Nampak Forecasts HEPS Surge to 5,500 Cents, EPS Up to 5,400 Cents for HY24

  • Nampak expects HEPS of 4,700-5,500 cents and EPS of 4,600-5,400 cents for continuing operations in HY24.
  • The company reported improved financial performance due to cost reduction, lower forex losses, and asset disposals.
  • Nampak’s WANS for HY23 was re-presented due to share consolidation and rights offer in September 2023.

Nampak Limited, the South African packaging group, is finalizing its unaudited interim results for the six-month period ending March 31, 2024.

Significant Financial Improvement Expected

Nampak announced that its financial results will show a notable improvement compared to the prior period.

Table: Key Financial Metrics (Cents per Share)

MetricHY24 Estimate RangeHY23 (Re-presented)
HEPS (Continuing Ops)4,700.0 – 5,500.0-11,027.3
EPS (Continuing Ops)4,600.0 – 5,400.0-31,043.7
HEPS (Total Ops)3,000.0 – 3,400.0-11,524.1
LPS (Total Ops)-1,050.0 – -1,250.0-83,882.1

Impact of Share Consolidation and Rights Offer

Nampak completed a share consolidation and rights offer in September 2023. This resulted in a change in the weighted average number of shares (WANS).

For HY23, WANS was re-presented from 627,822,506 to 2,968,572. For HY24, the WANS is 8,277,921.

Asset Disposals and Cost Reduction

During HY24, Nampak classified various assets as held for sale and discontinued operations. This was part of an asset disposal program started in August 2023.

The company also implemented a highly effective cost reduction program. This contributed to the improved financial performance.

Continuing Operations Performance

Nampak expects headline earnings per share (HEPS) for continuing operations to be between 4,700.0 cents and 5,500.0 cents. This is a significant improvement from the headline loss per share (HLPS) of 11,027.3 cents in HY23.

Earnings per share (EPS) for continuing operations is expected to be between 4,600.0 cents and 5,400.0 cents. This compares to a loss per share (LPS) of 31,043.7 cents in HY23.

Total Operations Performance

For total operations, HEPS is expected to be between 3,000.0 cents and 3,400.0 cents. This compares to a HLPS of 11,524.1 cents in HY23.

The LPS for total operations is expected to be between 1,050.0 cents and 1,250.0 cents. This is a significant improvement from the LPS of 83,882.1 cents in HY23.

Conclusion

Nampak Limited is set to report a substantial financial turnaround for the six-month period ending March 31, 2024. Shareholders and investors will be keenly awaiting the release of the full unaudited interim results later this month.


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