Latest news with #Mpact
Daily Maverick
05-08-2025
- Business
- Daily Maverick
After the Bell: SA's economy — it's the politicians, stupid
The main reason the US tariffs are having such a big impact on us is because we're so weak, yet our leaders seem impotent in the face of it. In the past couple of weeks, friends of mine who have come to Joburg for business or a meeting (or, in one brave case, to actually find a house to buy because they're moving back) have all used the same phrase to describe the city. They say, with some feeling, it's like 'a war zone'. What they're really pointing to is the visible damage to the city, the potholes that have been there for so long they have plants, trees and, in at least one case, a birthday party. And, of course, treated, drinkable water just flows down the street because Joburg Water is such a mess. At the same time, every minister and official and political person is now talking about the US tariffs. And watch, in about five minutes after you read this, they're going to start blaming the tariffs for our economic situation. Actually, it's really them. On Monday night, the Mpact CEO Bruce Strong told me on The Money Show that in the six months to the end of June, their facility in Ekurhuleni had been without power for 18 days. This is a 24-hour factory. It produces packaging and paper. Can you imagine workers sitting around with nothing to do for 54 whole shifts? It's the same in the Eastern Cape. For all of the tears being spilt around our car industry and the factories there, so many of their problems are really about local government. But no, we will be told it's the impact of the US tariffs. And, of course, as we all know, almost every council outside the Western Cape just can't manage their money. It's now at the point that National Treasury has in effect told the Joburg mayor, the ANC's Dada Morero, that it will refuse to pay some of their national grant, simply because Morero has done nothing to sort out how the money is treated. The coalition in Joburg is so fragile that Morero has not even appointed a new mayoral committee member for finance. Now, some of the smaller parties are demanding that their candidate, Kabelo Gwamanda from Al Jama-ah, must get the job. Just imagine this for a minute. You have a group of parties, some of them with just one councillor, insisting that their person take over the finance role in the country's biggest city. Knowing all along that they are largely responsible for the situation we find ourselves in. Last night, the ANC finally finished its long-postponed NEC meeting. One of its proclamations was that we are now in an 'economic state of emergency'. My first thought was that they had stolen the idea from Lesotho. Obviously, you have to ask yourself: How did it happen? Does the ANC really understand the role that its economic policy, and our broken politics generally, has played in this? Of course, you cannot blame one party. If you look at all of our neighbours, they have almost exactly the same unemployment rate as ours. Even Botswana, which so many kept saying was run so well for so long. Over the past couple of days, plenty of good well-meaning people have made the same point: we need a national effort, we need to work together to fix our economy. And, obviously, they're right. The main reason the tariffs, and everything else that is happening in the world (and it's a long list at the moment), are having such a big impact on us is because we're so weak. And yet, strangely, our leaders seem, well, impotent in the face of it. We need action, not a 'National Dialogue'. I can't believe I have to say this out aloud. But the one thing we absolutely do NOT need to do is talk. Now, I hate to have to say this, but do you believe there is any reason this is going to improve? Me too. Instead, what I think is going to happen is that our politicians, each chasing a smaller sliver of support, are going to shout and scream, and try to make it all about them. My greatest fear is that, in fact, we will end up with a national government in the future that is a lot like Joburg's now. Of course, nothing is predestined. There can be a lot of change. And, considering the nature of our society, there probably will be. But when our politicians start to blame the US, or Trump, or whoever, for our economic situation, we must remind them who is really responsible. It's the politicians. Not us. DM
IOL News
04-08-2025
- Business
- IOL News
Mpact maintains interim dividend despite lower profits and challenging market conditions
Daily operations at an Mpact recycling plant include the sorting, shredding and packing of material. Some plastics can also be recycled. Paper and plastics packaging group and recycler Mpact's headline earnings fell in the six months to June 30, but it has predicted a much strong second half even though the South African economy was unlikely to improve materially. Image: Supplied South Africa's biggest paper and plastics packaging business and recycler Mpact maintained its interim dividend at 30 cents a share despite lower profit as it is confident of an improved performance in the second half. This was according to financial director Hannes Snyman, who, along with CEO Bruce Strong, was interviewed at the release of the results for the six months to June 30. Underlying earnings before interest, depreciation and amortisation fell by 14.5% to R625 million and operating profit lower by 25.5% to R315m. Headline earnings per share decreased to 93 cents from 128.1 cents. Strong said the lower earnings were primarily the result of persistent and lagging demand in South Africa due to the weak macroeconomic environment, traditionally lower sales in the first half in the plastics business, and product optimisation in the PET conversion and closure plant, which had led to additional costs. He said they continued to face a persistently challenging trading environment. The general economy remained subdued, despite lower interest rates and inflation, while uncertainty across local and global markets negatively impacted business confidence. And while they did not expect to be seriously impacted by higher US import tariffs, there might be secondary impacts further into the future, such as, for example, as it pertains to other South African manufactured exports, said Strong. During the six-month period, good volume growth was realised in containerboard and fruit packaging - these were two sectors in particular, that the group had focused on in its strategy of growing and investing in innovative, higher-margin, and sustainable products. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ But these gains, however, were offset by declines in industrial sales volumes due to portfolio optimisation and depressed consumer demand. Progress on capital projects continued. At the R1.3 billion upgrade at the Mkhondo mill, commissioning of the sodium lignosulphonate (SLS) plant was completed, and the pulp mill upgrade was in its final stage of construction. The pulp mill would be commissioned in the third quarter of this year, said Strong. Thereafter, several months would be required to optimise both plants to reach design specifications and conduct SLS customer trials. In the first half, the paper business was impacted by the global cyclical downturn in the paper industry, which led to lower margins, as selling prices decreased more than input costs, particularly due to higher local recovered paper prices. Local and export containerboard volumes grew due to the competitive position of the Felixton paper mill. Fruit sector demand was up, with good growth in plastic crates and citrus cartons partially offset by lower sales volumes in banana and avocado cartons. 'We anticipate continued growth in the agricultural sector in the second half,' said Strong. The industrial market remained weak, impacting the Springs mill, the Paper Converting business, and beverage crates. The FMCG Wadeville's volume fell significantly following expiry of two supply contracts with a major customer. Paper business increased 6.9% to R5.4bn, due to a 5.9% increase in sales volumes and a 1% increase in average selling price. Gross profit was in line with the prior period. The Recycling business increased collection volumes. Recovered paper prices were up significantly due to continued export demand, especially from India. Paper Manufacturing increased containerboard sales volumes by 20.3% following interventions at the end of 2024 to increase exports and displace imports. Cartonboard sales volumes from the Springs paper mill fell by 9.5% due to subdued local market conditions and import competition. The Springs mill took 15 days of commercial downtime in the current period to manage stock levels. In addition, the mill incurred 18 days of downtime due to external utility supply interruptions. Revenue in the Plastics business decreased by 14.7% to R936m. The group expected an improved full-year result from the Plastics business compared to the prior year. Visit:
IOL News
16-07-2025
- Business
- IOL News
Mpact reports mixed results: HEPS down, revenue up in challenging market
An Mpact Recycling operation at Bridge City, Kwamashu, north of Durban. The group operates across 38 sites in southern Africa, including 21 manufacturing and 14 recycling facilities. Image: Supplied Mpact's headline earnings a share (HEPS) from continuing operations will likely decline between 28% and 18.2% in the six months to June 30, even though revenue should increase by about 3%. The JSE-listed paper and plastics packaging group said in a trading statement on Wednesday that HEPS is expected to be between 88 and 100 cents per share, compared with 122.2 cents at the same time last year, in a persistently challenging trading environment. The group said uncertainty in local and global markets had contributed to poor business sentiment, despite that lower interest rates and lower inflation, and consumer demand remained weak. The detailed half-year results are expected to be released around August 4, 2025. Mpact directors said, however, they were making 'good progress' on development projects that focus on growth sectors and investments in innovative, higher-margin, and sustainable products. 'We remain confident in our value-enhancing strategy and future prospects,' they said. Revenue in the Paper business was up by about 7% due to higher containerboard sales volumes, partially offset by lower cartonboard and corrugated sales volumes. No commercial downtime was taken at Felixton and Mkhondo paper mills in the first half. Containerboard sales volumes increased due to growth in exports and market share gains in the local market, while carton board sales volumes were lower due to weak local demand and lower-priced imports, which resulted in some commercial downtime at the Springs paper mill. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Corrugated sales volumes were down due to weak industrial demand. Despite an overall increase in revenue, higher recovered paper prices, energy, and fixed costs resulted in lower operating profit for the Paper business. The Plastics business saw revenue fall by about 15% compared to the prior period. As anticipated, FMCG (fast-moving consumer goods) Wadeville's sales volumes were down "significantly" due to the expiration of two contracts with a major customer last year. 'Although the business has been able to find replacement customers for some of the lost volumes, the uptake has been slower than anticipated. Sales volumes were also down in Bins & Crates, mostly due to lower beverage crate sales, which were somewhat offset by good growth in agriculture crates,' the directors said. Historically, Bins & Crates' sales and profitability have been heavily weighted towards the second half of the year, and the trend is expected to remain the same this year. Both FMCG Pinetown and Atlantis experienced good sales volume growth, due to new projects and growth from existing customers. Group earnings before interest, tax, depreciation, and amortisation (EBITDA) were expected to decrease by about 15% compared with R731 million at the end of June 2024, and underlying operating profit by about 26% compared with R423m in June last year. Net debt decreased to about R2.99 billion from R3.23bn in the prior period. Mpact's share price fell slightly by 0.08% to R24.90 on the JSE on Wednesday afternoon - the price had trended downwards from R28.76 a year ago. Visit:
Yahoo
05-04-2025
- Business
- Yahoo
There's A Lot To Like About Mpact's (JSE:MPT) Upcoming R00.75 Dividend
Readers hoping to buy Mpact Limited (JSE:MPT) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. The ex-dividend date is commonly two business days before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. The ex-dividend date is important as the process of settlement involves at least two full business days. So if you miss that date, you would not show up on the company's books on the record date. This means that investors who purchase Mpact's shares on or after the 9th of April will not receive the dividend, which will be paid on the 14th of April. The company's next dividend payment will be R00.75 per share, and in the last 12 months, the company paid a total of R1.05 per share. Last year's total dividend payments show that Mpact has a trailing yield of 3.8% on the current share price of R027.49. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! As a result, readers should always check whether Mpact has been able to grow its dividends, or if the dividend might be cut. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. That's why it's good to see Mpact paying out a modest 32% of its earnings. Yet cash flows are even more important than profits for assessing a dividend, so we need to see if the company generated enough cash to pay its distribution. Luckily it paid out just 20% of its free cash flow last year. It's positive to see that Mpact's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. View our latest analysis for Mpact Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. That's why it's comforting to see Mpact's earnings have been skyrocketing, up 40% per annum for the past five years. Mpact is paying out less than half its earnings and cash flow, while simultaneously growing earnings per share at a rapid clip. Companies with growing earnings and low payout ratios are often the best long-term dividend stocks, as the company can both grow its earnings and increase the percentage of earnings that it pays out, essentially multiplying the dividend. Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the last 10 years, Mpact has lifted its dividend by approximately 2.3% a year on average. It's good to see both earnings and the dividend have improved - although the former has been rising much quicker than the latter, possibly due to the company reinvesting more of its profits in growth. Is Mpact an attractive dividend stock, or better left on the shelf? Mpact has grown its earnings per share while simultaneously reinvesting in the business. Unfortunately it's cut the dividend at least once in the past 10 years, but the conservative payout ratio makes the current dividend look sustainable. There's a lot to like about Mpact, and we would prioritise taking a closer look at it. On that note, you'll want to research what risks Mpact is facing. In terms of investment risks, we've identified 2 warning signs with Mpact and understanding them should be part of your investment process. If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
13-03-2025
- Business
- Yahoo
Mpact (JSE:MPT) Is Paying Out A Dividend Of ZAR0.75
The board of Mpact Limited (JSE:MPT) has announced that it will pay a dividend of ZAR0.75 per share on the 14th of April. The dividend yield will be 3.7% based on this payment which is still above the industry average. See our latest analysis for Mpact If the payments aren't sustainable, a high yield for a few years won't matter that much. Before making this announcement, Mpact was easily earning enough to cover the dividend. This means that most of what the business earns is being used to help it grow. Over the next year, EPS is forecast to expand by 94.0%. Assuming the dividend continues along recent trends, we think the payout ratio could be 17% by next year, which is in a pretty sustainable range. Although the company has a long dividend history, it has been cut at least once in the last 10 years. Since 2015, the dividend has gone from ZAR0.84 total annually to ZAR1.05. This works out to be a compound annual growth rate (CAGR) of approximately 2.3% a year over that time. We're glad to see the dividend has risen, but with a limited rate of growth and fluctuations in the payments the total shareholder return may be limited. With a relatively unstable dividend, it's even more important to see if earnings per share is growing. Mpact has seen EPS rising for the last five years, at 40% per annum. Earnings have been growing rapidly, and with a low payout ratio we think that the company could turn out to be a great dividend stock. Overall, we like to see the dividend staying consistent, and we think Mpact might even raise payments in the future. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All in all, this checks a lot of the boxes we look for when choosing an income stock. Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. As an example, we've identified 1 warning sign for Mpact that you should be aware of before investing. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
