies.
NOTES TO THE INFLATION ADJUSTED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 31 MARCH 2024
-
CORPORATE INFORMATION
Nampak Zimbabwe Limited is a public limited Company incorporated and domiciled in Zimbabwe. The main activities of the Group are manufacturing of paper, plastic and metal packaging products and leasing of biological assets and property. The abridged consolidated nancial statements for Nampak Zimbabwe Limited and its subsidiaries (the Group) for the six months ended 31 March 2024 were approved by the board of directors on 13 June 2024. - BASIS OF PREPARATION
These abridged consolidated nancial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and the disclosure requirements of the Zimbabwe Stock Exchange Listing Rules.
The interim nancial report is in accordance with IAS 34, "Interim Financial Reporting".
The consolidated nancial statements of the Group have been prepared based on the current cost basis and adjusted for the effects of IAS 29 'Financial Reporting in Hyperinationary Economies'. Comparative nancial statements are restated using the general ination indices in terms of the measuring unit current at the statement of nancial position date. The primary nancial statements of the Group are the ination adjusted numbers.
From February 2023, the government of Zimbabwe through Statutory instrument 27 of 2023, legislated the publication of blended CPI rates which took into account general price changes in both the US$ currency and the ZW$ currency.
In terms of the requirements of IAS29 para 17 "A general price index may not be available for the periods for which the restatement of property, plant and equipment is required by this Standard. In these circumstances, it may be necessary to use an estimate based, for example, on the movements in the exchange rate between the functional currency and a relatively stable foreign currency". The group considered the movement in the RBZ auction market foreign exchange rate for the alternative computation of CPI indices from February 2023 onwards, in line with the provisions of IAS 29.
The indices and conversion factors used were as follows:
Conversion | ||
Indices | factor | |
CPI as at 31 March 2024 | 392 711 | 1.00 |
CPI as at 30 September 2023 | 95 405 | 4.12 |
CPI as at 31 March 2023 | 16 549 | 23.73 |
CPI as at 30 September 2022 | 12 713 | 30.89 |
- FUNCTIONAL AND PRESENTATION CURRENCY
These nancial statements are presented in Zimbabwe dollars (ZW$), which is the functional and presentation currency of the Group. All values are rounded to the nearest thousand except where otherwise stated. - STATEMENT OF ACCOUNTING POLICY
The principal accounting policies applied in the preparation of these nancial statements are consistent with those used in the prior year.
NAMPAK ZIMBABWE LIMITED
ABRIDGED CONSOLIDATED UNREVIEWED RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2024
- DIRECTORS' RESPONSIBILITY
The Company's Directors, under the Companies and Other Business Entities Act (Chapter 24:31), are responsible for the preparation and fair presentation of the Group's consolidated nancial statements and related information.
These abridged Group nancial statements are presented in accordance with the International Financial Reporting Standards and the disclosure requirements of the Zimbabwe Stock Exchange (ZSE).
The Directors have reviewed the performance and nancial position of the Group and are satised that the Group has sufcient nancial resources to continue as a going concern. - EARNINGS PER SHARE
Basic earnings per share amounts are calculated by dividing net prot or loss for the period attributable to ordinary equity holders by the number of ordinary shares in issue
Headline earnings is based on net prot for the period attributable to members after adjusting for other income net of tax
Basic and headline earnings per share are based on 755 648 101 (2023 : 755 648 101) ordinary shares in issue during the period.
INFLATION ADJUSTED | HISTORICAL * | ||||
6 Months | 6 Months | 6 Months | 6 Months | ||
31 March | 31 March | 31 March | 31 March | ||
2024 | 2023 | 2024 | 2023 | ||
ZW$ 000 | ZW$ 000 | ZW$ 000 | ZW$ 000 | ||
Unaudited | Reviewed | Unaudited | Unaudited | ||
Earnings per share | |||||
Earnings attributable to ordinary members | 66 450 695 | 86 171 648 | 213 345 478 | 8 005 729 | |
Ordinary shares in issue at period end | 755 648 101 | 755 648 101 | 755 648 101 | 755 648 101 | |
Earnings per ordinary share (cents) | 8 793.87 | 11 403.67 | 28 233.44 | 1 059.45 | |
Determination of headline earnings or loss | |||||
Prot for the period | 66 450 695 | 86 171 648 | 213 345 478 | 8 005 729 | |
Adjust for: | |||||
Retrenchment and restructuring costs - net of tax | 120 095 | 10,687 | 32 193 | 450 | |
Net exchange gain on foreign currency - net of tax | (196 118 535) | (44 193 087) | (120 809 436) | (1 612 411) | |
Headline (loss)/earnings | (129 547 746) | 41 989 247 | 92 568 234 | 6 393 768 | |
Headline earnings per share | |||||
Headline earnings attributable to ordinary members | - | 41 989 247 | 92 568 234 | 6 393 768 | |
Ordinary shares in issue at period end | 755 648 101 | 755 648 101 | 755 648 101 | 755 648 101 | |
(Loss)/earnings per ordinary share (cents) | (17 143.93) | 5 556.72 | 12 250.18 | 846.13 | |
7. CONTINGENCIES
7.1 Uncertain tax positions
There have been signicant currency changes in Zimbabwe since 2018. These changes created some uncertainties in the tax treatment of transactions due to the absence of immediate and clear guidelines and transitional measures.
The Zimbabwe Revenue Authority (ZIMRA) issued income tax assessments and levied penalties and interest relating to the provisions and reversals of the legacy debt related transactions raised at one of the Group's entities for the period 2019 to 2020. The ZW$ equivalent of the disputed assessments, including interest and penalties, amount to ZW$26.7 billion as at 31 March 2024.
These assessments have been objected to and based on legal advice received, the Board is of the view that there is no liability and that ZIMRA will reverse the assessments once the ongoing engagements and clarications are concluded.
-
SUBSEQUENT EVENTS
On the 5th of April 2024, Statutory Instrument 60 of 2024, Presidential Powers (Temporary Measures) (Zimbabwe Gold Notes and Coins) Regulations, 2024 (The S.I) was gazetted, giving effect to a new currency, Zimbabwe Gold (ZiG). The S.I. introduced the new base currency named ZiG and renamed what was previously known as ZiG to the Gold Backed Digital Tokens ("GBDT"). This is a non adjusting event. - GROUP OPERATING SEGMENT REPORT
The basis of segmentation and basis of measurement of segment prot or loss for the current reporting period is consistent with the last reported annual nancial statements.
Segment reporting for the six months ended 31 March 2024
INFLATION ADJUSTED - UNAUDITED
Printing | Plastics | Services & | ||
& Converting | & Metals | Eliminations | Total | |
ZW$ 000 | ZW$ 000 | ZW$ 000 | ZW$ 000 | |
Sales to local customers | 405 044 725 | 488 226 567 | - | 893 271 292 |
Sales to export customers | 55 645 993 | 27 234 841 | - | 82 880 834 |
Intersegmental sales | 7 521 384 | 6 270 815 | (13 792 199) | - |
Total Sales | 468 212 102 | 521 732 223 | (13 792 199) | 976 152 126 |
Results from operations | ||||
Trading income | 22 558 644 | 87 762 535 | 2 336 837 | 112 658 016 |
Operating prot | 188 817 847 | 29 045 523 | 5 579 874 | 223 443 244 |
Net nance income/(costs) | 203 892 | ( 20 671) | ( 302 030) | ( 118 809) |
Taxation charge | (80 452 203) | (74 352 528) | (2 069 009) (156 873 740) | |
Prot for the period | 108 569 536 | (45 327 676) | 3 208 835 | 66 450 695 |
Other information | ||||
Segment assets | 506 275 695 | 563 649 899 | (130 050 472) | 939 875 122 |
Segment liabilities | 323 838 632 | 259 187 638 | (289 875 921) | 293 150 349 |
Capital expenditure | 25 067 216 | 28 858 687 | - | 53 925 903 |
Depreciation and amortisation | 5 008 603 | 6 396 654 | 603 001 | 12 008 258 |
Other material income | (123 775 877) | (134 119 068) | (6 076 018) (263 970 963) | |
Monetary (gain)/loss on hyperination | (42 483 326) | 192 836 080 | 2 832 981 | 153 185 735 |
Segment reporting for the six months ended 31 March 2023 | ||||
INFLATION ADJUSTED - UNAUDITED | ||||
Sales to local customers | 419 858 426 | 520 975 940 | - | 940 834 366 |
Sales to export customers | 81 514 244 | 40 859 887 | - | 122 374 131 |
Intersegmental sales | 12 632 529 | 336 384 | (12 968 913) | - |
Total Sales | 514 005 199 | 562 172 211 | (12 968 913) | 1063 208 497 |
Results from continuing operations | ||||
Trading income | 111 434 479 | 107 590 887 | (22 655 652) | 196 369 714 |
Operating prot | 88 228 627 | 102 752 666 | (21 392 685) | 169 588 608 |
Finance (expense) / income | ( 576 697) | 82 286 | 386 682 | ( 107 729) |
Taxation charge | (34 445 943) | (47 172 233) | (1 691 055) | (83 309 231) |
Prot for the period | 53 205 987 | 55 662 719 | (22 697 058) | 86 171 648 |
Other information | ||||
Segment assets | 452 422 026 | 456 424 157 | (3 152 524) | 905 693 659 |
Segment liabilities | 245 566 728 | 173 143 558 | (10 359 544) | 408 350 742 |
Capital expenditure | 6 562 274 | 15 934 258 | - | 22 496 532 |
Depreciation and amortisation | 5 119 164 | 4 366 151 | (2 049 881) | 7 435 434 |
Other material income | (12 789 531) | (40 888 856) | (5 012 368) | (58 690 755) |
Monetary loss on hyperination | 35 995 383 | 45 727 077 | 3 749 401 | 85 471 861 |
Segment reporting for the six months ended 31 March 2024
HISTORICAL * - UNAUDITED
Printing | Plastics | Services & | ||||||||
& Converting | & Metals | Eliminations | Total | |||||||
ZW$ 000 | ZW$ 000 | ZW$ 000 | ZW$ 000 | |||||||
Sales to local customers | 158 536 881 | 224 370 366 | - | 382 907 247 | ||||||
Sales to export customers | 31 286 409 | 12 937 772 | - | 44 224 181 | ||||||
Intersegmental sales | 3 257 730 | 2 061 001 | (5 318 731) | - | ||||||
Total Sales | 193 081 020 | 239 369 139 | (5 318 731) | 427 131 428 | ||||||
Results from continuing operations | ||||||||||
Trading income | 38 504 634 | 54 201 286 | 934 624 | 93 640 544 | ||||||
Operating income | 117 295 384 | 134 960 750 | 4 047 364 | 256 303 498 | ||||||
Net nance income / (costs) | 105 738 | ( 18 403) | ( 139 163) | ( 51 828) | ||||||
Taxation charge | (4 375 096) | (37 253 501) | (1 277 595) | (42 906 192) | ||||||
Prot for the period | 113 026 026 | 97 688 846 | 2 630 606 | 213 345 478 | ||||||
Other information | ||||||||||
Segment assets | 340 452 459 | 337 779 024 | (43 339 365) | 634 892 118 | ||||||
Segment liabilities | 288 388 614 | 188 416 754 | (154 937 019) | 321 868 349 | ||||||
Capital expenditure | 11 654 325 | 12 104 803 | 50 719 | 23 809 847 | ||||||
Depreciation and amortisation | 166 833 | 685 459 | 88 183 | 940 475 | ||||||
Other material income | (78 790 750) | (80 759 464) | (3 112 740) (162 662 954) | |||||||
Segment reporting for the six months ended 31 March 2023 | ||||||||||
HISTORICAL * - UNAUDITED | ||||||||||
Sales to local customers | 15 379 870 | 19 038 498 | - | 34 418 368 | ||||||
Sales to export customers | 3 142 487 | 1 476 738 | - | 4 619 225 | ||||||
Intersegmental sales | 476 887 | - | ( 476 887) | - | ||||||
Total Sales | 18 999 244 | 20 515 236 | ( 476 887) | 39 037 593 | ||||||
Results from continuing operations | ||||||||||
Trading income | 4 219 898 | 4 511 939 | 117 319 | 8 849 156 | ||||||
Operating prot | 4 650 415 | 6 042 429 | 297 698 | 10 990 542 | ||||||
Net nance (costs) / income | ( 21 319) | 3 227 | 13 980 | ( 4 112) | ||||||
Taxation charge | (1 283 933) | (1 649 577) | ( 47 191) | (2 980 701) | ||||||
Prot for the period | 3 345 163 | 4 396 079 | 264 487 | 8 005 729 | ||||||
Other information | ||||||||||
Segment assets | 17 696 200 | 16 106 844 | ( 76 573) | 33 726 471 | ||||||
Segment liabilities | 10 025 497 | 6 346 119 | ( 786 022) | 15 585 594 | ||||||
Capital expenditure | 142 892 | 566 374 | 100 783 | 810 049 | ||||||
Depreciation and amortisation | 61 241 | 71 474 | ( 15 139) | 117 576 | ||||||
Other material income | ( 430 518) | (1 530 489) | ( 180 379) | (2 141 386) | ||||||
10. OTHER MATERIAL INCOME | ||||||||||
INFLATION ADJUSTED | HISTORICAL * | |||||||||
6 Months | 6 Months | 6 Months | 6 Months | |||||||
31 March | 31 March | 31 March | 31 March | |||||||
2024 | 2023 | 2024 | 2023 | |||||||
ZW$ 000 | ZW$ 000 | ZW$ 000 | ZW$ 000 | |||||||
Unaudited | Unaudited | Unaudited | Unaudited | |||||||
Retrenchment, termination and restructuring costs | 161 744 | 14 196 | 43 357 | 498 | ||||||
Net exchange gain on foreign currency | (264 132 707) | (58 704 951) | (162 706 311) | (2 141 884) | ||||||
Total | (263 970 963) | (58 690 755) | (162 662 954) | (2 141 386) |
COMMENTARY
ECONOMY
The economic environment remains uncertain with power outages continuing to affect some of the operations during the period. The El-Nino induced drought has adversely affected the agricultural season and is expected to dampen the volumes in the paper business as the tobacco crop will be lower in this season, compared to last. Policy changes on route to market saw volumes slowing down at the start of the second quarter.
There has been rm demand in some of our business units, despite the power cuts, which were overcome by the use of the generators. The multi-currency trading environment has seen more United States dollar (USD) transactions processed compared to the Zimbabwe dollar (ZW$).
HYPERINFLATIONARY PERFORMANCE
Group volumes for the six months to March 2024 were behind the prior year by 5% mainly due to reduced volumes at Hunyani resulting from the smaller tobacco crop as well as lower tobacco cases orders from the region. Volumes in the other operations were ahead of prior year due to improved volumes from our customers who beneted from the buoyant consumer spending. Tight liquidity due to policy shifts and the lack of availability of the foreign currency from the auction oor in the second quarter has adversely affected our stock replenishment.
Revenue for the half year at ZW$976,2 billion, in hyper-inationary terms was 8% behind the prior year. The decline was due to the lower sales volumes as mentioned above when compared to the prior year in which a record tobacco crop was recorded. Trading margins declined from prior year as more transactions occurred in USD where pricing is more stable, however operating margins improved, largely due to exchange gains recorded from foreign currency denominated balances. The operating prot of ZW$223,4 billion was 32% ahead of prior year.
All business units continued to trade protably with sustained focus on generating positive cash ows and funding capital projects with shorter paybacks in order to increase plant capacity. Net working capital for the half year increased mainly due to increases in foreign currency denominated trade receivables and inventory due to an increased number of US Dollar transactions during the period under review.
PRINTING AND CONVERTING SEGMENT
Hunyani Paper and Packaging: Sales volumes for the period were 14% below prior year. The major decrease is attributable to the reduced tobacco crop size. Regional demand is also lower and has been inuenced by the drought and loss of volume to competitors. Commercial volumes were 3% up on prior year due to improved raw material supply.
PLASTICS AND METALS SEGMENT
MegaPak: Sales volumes were 10% above prior year despite the increased power cuts in Ruwa which were mitigated by the use of generators. The order book remains rm although power related breakdowns continue to hamper our ability to meet demand.
CarnaudMetalbox: Sales volumes for the half year were marginally higher compared to prior year. In plastics, HDPE was 20% ahead of prior year due to increased demand. Metals volumes were down by 27% due to raw material shortages particularly in the rst quarter. Closures were signicantly down on prior year due to reduced demand.
CAPITAL EXPENDITURE
Capital expenditure of ZWL$23,8 billion in historical terms relates mainly to expansion projects and improved generator capacity at Megapak as well as an 8 Colour SO bag machine for Hunyani. The Group continues to evaluate other projects in order to maintain or improve capacity.
DIVIDEND
The directors have decided against declaring an interim dividend in view of the need to conserve available cash for capital expenditure.
DIRECTORATE
During the period under review, Mr Quinton Swart resigned from the board. The Board wishes to thank Mr Swart for his contribution to the Board and the Company.
OUTLOOK
The overall situation facing the economy remains challenging. The Government introduced a new structured currency, the Zimbabwe Gold (ZIG) with effect from 5 April 2024 and the scal authorities are still to announce measures to support the monetary policy changes. It remains to be seen how the de-dollarisation strategy will be implemented going forward in light of the signicant transactions occurring in US Dollars.
The economy will be impacted by the lower mineral prices and the reduced agricultural output following the El-Nino induced drought in 2024. We anticipate that the Group will remain protable through to year end, although the slow turnaround in the supply chain arising from the Russia/Ukraine conict as well as the unrest in the Middle East may affect raw material supplies.
By Order of the Board
J P Van Gend
Group Managing Director
13 June 2024
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Directors: A. H. Howie (Chairman), J. P. Van Gend* (Group Managing Director), M. Matafeni* (Group Finance Director), A. Aldridge, S. H. Murray, M. Valela (A. Makamure, Alt). * Executive
P O Box 4351, Harare, 68 Birmingham Road, Southerton, Harare, Zimbabwe. Telephone 662730/9, 0772192291/3
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Nampak Zimbabwe Ltd. published this content on 27 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 June 2024 07:38:15 UTC.