Nampak’s new unit in Nigeria helps to drive profit
Nampak’s Nigerian venture, which was bought for $301m in February, helped to make a modest contribution to the company’s (Nampak Ltd) profitability, according to a 6 months report (to March 2014). The unit, which is barely a month old, is projected to help increase the group’s profit derived from the rest of Africa to 50% of total income. The can manufacturer’s output per annum from Nigeria is projected to average 1 billion beverage cans a year.
Nampak Ltd., which is Africa’s biggest manufacturer of beverage cans, based in South Africa, recorded a 6 percent decline in its first half year profit, following a weaker trading in its home market of South Africa. Net income fell to 729.3 million rand ($69.9 million) from 775.2 million rand a year earlier.
Nampak has plants in 12 countries, manufacturing packaging materials from metals, glass, paper and plastics. It supplies cans to major global beverage manufacturers such as Coca Cola, SABMiller and Heineken. In February, Nampak bought Nigerian packaging company Alucan , for $301 million.