Transpaco claws back lost profits in full-year results

© Dejan Krsmanovic – 123RF.com

In the year ended June 2015, the manufacturer, recycler and distributor of paper and plastic packaging products reported an 18.2% rise in diluted headline earnings per share (HEPS) to 243.3c, while operating profit grew by 12.6% to R110m compared with the year-earlier period.

Turnover for the period rose by 8.7% to R1.36bn and a final gross cash dividend of 74c per share was declared.

Transpaco said the significant increase in headline earnings was indicative of the company's resilience in still challenging times.

"After enduring a debilitating industry-wide strike during July and August 2014, the group continued its strong performance, with good turnover growth and a meaningful increase in headline earnings per share. Transpaco's performance was further strengthened by controlled operating costs. This was achieved by improved manufacturing, distribution and administration efficiencies," the company said.

Transpaco said its recent acquisition of East Rand Plastics, a refuse bag manufacturer, took effect from 1 August 2015.

"The business will be incorporated into Transpaco for an 11-month period in the current financial year and is expected to be earnings-enhancing into the future," the company said.

Looking ahead, CEO Phillip Abelheim said the company would continue to pursue expansion opportunities.

"Despite the challenging trading landscape, we are well-placed to achieve our organic growth targets by remaining focused on sound business and financial fundamentals and continuing to consider suitable earnings-enhancing acquisitions in growing the group," Abelheim said.