|Mpact final results December 2018|
|13 March 2019 8:54|
|Revenue from contracts with customers for the year increased to R10.612 billion (2017: R10.120 billion), gross profit rose to R4.036 billion (2017: R3.646 billion), profit attributable to equity holders of Mpact climbed to R316.2 million (2017: R275.2 million), while headline earnings per share grew to 195.6 cents per share (2017: 164.5 cents per share).
The Board has declared a final gross cash dividend of 55 cents for the year ended 31 December 2018 (44 cents net of dividend withholding tax) per ordinary share.
Recent developments in South Africa suggest government is serious about fiscal discipline, tackling corruption and restoring the performance of state-owned enterprises, which gives some hope for our future growth prospects. In the short term however, we expect subdued growth to persist. Profit margins will be adversely impacted by the carbon tax and above inflationary cost increases in electricity, water and other administered services.
Our focus in the year ahead will be on achieving the full benefits of our capital projects, realising the potential of the Mpact Polymers plant and improving profitability in the underperforming Plastics businesses.
We expect to see further improvement in the operating performance of the Paper business as the recent projects are optimised and fruit volumes improve in the Western Cape following the drought. We will also increase our product development efforts to capitalise on opportunities arising from the shift towards recycled products.
|Click here for original article|