Nampak Zimbabwe Limited has released its trading update for the first quarter of the financial year, ending December 2025. The company, a leading packaging solutions provider, reported mixed performance across its business segments.
The Cartons, Labels, and Sacks Division sales volumes fell 10% year-on-year due to weak demand and improved competition while the Plastics and Metals Segment at Mega Pak recorded a 10% increase in sales volumes, driven by improved demand for PET/Preforms. However, HDPE demand was marginally lower, and Ruwa operations were affected by power challenges.
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Nampak Zimbabwe remains cautiously optimistic about the prospects for an improved operating environment, driven by sustained economic stability and a recovering agricultural sector. The company will focus on improving operational efficiencies and implementing cost-optimisation strategies to achieve sustainable growth.
The operating environment remained stable during the quarter, with tight monetary policy measures supporting stability. Inflation trended downwards, and the agricultural sector showed signs of recovery, driven by improved rains and higher gold production. The tobacco marketing season achieved record deliveries, benefiting demand for tobacco cases.
Group volumes were 39% ahead of the prior year, driven by carryover tobacco case orders and improved PET/Preforms demand. Group revenue increased 19% year-on-year, supported by improved demand and pricing strategies.
