Mpact managed to increase its dividend and operating profit in 2023 despite a sharp decline in sales volumes. (MPact/Twitter/X)
Mpact, Africa's largest paper and packaging business and recycler, has announced that it generated a record R2 billion in cash in 2023, despite facing volume pressures from a tough consumer economy. Despite a double-digit decline in sales volumes, the company is busy repositioning its portfolio to focus on products that are in high demand, while there are still bright spots such as SA fruit exports.
The company, valued at about R4.2 billion on the JSE, said on Friday that group revenue from continuing operations rose 3.6% to R12.8 billion in the year to the end of December, despite a 10.7% decline in sales. reported. As a result of margin recovery and several recently completed projects, operating income increased and overall earnings per share increased by 8% for him.
Cash generation almost doubled to approximately R2 billion. This was primarily due to a positive working capital effect during factory downtime as the company sought to preserve cash, but there was also an improvement in operating profit. However, the company's profits still fell by approximately 2.5% to R777.5 million, mainly due to non-cash writedowns of approximately R92 million on its plastic preforms and closures business.
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