Transpaco claws back lost profits in full-year results
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.