The company expects to slip into a headline loss partly due to currency volatility in Zimbabwe
The share price of packaging group Nampak fell to a more than two-decade low on Monday after it warned that its 2019 profit will be severely reduced by several misfortunes, including a R1.9bn foreign-exchange loss in Zimbabwe.
Nampak, which has a market capitalisation of R4.6bn, expects a headline loss from continuing and discontinued operations of between 18.9c and 19.9c, from headline earnings per share of 173.3c previously. Nampak has previously warned that currency volatility in Angola and Zimbabwe were weighing on its performance. This was part of the reason it opted not to resume dividend payments for its six months to end-March, though finalisation of the disposal of its glass business was also a factor.to Isanti Glass 1 for R1.5bn, an entity 60% held by black-owned investment company Kwande and 40% owned by a subsidiary of AB InBev.
In Angola, the changes in tax legislation compounded an already difficult operating environment for Nampak as the devaluation of the local currency in 2018 reduced local consumption and profits this year.
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