JSE-listed packaging company Nampak recorded top line growth, margin expansion, a 22% increase in trading profit and a 7% increase in operating profit for the six-month period to March 31.

Revenue growth management disciplines were maintained, with a sustained focus on margin management, cost containment and efficiency improvements, the company said in a trading statement on May 16.

The first half of the company’s 2025 financial year yielded a positive financial outcome, notwithstanding constrained consumer spending and the high base effect of the comparable six-month period to end March 2024, it said.

The group continues to make good progress in decreasing debt levels, assisted in the six-month period by the sale of Bevcan Nigeria, strong operating cash flow and lower interest costs but partially offset by an increased investment in net working capital, Nampak said.

During the period under review, a pension fund surplus of R65-million and a R100-million interim settlement of an outstanding Covid-19 insurance claim were recognised.

The after-tax effects of the aforementioned benefitted headline earnings, but to a lesser degree in the period under review than the operating profit in the six months to end March 2024, which had benefitted from a post-retirement medical aid gain of R290-million.

Nampak expects to report a 1% to 8% year-on-year increase in headline earnings per share (HEPS) from continuing operations to between R54.50 and R58.50, compared with HEPS of R54.10 a share in the prior comparable period.

Similarly, earnings per share (EPS) from continuing operations are expected to be between 6% to 17% higher year-on-year at between R56 and R62, compared with the EPS of R52.96 reported for the prior comparable period.

HEPS and EPS have increased owing to the strong trading performance and lower net finance costs compared with the prior period, Nampak said.

Further, HEPS from total operations is expected to be between 98% and 114% higher year-on-year at between R64 and R69, while EPS from total operations are expected to be between R340 and R360, compared with a loss a share of R11.23 in the prior comparable period.

The disposal of Bevcan Nigeria has resulted in the recycling of a foreign currency translation reserve relating to the deconsolidation of this entity, thereby increasing EPS for total operations, Nampak pointed out.