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Unaudited Condensed Interim Results for the six months to 31 December 2023 and Dividend Announcement

Published: 2024-02-19 15:15:24 ET

                                  UNAUDITED CONDENSED INTERIM RESULTS
                   FOR THE SIX MONTHS TO 31 DECEMBER 2023 AND DIVIDEND ANNOUNCEMENT




                                                                 Registration number 1951/000799/06 | ISIN: ZAE000007480 | JSE Share code: TPC
                                                                                         (“Transpaco” or “the Company”)


            A leading manufacturer and distributor of plastic and paper packaging products

       NET ASSET VALUE PER SHARE 3 090 CENTS  HEADLINE EARNINGS PER
       SHARE DOWN 5,6% TO 299,1 CENTS  DIVIDEND PER SHARE 80 CENTS
FINANCIAL RESULTS                                                                                           The salient dates for the dividend are as follows:
                                                                                                            Last date to trade shares cum dividend                                         Tuesday, 12 March 2024
                                                           Unaudited
                                            Unaudited     six months        Unaudited          Audited      Shares trade ex-dividend                                                     Wednesday, 13 March 2024
                                           six months      December        six months       12 months       Record date                                                                      Friday, 15 March 2024
                                            December            2023        December             June       Payment date                                                                   Monday, 18 March 2024
                                                 2023      % change             2022             2023
  Revenue (R'000)                             1 377,2             (4,5)       1 442,1         2 591,1       Share certificates may not be dematerialised or rematerialised between Wednesday, 13 March 2024 and
  Operating profit (R' million)                 126,3            (12,3)         144,0           252,5       Friday, 15 March 2024, both days inclusive.
  Profit before taxation (R' million)           121,4            (11,0)         136,4           239,7       ADMINISTRATIVE INFORMATION
  Earnings and diluted earnings per                                                                         This short-form announcement is the responsibility of the directors and is only a summary of
  share (cents)                                 299,1             (5,4)         316,1            567,9
                                                                                                            the information in the full announcement. The full announcement was released on SENS on
  Headline and diluted headline earnings
  per share (cents)                             299,1            (5,6)          316,7           567,8       19 February 2024, and can be found on the company’s website at www.transpaco.co.za and on
  Total gross dividend per share (cents)         80,0            (5,9)           85,0           260,0       the following JSE link: https://senspdf.jse.co.za/documents/2024/jse/isse/TPC/Interims.pdf
  Net asset value per share (cents)           3 090,0            10,8         2 788,0         2 958,0       Any investment decision should be based on the full announcement published on SENS and on the
  Operating margin %                              9,2            (8,0)           10,0              9,7      company’s website.
  Net interest-bearing debt: equity                                                           Net cash
  ratio (%)                                        5,4           39,3              8,9         positive     Copies of the full announcement may be requested from the company secretary at
                                                                                                            Hendrik@transpaco.co.za.
INTRODUCTION
                                                                                                            On behalf of the board
Transpaco’s results for the six months ended 31 December 2023 (“the period”) reflect a 5,6% decrease
in headline earnings per share (HEPS) to 299,1 cents (December 2022: 316,7 cents). Trading conditions       DJJ Thomas                                PN Abelheim                              L Weinberg
remained challenging due to rampant load shedding, a stagnant economy and high interest rates.              Non-executive Chairman                    Chief Executive Officer                  Chief Financial Officer
However, Transpaco’s share buyback strategy curtailed the negative impact on HEPS. Revenue decreased        19 February 2024
by 4,5% to R1 377,2 million (December 2022: R1 442,1 million) with operating profit down 12,3% to
R126,3 million (December 2022: R144,0 million). Revenue in the Plastics Division decreased by 10,1%,        DIRECTORS
while conversely revenue in the Paper and Board Division increased by 2,6%. Traditionally revenue is        DJJ Thomas (Chairman)*; PN Abelheim (Chief Executive); L Weinberg (Chief Financial Officer);
higher in the first six months of the financial year due to the seasonal nature of the business. The        HA Botha**; SR Bouzaglou; SY Mahlangu**; SP van der Linde (Lead Independent Director)**
reduction in operating margin to 9,2% (December 2022: 10,0%) contributed to the decrease in the             * Non-executive          ** Independent non-executive
group’s operating profit by 12,3%.                                                                          Transpaco Limited Registration number: 1951/000799/06, Share code: TPC, ISIN: ZAE000007480
DIVIDEND                                                                                                    Auditors BDO South Africa Incorporated Company Secretary HJ van Niekerk
The board has declared an interim gross cash dividend out of income reserves of 80,0 cents per share
                                                                                                            Sponsor Investec Bank Limited
(December 2022: 85,0 cents per share) for the six-months ended 31 December 2023. After applying the
dividend withholding tax of 20%, a net interim dividend of 64,00000 cents per share will be paid to those   Registered office 331 6th Street, Wynberg, Sandton Transfer secretaries Computershare Investor
shareholders who are not exempt from the dividends tax. The issued shares at the date of declaration is     Services (Pty) Limited, Rosebank Towers, 15 Biermann Avenue, Rosebank, Johannesburg
28 839 388 ordinary shares. The Income Tax reference number is 9975/112/71/6.                               Website www.transpaco.co.za

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Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.