Nampak Share Price Rebounds as Turnaround Strategy Posts Robust Profit Growth
The JSE-listed packaging company Nampak reported impressive earnings growth on Monday, December 8, highlighting the success of its ongoing..
Quick overview
- Nampak reported a nearly doubled attributable profit of R1.2 billion for the year ending September 30, 2025, driven by an 8% revenue increase.
- Despite short-term stock volatility, Nampak's share price has risen significantly since 2023, closing at R530 after a recent 4% rebound.
- The company achieved a 26% increase in EBITDA, with a margin expansion to 17.3%, while also reducing net debt by 52% to R2.1 billion.
- Challenges remain due to a stagnant South African economy and underperformance in the diversified segment, impacting overall operations.
The JSE-listed packaging company Nampak reported impressive earnings growth on Monday, December 8, highlighting the success of its ongoing turnaround plan, even as its shares experienced short-term volatility.
Share Price Movement
Nampak’s stock initially dipped for three consecutive days following the results but rebounded on Thursday, climbing 4% to close at R530. The share has been on a steady upward trajectory since 2023, rising from a low of R95. On the monthly chart, however, these gains remain modest compared to the peaks recorded a decade ago.
NPKJ Chart Monthly – Trend Has Turned Bullish After the Massive Fall
The price has broken above both the 20-month (gray) and 50-month (yellow) simple moving averages, yet significant buying momentum will be needed to push it toward stronger levels.
Financial Performance
The company’s attributable profit nearly doubled to R1.2 billion for the 12 months ending September 30, up from R625.6 million the previous year. Revenue from continuing operations grew by 8% to R10.7 billion. This translated into earnings per share of 13,971.8 cents, compared to 7,554.0 cents last year, while headline earnings per share jumped to 10,510 cents from 3,361.1 cents. No dividends were declared.
Nampak Ltd Earnings Report (12 Months to September 30, 2025)
Release Date: December 08, 2025
Financial Highlights
Revenue: Up 8% to ZAR10.7 billion from ZAR10 billion.
Trading Profit: Increased 26% to ZAR1.3 billion from ZAR1 billion.
- EBITDA: Rose 26% to ZAR1.9 billion; margin expanded from 14.8% to 17.3%.
- Cash Generated from Operations: ZAR2.2 billion, up 38% from ZAR1.6 billion.
- Net Debt: Reduced by ZAR0.5 billion to ZAR2.1 billion (52% decrease).
- Net Debt-to-EBITDA Ratio: Improved to 2x from 3.4x.
- Headline Earnings: Increased 213% to ZAR872 million from ZAR278 million.
- Return on Invested Capital: 22.7%, up from 17.2%.
- Finance Costs: Down 45% to ZAR508 million from ZAR926 million.
- Beverage South Africa Revenue: Up 6% to ZAR6.5 billion.
- Beverage Angola Revenue: Up 12% to ZAR1.1 billion.
- Diversified Revenue: Up 2%; trading profit down 12%.
- Operating Profit Margin: Improved to 14.9% from 12.5%.
- Net Asset Value per Share: Increased 110% from ZAR142 to ZAR298.
Positive Points
- Strong top-line growth of 8% with trading profit more than tripling to ZAR1.3 billion.
- EBITDA rose 26% to ZAR1.9 billion; margin expanded to 17.3%.
- Overheads reduced by 7%; net debt cut to ZAR2.1 billion.
- Angolan operations performed well with 12% revenue growth and 30% EBITDA increase.
- Maintained robust cash flow: ZAR2.2 billion from operations; ROIC at 22.7%.
Negative Points
- Stagnant South African economy and structural declines in FMCG categories impacting operations.
- Diversified segment underperformed: only 2% revenue growth, trading profit down 12%.
- Challenges with new production line installation, missing key trading periods (summer, Easter).
- Ongoing municipal degradation in South Africa increases operational self-reliance requirements.
- Risks in raw material supply for fish canning affecting production continuity.
Operational Highlights
Nampak’s results reflected strong earnings growth, significant reductions in net finance costs, and lower net debt. The improvements were supported by asset disposals and enhanced cash flows, according to Glen Fullerton, the company’s chief financial officer, during the presentation.
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