Packaging company Nampak expects to return to the black after its continuing operations showed improved performance and it made progress on asset disposals.
Its share price on the JSE soared the most since early 2021 on the news, up 23.4% to R228, giving it a market cap of R1.933bn.
The company expects to report headline earnings per share (HEPS) from continuing operations of between R47 and R55 for the six months to end-March from a loss of R11.03 a year ago.
For total operations, it expected HEPS at R30-R34 compared with a headline loss per share of R11.52 a year ago, it said in a statement on Thursday.
Figures for 2023 were re-presented in accordance with the application of IFRS 5: assets held for sale and discontinued operations, and to reflect the impact of the share consolidation and rights offer that occurred in September 2023.
The most important drivers of first-half performance included a step change in performance of the continuing operations, a cost reduction programme, lower forex losses, improved working capital management and progress on asset disposals, it said.
During the period the group classified various assets as held for sale and discontinued operations as it continued with its asset disposal programme that commenced in August 2023.
The company expects to publish its results on June 28 after it delayed their release due to a cyber incident in March that affected its IT systems.
As part of its turnaround strategy, the group has announced the sale of its Nigerian assets, the closure of the Isle of Man office and the sale of property owned in London.
It also plans to dispose of its liquid cartons business in SA for R450m, making headway in its asset disposal plan to raise R2.6bn to settle its debt.
The packaging supplier for companies ranging from Coca-Cola to Tiger Brands has been battling to claw its way out of a R5bn debt hole it fell into during its ill-fated expansion in Africa.
Note: June 20 2024
This story has been updated with share price information.
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