Johannesburg - Diversified manufacturer Astrapak has seen its restructuring (now in its second year) deliver increased revenue and reduce losses from continuing operations.
The company, which manufactures plastic, household goods and automotive lubricants, has reduced the number of its manufacturing facilities from 23 to nine.
“This has been a very difficult process, with the past year in particular having had the added external challenges of electricity supply and strikes, both of which caused the group to incur irrecoverable losses,” the company said in a statement in reference to the year ended in February.
Revenue was up 7.8 percent to R14 billion while the sale of non-core businesses realised R148 million, with a further R149 million still to be realised in the 2016 financial year.
Profit from continuing operations rose 49 percent to R61.5 million, but overall losses, including disposed business worsened from 67.5 cents to 114.4 cents. Loss from continuing operation eased significantly, falling 78.4 percent to 2.1 cents.
“We are exiting businesses that do not fit with our technology focus and long-term return criteria and continue to bring in the correct human capital. At the same time, we have not lost sight of building for the future and earning the confidence of customers, funders, suppliers and employees,” the group said of its expansion plans, which in the last financial year cost R80 million.
The group sold its Hilfort plastic manufacturing plants in Cape Town, Bloemfontein and Upington and is in the process of disposing of Cinqpet and East Rand Plastics.
The company said the markets it serves were likely to remain soft, but said it had successfully secured long-term supply contracts.
No dividend was declared.
ANA