Nov. 21 (Bloomberg) -- Nampak Ltd., a South African packaging company, said its full-year profit nearly doubled as it ramped up expansion in fast-growing economies elsewhere in Africa.
Net income rose 92 percent to 1.2 billion rand ($134 million) in the 12 months through September from a year earlier, the Johannesburg-based company said today in a statement. Revenue advanced 12 percent to 17.6 billion rand. Earnings per share increased 90 percent to 1.97 rand, broadly in line with an average estimate of 1.98 rand according to nine analysts surveyed by Bloomberg.
“The strategy of investing in our core business in South Africa and growing and investing in businesses across Africa over the last three years is expected to enable the group to further improve on performance in 2013,” the company said.
South Africa’s economic growth is expected to slow to 2.5 percent this year, the lowest since a 2009 recession, according to government estimates. The decline has prompted many companies to look to faster-growing African economies to boost growth.
Nampak raised the dividend 20 percent to 129.5 cents a share. The shares rose 3.75 percent to 30.19 rand by 3:55 p.m. in Johannesburg, the most on an intraday basis since Oct. 8. About 900,000 shares changed hands, or 62 percent of the daily average over the last three months.
The company said on Sept. 5 it is evaluating projects worth $498 million outside South Africa over the next three to five years. The company is considering investments worth $350 million in West Africa and $120 million in Angola and Mozambique, it said.
Nampak’s trading profit from the rest of Africa increased from 122 million rand to 316 million rand, primarily due to operations in Angola and Zambia, according to the statement.
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