Nampak is Africa’s largest diversified packaging group. We are the market leader in manufacturing beverage cans in South Africa, Nigeria and Angola and have commanding positions in other metal, glass and plastic packaging. We are the sole producer of cigarette cartons in Nigeria and a significant manufacturer of paper packaging in many other African countries. For more than 70 years we have invested in world-class facilities in 11 countries in Africa as well as in the United Kingdom and Ireland.
Our 6 678 people provide leading-edge packaging to our customers, some of whom are among the world’s largest FMCG companies. Nampak has a well resourced R&D facility that provides innovative solutions which fully supports our varied customers’ packaging requirements. We support recycling, reuse and recovery of used packaging. Our strategy is to unlock further value from our base business and accelerate growth in the Rest of Africa.
To provide best-in-class packaging throughout our selected markets
To deliver sustainable value to stakeholders as a responsible corporate citizen and leader in packaging in our selected markets
Challenging macro-economic environemnt in key markets
Liquidity restrictions and the exposure of restricted cash to currency volatility
Our operational and financial performance
People - safety, skills and transformation
Uncertain regulatory and policy environment
How we performed in 2016
In the face of macro-economic challenges that led to demand and currency volatility, Nampak delivered improved trading results for 2016.
South African property sale and leaseback
Net increase in cash of R4.2 billion versus decrease of R1.5 billion in prior year.
Revenue from the Rest of Africa up
Contribution to group trading income 52%
Reduced net gearing from
72% to 49%
Abnormal foreign exchange losses in Nigeria and Angola of R681 million due to in-country dollar shortages
Cash extraction from Rest of Africa up from 59% to
swing in Glass's profitability
Nampak apprenticeships increased by 18% to
Achieved LTIFR of
against the target of 0.50
Recycled 59 000 tonnes of glass
Cut water consumption by
9% reduction in CO2 emissions per R million revenue
Corporate social investment spend of
In South Africa and a further R1.0 million in Rest of Africa.
How we create value using the six capitals
We create value by converting raw materials into packaging products used to protect, preserve and transport consumer products. To do this, we rely on various relationships and resources, which we refer to as the six capitals.
We need inputs of each to deliver on our strategy and generate value for all stakeholders. We carefully consider the trade-offs between the capitals, aiming to maximise positive outputs and outcomes, and limit any negative impacts.
The health, skills, safety. initiative and diversity of our people, suppliers and partners
Our production and research facilities; cullet, tinplate, aluminium, plastic and paper; public infrastructure
Equity and debt financing as well as cash generated from operations and investments
Our experience; proprietary and licensed technology; innovation; operational, marketing and procurement excellence initiatives
suppliers; trade unions; industry
bodies; governments; our brand
and reputation, regulatory
Water, land, air, limestone, sand and soda ash
Our business model
Informed by our vision, mission, values and governance, this supports delivery of our strategy and is our approach to people, processes and product:
- Attract, develop and retain engaged employees
- Develop and manage stakeholder relationships
- Ensure accountability
- Deliver an empowered company
- Maintain a safe workplace
- Secure our advantage by buying, making and selling better
- Manufacture to the best quality and environmental standards
- Continuously improve our performance
- Provide reliable, fit-for-purpose products
- Ensure consistent quality
- Support initiatives to reduce, reuse, recycle
- Invest in innovation through research and development
By considering our operating environment and our material issues, we ensure that we are responsive to changes and are able to adapt.
Dependable packaging products made of metals, glass, plastics and paper
28.67 tonnes CO2e per Rm revenue
6 678 employees
paid in wages and salaries employees
Trading profit of
R1.9 billion 4%
raised from property sale and leaseback
Reduced gearing from
72% to 49%
in capital expenditure
Asset impairments of
predominantly Angolan tinplate line
spent on R&D
social investment in South Africa
of cullet used in glass manufacturing process
Chief executive's report
Building on the achievements of 2015, in 2016 we focused our efforts on unlocking further value from our base business. We put in place comprehensive plans to ‘buy, make and sell better’ and in so doing generate more cash, and moved closer towards completing our asset recapitalisation programme that is already enhancing our efficiency and competitiveness. Our operational performance improved markedly.