Press Room

Transpaco profit grows 14%

24 August 2011

Johannesburg - Packaging products manufacturer Transpaco on Wednesday reported diluted headline earnings per share of 195.7c for the year ended June 2011, up 14% from the previous year's 171c. HEPS increased by 11% to 214c.

The board declared a final cash dividend of 43c per share, resulting in a total dividend for the year of 72c per share - up 14% from the previous year's 63 cents.

As anticipated, the acquisition of Disaki Cores and Tubes with effect from November 2010 impacted positively on the group's results. Economic activity - defined as total turnover including inter-company turnover - reached the R1bn mark for the year, a milestone for Transpaco.

Operating profit rose 14% to R95.2m on a turnover of R954m, notwithstanding that market conditions in the plastic division led to margin compression resulting in a decline in operating profits in that division.

The operating profit in the paper division increased as a result of the Disaki acquisition. Cash generated from operations rose 30% to R129.1m.

Transpaco's net interest-bearing debt-to-equity position remains cash positive. Although the Disaki acquisition was funded out of existing cash resources, the group remains in a highly liquid position to take advantage of opportunities that may arise in the future, it said.

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