MPACT LIMITED - Unaudited interim results and cash dividend declaration for the six months ended 30 June 2019
7 August 2019 8:00
MPT 201908070005A
Unaudited interim results and cash dividend declaration for the six months ended 30 June 2019

Mpact Limited
(Incorporated in the Republic of South Africa)
(Company registration number 2004/025229/06)
Income tax number: 9003862175
JSE share code: MPT
JSE ISIN: ZAE000156501
("Mpact" or "the Group" or "the Company")

Unaudited interim results and cash dividend declaration
for the six months ended 30 June 2019

Mpact is the largest paper and plastics packaging and recycling business in Southern Africa with customers
that include packaging converters, fruit producers, FMCG companies and other consumer and industrial
packaging companies. Mpact's integrated business model is uniquely focused on closing the loop in plastic
and paper packaging through recycling and beneficiation of recyclables.

Salient features

- Revenue increased by 4.2% to R5.2 billion (June 2018: R5.0 billion)
- Underlying operating profit up 29.4% to R218 million (June 2018: R168 million)
- Underlying earnings per share up 25.1% to 39.4 cents (excluding IFRS 16, up 47.9%)
- Return on Capital Employed ("ROCE") increased to 10.3% (June 2018: 7.4%)
- Interim gross cash dividend up 20.0% to 18 cents per share (June 2018: 15 cents per share)

Group performance
The Group's improved financial results for the six months
ended 30 June 2019 reflect further benefits from recent capital
investments which more than offset the effects of a challenging
trading environment and unfavourable market conditions.

Group revenue of R5.2 billion was 4.2% higher than the
comparable prior period, with external sales volumes
increasing by approximately 1%.

Underlying operating profit of R217.7 million was
29.4% higher than the comparable prior period
(June 2018: R168.3 million) primarily due to improved
containerboard margins.

Mpact has concluded the refinancing of R2.6 billion of its
existing bank facilities, subject to the fulfilment of certain
conditions precedent.

There is currently no indication of any meaningful
improvement in the South African economy. We do
nevertheless expect better sales to the agricultural sector
during the second half of the year as a consequence of
good growth in citrus fruit volumes.

Recovered paper prices in the domestic market are stable,
with the effects of waste-import-policy implementation in
China and other Southeast Asian countries offsetting lower
collections in South Africa.

Containerboard sales volumes are likely to remain under
pressure due to global supply and demand, which may affect
profit margins in the second half of the year. We expect to
mitigate some of the effects through cost savings, higher
efficiencies and improved product mix.

Our focus at Mpact Polymers is on improving plant yield, quality and
throughput, whilst also realising sustainable prices for SavukaPET.
Mpact's integrated business model is uniquely focused on closing the loop in
paper and plastic packaging through recycling and beneficiation. We continue
to work with our customers in developing new processes, products and
opportunities that enable them to realise their sustainability goals.

Cash dividend
Notice is hereby given that the Board has declared a final gross cash dividend
of 18 cents for the six months ended 30 June 2019 (14.40 cents net of
dividend withholding tax) per ordinary share. The dividend has been declared
from income reserves. A dividend withholding tax of 20% will be applicable to
all shareholders who are not exempt.

The Company's total number of issued ordinary shares at the date of this
announcement is 173 304 517. Mpact's income tax reference number is 9003862175.

Salient dates for the cash dividend distribution.
Publication of dividend declaration                                    Wednesday, 7 August
Last day of trade to receive a dividend                               Tuesday, 3 September
Shares commence trading "ex" dividend                               Wednesday, 4 September
Record date                                                            Friday, 6 September
Payment date                                                           Monday, 9 September

All times provided are South African local times. The above dates and times
are subject to change. Any material change will be announced on the SENS.

Share certificates may not be dematerialised or rematerialised between
Wednesday, 4 September 2019 and Friday, 6 September 2019, both days inclusive.

Financial summary
                                                      Six months      Six months
                                                           ended           ended
                                                         30 June         30 June    Change
  R'million                                                 2019            2018         %
  Revenue                                                  5 182           4 976       4.2
  Underlying operating profit(1)                             218             168      29.4
  Underlying profit before tax(2)                             85              69      23.2
  Net debt                                                 3 000           2 217      35.3
  Return on capital employed (%)                            10.3             7.4       2.9
  Interim gross dividend for the year (cents)               18.0            15.0      20.0
  Basic earnings per share (cents)                          40.2            29.7      35.4
  Basic underlying earnings per share (cents)               39.4            31.5      25.1
  Basic headline earnings per share (cents)                 39.0            30.5      27.9

(1)  Underlying operating profit is the Group operating profit before special items.
(2)  Underlying profit before tax is the Group profit before tax and before special items.

This short-form announcement is the responsibility
of the directors and is only a summary of the
information in the full unaudited announcement.
Any investment decision should be based on the full
unaudited announcement which is available on our website and on

The full unaudited announcement is also available at
our registered offices for inspection, at no charge,
during office hours. Copies of the full unaudited
announcement may be requested by contacting
Noriah Sepuru on
telephone: +27 (0)11 994-5551
fax: 086 520 6969

7 August 2019 

Independent Non-Executive:
AJ Phillips (Chairman), NP Dongwana, NB Langa-Royds, PCS Luthuli, M Makanjee,
TDA Ross, AM Thompson

BW Strong (Chief Executive Officer), BDV Clark (Chief Financial Officer)

Company secretary:
MN Sepuru

Registered office:
4th Floor, No.3 Melrose Boulevard, Melrose Arch, 2196
(Postnet Suite #179, Private Bag X1, Melrose Arch, 2076)

Transfer secretaries:
Link Market Services South Africa Proprietary Limited
13th Floor, Rennie House, 19 Ameshoff Street, Braamfontein, 2001
(PO Box 4844, Johannesburg, 2000, South Africa)

Rand Merchant Bank (a division of FirstRand Bank Limited)
1 Merchant Place, corner Fredman Drive and Rivonia Road, Sandton, 2196
(PO Box 786273, Sandton, 2 146)

Date: 07/08/2019 08:00:00
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