Nampak anticipating heavy hit from Zimbabwe, Angola

Nampak [JSE:NPK] has warned of plummeting earnings and heavy foreign exchange losses as it finalises itsresults for the year ended 30 September 2019.

The diversified packaging company, which is expecting to release its results on Wednesday, saw its share price slide just under 6% during the course of Monday. It dropped a further 2.29% to R6.55 by 14:35 on Tuesday, and is now down 58.22% from its 52-week high of R15.70.

This followed the announcement on Monday that it expected headline earnings per share to decrease by between 67% and 72% to between 48.5 cents and 57.2 cents per share, compared to a restated 173.3 cents per share in the previous year.

Earnings per share for continuing operations were expected to decrease by between 74% to 79%, Nampak said, to between 37.1 cents per share and 45.9 cents per share.

Several factors had impacted its performance over the past year, the group said, including net losses on property, plants and equipment.

Most notably, the company was hit by a R1.9bn net pre-tax foreign exchange loss in Zimbabwe, and a higher-than-expected tax rate in Angola.

Nampak’s outgoing CEO, Andre de Ruyter, was recently appointed to head up embattled state power utility Eskom.