Nampak (NPK) H1 2025 earnings summary

Executive summary

• Achieved a significant turnaround from a distressed, under-capitalized state to a recapitalized, stable, and high-performing business over two years, with a revitalized, structurally sound balance sheet and focused portfolio strategy.

• Interim results for 1H25 show strong operational and financial improvements, with morale and stakeholder confidence restored.

• Revenue from continuing operations rose 11% year-over-year to R5.7bn, with trading profit up 22% and operating profit up 7% despite challenging consumer conditions and a high prior-year base.

• Leadership transition underway, with outgoing CEO remaining as non-executive director to ensure continuity.

• Focus shifted from balance sheet repair to operational growth and margin improvement.

Financial highlights

• Group revenue rose 11% to R5.7bn in 1H25; trading profit increased 22% to R764m; EBITDA up 7% to R1.1bn; operating profit up 7% to R952m.

• Net finance costs dropped 38% to R282m due to lower interest rates and reduced net debt.

• Profit before tax surged 58% to R670m; headline earnings per share from continuing operations increased 5% to 5,683.5c; total headline earnings per share rose 108% to 6,692.2c.

• Net debt (excluding leases) reduced by 33% to R3.1bn; net gearing down to 149% from 258%.

• Return on shareholders’ equity improved to 60% (1H24: 48%); ROIC at 21% (1H24: 15%).

Outlook and guidance

• Expecting a more normalized split between H1 and H2, with stronger beverage sales in the second half if operational targets are met.

• No significant CapEx expected for line two or three in H2; maintenance CapEx guided at ZAR 300 million.

• Dividend resumption possible after Zimbabwe transaction closure and consistent results.

• Earnings profile stabilised and more predictable; market leadership in core categories maintained.

• Beverage can format and diversified share growth continue to strengthen; Angola offers upside potential.