NAMPAK Zimbabwe’s volumes for the first quarter to December 31, 2025, rose by 39 percent year-on-year, buoyed by a carryover of late-season tobacco case orders and improved demand in the key plastics categories.
Group revenue for the review period was 19 percent ahead of the comparative prior year, reflecting stronger volumes, particularly from the tobacco sector, following a larger crop from the previous marketing season, as well as higher PET and preform sales.
Nampak Zimbabwe group managing director Mr John Van Gend said the results underscored the resilience of the company’s diversified packaging portfolio, despite persistent operational and competitive pressures across some business units.
“The first quarter benefited significantly from the carryover of late-season tobacco orders, which lifted volumes well ahead of last year. “At the same time, we saw encouraging improvements in PET and preform demand, although certain segments continued to face headwinds,” he said.
Mr Van Gend noted that while overall demand conditions were improving, commercial corrugated volumes remained subdued due to weak demand and an increasingly competitive market.
He added that metal volumes were also significantly lower than the prior year due to raw material supply chain delays and deliberate product rationalisation to align output with prevailing market demand.
“Volumes across all our business units are expected to firm up in line with steady demand for packaging, although this will depend on how supply chain constraints and operating conditions evolve,” Mr Van Gend added.
In the printing and converting segment, performance at Hunyani Paper and Packaging was mixed, with strong growth in tobacco-related products offset by softer demand in commercial packaging.
Sales volumes at the Hunyani Corrugated Division surged by 73 percent in the opening quarter compared to the prior year, driven mainly by a large carryover of late-season orders from local tobacco merchants.
Mr Van Gend said the tobacco sector continued to underpin demand and expects volumes for the forthcoming season to remain stable, despite intensifying competition in the corrugated market.
“While tobacco demand remains supportive, we anticipate a tougher competitive landscape going forward, particularly in commercial cartons,” he said.
Commercial carton volumes during the quarter were 11 percent below the prior year, as demand softened and some customers shifted towards self-manufacturing their own packaging.
In the Cartons, Labels and Sacks Division, sales volumes declined by 10 percent compared to the same period last year.
“This was despite improved demand for tobacco paper wrap, as weaker commercial packaging volumes weighed on overall performance,” said Mr Van Gend.
The plastics and metals segment delivered a mixed outcome, reflecting both demand improvements and operational constraints.
At Mega Pak, first-quarter sales volumes were 10 percent ahead of the prior year, supported mainly by stronger PET (Polyethylene terephthalate) and preform demand, partly driven by peak festive season consumption.
HDPE (High-Density Polyethylene) volumes, however, were marginally lower than in the comparative period.
Mr Van Gend said operations at the Ruwa plant were affected by persistent power challenges, which led to frequent stop-starts and increased plant breakdowns.
He noted that reliance on generators during power outages increased operating costs and limited available production hours.
“We continue to actively monitor power-related costs and are exploring more cost-effective and sustainable energy supply alternatives to improve operational efficiency,” he said.
Carnaud Metalbox reported a 15 percent decline in sales volumes for the quarter, with all product categories below prior-year levels.
Mr Van Gend said performance was constrained by plant breakdowns and ongoing supply chain delays, which affected the availability of raw materials.
Looking ahead, Nampak Zimbabwe remains cautiously optimistic about the operating environment and contends that supportive fiscal and monetary policies remain key to achieving strong performance.
“The outlook for the business depends on sustained efforts by fiscal and monetary authorities to maintain economic stability and create conditions that allow the business community to thrive,” Mr Van Gend said.
He added that the group will continue to focus on improving operations, reducing costs, and spending capital wisely to build capacity, profitability and support sustainable growth in the medium term. – Herald
