LAST year was a successful one for Mpact despite several challenges.
“Economic growth in SA remained subdued throughout the period with protracted strikes in the mining sector, as well as the metals and engineering sector‚ which‚ for the purposes of union bargaining units‚ included the group’s plastics business,” the company said.
Mpact was spun off from Mondi and listed in 2011. It manufactures packaging products‚ with particular focus on corrugated paper.
The company reported an 11.9% rise in annual revenue to R8.6-billion, compared to the year-earlier period.
Underlying operating profit‚ it said‚ lifted 14.8% to R751-million. Mpact has 32 operating sites‚ of which 22 are manufacturing operations.
Concerning its outlook for 2015‚ Mpact said the broader domestic economy was expected to remain subdued. However‚ lower oil prices would offer some benefit in its logistics and polymer costs.
“It is difficult to predict with certainty the full effect of Eskom’s load-shedding on the group. To date Mpact has experienced load-shedding on a number of occasions. Mpact has a variety of interventions in place to reduce the effects of load-shedding‚” it said.
Mpact also announced its intention to pursue a broad-based black economic empowerment (B-BBEE) ownership transaction through its wholly-owned subsidiary Mpact Operations.