Nampak Limited. JSE: NPK

Nampak shares

Background of Nampak

  • Nampak Limited is the largest diversified packaging company in Africa, offering products across all major packaging materials including paper, plastic, glass and metal. The group operates in South Africa and 11 other African countries, whilst also manufacturing plastic bottles in the United Kingdom.

  • Operations in South Africa include 28 sites which contribute around 47% to trading profit, with an equal amount of profit generated from 16 sites in the rest of Africa. Nampak shares have been listed for sale on the Johannesburg Stock Exchange (JSE) since 1969, with a successful history of creating profits for investors who buy them.

  • The group employs over 6 600 people, and its research and development facility in Cape Town provides product development support to Nampak’s various business. Customers include some of the world’s largest fast-moving consumer goods companies.

  • Operating divisions include Nampak Metals, Nampak Plastics, Nampak Paper, Nampak Glass and Nampak Inspection and Coding Solutions. Nampak boasts a JSE market cap of R12.94 billion, and the live online stocks chart shows that a steady growth trend in Nampak share price has been reversed recently.

Nampak Shares Growth Driver

  • After consistent years of strong growth and investor confidence to buy the stocks, Nampak share price plunged from R42.65 in 2015 to R18.79 by September 2016, with market cap more than halving. Performance has been hampered by slow economic growth in the home market of South Africa and a sharp fall in oil prices which took a toll on the economies of Angola and Nigeria – Nampak’s two biggest markets outside South Africa. Foreign exchange volatility and operational issues exacerbated the problems. The company has been reshaped in response, with low-margin and non-core businesses being disposed of and business processes being streamlined.

  • Operating profit fell from R935 million in the first half of 2015 to R870 million in 2016, with dividends decreasing. This was mostly due to net abnormal losses of R119 million, primarily due caused to the devaluation of the Angolan kwanza. This aside, all of the group’s divisions managed to increase their trading profit, with particularly solid performance from Bevcan Nigeria, the Plastics division and a return to profit for the Glass division.

  • As consumer demand continues to be under pressure in South Africa, revenue from local businesses is remaining flat. Businesses in the rest of Africa have enjoyed solid sales increases and a marked increase in the amount they contribute to Nampak’s overall revenue.

Nampak Group Investor Tip

  • It is expected that Nampak will continue to be impacted by prevailing economic challenges in key markets, with Nampak share price not likely to see many strong gains in future. Demand for packaged goods, along with exchange rates, are expected to be a key factor in influencing results. Investment analysts have advised that investors hold the shares at present, but there won’t be a rush amongst new investors to buy Nampak shares.

Nampak Major Shareholders

Allan Gray, Government Employees Pension Fund, Lazard International Strategic Equity, Nampak Products Ltd, Somerset Capital Management and Visio Capital Management.

  • Sector

    Materials

  • Industry

    Containers & Packaging

  • Sub industry

    Containers & Packaging

How to buy Nampak Group Shares

  • Nampak : How to buy Nampak Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Nampak Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Nampak Group and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Nampak Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in Nampak Group.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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