Nampak (NPK) H1 2025 earnings summary

Executive summary

• Achieved a significant turnaround from a distressed, under-capitalized state to a recapitalized, focused, and high-performing business over two years, restoring stakeholder confidence and organizational morale.

• Interim results for 1H25 show strong operational and financial improvements, with revenue from continuing operations up 11% year-over-year to R5.7bn and trading profit up 22%, despite challenging consumer conditions.

• Leadership transition underway, with Phil Roux stepping down as CEO and Andrew Hood taking over as COO, ensuring continuity.

• Discontinued operations delivered a profit of R2.5bn, mainly from the Bevcan Nigeria sale, resulting in total profit for the period of R3.0bn versus a loss of R135m in 1H24.

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.

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

• Headline earnings per share from continuing operations increased 5% to 5,683.5c; total headline earnings per share rose 108% to 6,692.2c.

• 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 factory performance meets targets.

• No significant CapEx expected for line two or three in H2; maintenance CapEx guided at R300m per year.

• Dividend resumption possible after closing the Zimbabwe transaction and consistent results; no interim dividend declared for 1H25.

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