NAMPAK Zimbabwe Limited has committed US$560 000 towards new plant and equipment, signalling a cautious return to capital investment across its paper, plastics and metal packaging operations after reporting no contracted commitments in the prior year.
The fresh outlay follows a sharp improvement in the group’s cash position, with reserves climbing to US$6,7 million in the financial year ended September 30, 2025, from US$1,9 million a year earlier.
This left the company holding US$2,85 in cash for every dollar of short-term debt, underscoring strong liquidity to support projects in the financial year ending September 2026.
Management is banking on a recovery in sales volumes as pricing distortions ease, with tighter cost controls and targeted capital deployment expected to underpin performance.
During the year under review, revenue declined 8% to US$93,15 million, weighed down by heightened competition, increased informalisation and weaker demand for preforms at its Mega Pak subsidiary.
“Contracted commitments of US$0,56 million relate to plant and equipment for Hunyani Paper and Packaging of US$0,13 million, Mega Pak of US$0,23 million and CMB of US$0,20 million,” Nampak Zimbabwe said in its annual report for the period ended September 30, 2025.
The group operates through two main segments. Its printing and converting division is led by Hunyani Paper and Packaging (Private) Limited, alongside Hunyani Forests Limited and Hunyani Properties Limited.
The plastics and metals segment comprises Mega Pak Zimbabwe (Private) Limited and CarnaudMetalbox Zimbabwe (Private) Limited.
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Hunyani Paper and Packaging produces paper packaging through its corrugated products and cartons, labels and sacks divisions.
Mega Pak manufactures packaging using blow moulding, injection moulding, stretch blow moulding and rotational moulding technologies for food, beverages, domestic and general-purpose markets.
During the year, Hunyani Paper and Packaging recorded a 3% decline in sales volumes due to reduced demand for commercial cartons, while Mega Pak’s volumes fell 9% amid intensified competition.
“The Nampak Zimbabwe Limited group continued to self-fund all its operational and capital requirements, reinvesting cash generated into raw material, operations and equipment,” parent company Nampak said in its integrated annual report.
“Trading conditions in Zimbabwe remained challenging, with pressure on volumes and margins. This was a year characterised by new entrants across all sectors of the business.”
Capital expenditure rose marginally to US$3,62 million from US$3,5 million in the prior year, largely directed towards capacity expansion and plant service improvements.
The group reported no borrowings during the period, consistent with the previous year.
Despite strong cash generation, Nampak continues to market its Zimbabwean unit for sale. In 2024, the group signed a sale and purchase agreement with TSL Limited for the disposal of its 51,43% stake for US$25 million, but the deal collapsed after TSL failed to secure shareholder support.
Nampak said the asset remains held for sale.
