Nampak (NPK) H2 2025 earnings summary

Executive summary

• Revenue increased by 8% year-over-year to ZAR 10.7 billion, with EBITDA and trading profit both up 26%.

• Net debt was halved to ZAR 2.1 billion, supported by ZAR 1.5 billion in asset disposals and improved cash flows.

• Headline earnings surged 213% to ZAR 872 million, with headline EPS at ZAR 105.10.

• Profit for the year reached ZAR 3.5 billion, reversing a prior year loss, aided by gains from discontinued operations.

• The business completed significant asset disposals, improved cash flows, and restored trust with stakeholders.

Financial highlights

• Operating profit rose 13% to ZAR 1.9 billion; EBITDA margin improved to 17.3% from 14.8%.

• Net finance costs dropped 45% to ZAR 508 million, driven by debt repayment and lower interest rates.

• Cash generated from operations before working capital changes up 38% to ZAR 2.2 billion.

• Return on Invested Capital improved to 22.7%, ahead of the Weighted Average Cost of Capital.

• Equity base increased 97% to ZAR 2.8 billion; net gearing reduced to 77%.

Outlook and guidance

• Focus on manufacturing excellence, margin preservation, and customer-centricity for FY 2026.

• Strategic review of the Diversified segment underway, with potential for optimization, restructuring, or closure.

• CapEx expected to rise to ZAR 600 million in FY 2026 due to Angolan line relocation, then normalize to ZAR 300 million from FY 2027.

• Targeting reinstatement of dividend if financial objectives are met by year-end.

• Continued emphasis on debt reduction, manufacturing efficiency, and granular growth initiatives.