DURBAN – JSE-listed Transpaco’s full year earnings are expected to decline by at least 45 percent for the year to end June, hit by a prolonged strike, depressed consumer environment and a weak South African economy.
Transpaco, a manufacturer, recycler and distributor of paper and plastic packaging products in South Africa, said on Tuesday that it expected its earnings per share (eps) and headline earnings per share (heps) to decline by between 40 and 45 percent for the year to end June.
The group expected its eps to be between 164.34 cents and 179.04c a share, down from last year’s 298.8c. It anticipated that its heps would be between 164.34c and 179.04c, down from last year’s 297.4c.
“An unprecedented prolonged three-month plastic industry strike impacted Transpaco during its busiest period … coupled with a depressed consumer environment,” the group said.
The strike was felt in the six months to end December period when it reported a 33.4 percent decline in profits to R36.8 million, down from R55.3m in the previous year.
But revenue was up by 23.6 percent to R1.08 billion boosted by the acquisition of Future Packaging and Machinery Group for R105m. It expects to release its results on August 21.
The share price closed unchanged at R17 on the JSE on Tuesday.