Nampak Zimbabwe reported a 9% increase in group revenue to US$67.8 million for the nine months ended June 30, 2026, driven by a 16% growth in overall sales volumes.

The growth was largely supported by strong carry-over demand for tobacco packaging in the first quarter.

The country’s leading packaging products supplier said metal packaging volumes declined significantly compared to the prior year due to subdued market demand and raw material supply chain disruptions.

Nampak managing director John Van Gend said volumes are, however, anticipated to improve modestly across all the business units in the final quarter of the financial year.

“While overall sales performance improved, metal packaging volumes remained below prior-year levels, and commercial carton volumes continued to be impacted by certain customers transitioning to in-house manufacturing capabilities,” he said in a trading update.

Despite the revenue performance, Van Gend said profitability remains under pressure due to rising costs and competitive market pricing to compete effectively given changed market dynamics.

Volumes at Hunyani Corrugated Products division for the nine months ended June 30, 2026 were 26% above the prior year, supported by a larger tobacco crop that increased carton volume demand in the first quarter.

At Mega Pak, volumes for the nine months ended June 30, 2026 were 8% above the prior year, reflecting the positive impact of increased demand in the quarter under review.

CarnaudMetalbox volumes were 4% above the prior year for the nine months under review as the business recovered from extended production-related stoppages in the first quarter.

Van Gend said heightened geopolitical tensions in the Gulf region and the ongoing Russia-Ukraine conflict are expected to sustain operating cost pressure across all the business units in the medium term.

He said the recent anti-immigrant demonstrations in South Africa may negatively affect regional economic activity through increased repatriation of foreign nationals and disruption to diaspora remittance flows.

“Despite these challenges, the group expects to benefit from the larger tobacco crop, within the paper segment, as well as continued volume recovery in the plastics segment,” he said.

“Management remains focused on strengthening operational efficiency, optimising costs and enhancing cash generation to support sustainable business performance and profitable growth. The group remains ungeared.”