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2023-05-19 7:46 AM

Nampak Reports Expected Losses for the Six-Month Period Ended 31 March 2023

By Lethabo Ntsoane
  • Nampak Limited expects a significant decline in financial results for the six-month period ended 31 March 2023, attributed to higher impairment losses, devaluation losses, and increased finance costs.
  • Anticipated financial ranges include a headline loss per share (HLPS) between 53.0 cents and 58.0 cents, and a loss per share (LPS) between 380.0 cents and 420.0 cents.
  • Nampak is engaged in negotiations for a refinancing package, which will determine the size of an upcoming rights offer. Further details about the rights offer and the company’s restructuring plan will be provided in future shareholder updates.

Nampak Limited announced its trading statement for the six-month period ending 31 March 2023. The company expects to report a significant decline in financial performance compared to the same period last year.

In accordance with the JSE Listings Requirements, Nampak confirmed that it anticipates a variance of at least 20% in its financial results for the period compared to the prior year. The primary factors contributing to this decline are higher net impairment losses, devaluation losses resulting from Angolan and Nigerian exchange rate movements, and increased net finance costs.

Nampak expects the following ranges for the six-month period:

  • Headline loss per share (HLPS) between 53.0 cents and 58.0 cents, compared to headline earnings per share (HEPS) of 35.6 cents in the first half of 2022 (1H22).
  • Loss per share (LPS) between 380.0 cents and 420.0 cents, compared to earnings per share (EPS) of 34.9 cents in 1H22.

The transition from positive earnings to losses per share reflects the challenges faced by the company during the period under review.

Additionally, Nampak provided an update on its proposed capital raise through a rights offer. The company is currently in negotiations to finalize credit-approved term sheets for a refinancing package that will span the next five years. The outcome of these negotiations, along with the progress made in implementing the restructuring plan, will determine the size of the required rights offer. Nampak plans to announce further details regarding the rights offer as part of its ongoing shareholder updates.

It is important to note that the information provided in this trading statement has not yet been reviewed or reported on by the company’s external auditors. Nampak anticipates releasing its unaudited interim results on or around Wednesday, 24 May 2023.

Investors and stakeholders will closely monitor Nampak’s financial performance and the outcome of the refinancing negotiations, as they will provide insights into the company’s plans to address its current challenges and improve its future prospects.

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Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted: Email: lethabo@rateweb.co.za Twitter: @NtsoaneLethabo