Nampak has reported a resilient performance for the first half of 2026 (1H26), where strong growth across its African beverage operations and a sharp reduction in net finance costs successfully counteracted a steep decline in its South African Diversified division.

While overall revenue dipped slightly by 1% to R5.6 billion, the company demonstrated higher quality earnings and a significantly strengthened balance sheet, driven by a three-year strategic efficiency drive.

Beverage Divisions Bolster Performance

The group’s core Beverage operations proved to be the anchor of the half-year performance.

• Beverage Angola: Emerged as a standout performer, accelerating its normalised EBITDA by 28% to R187 million (up from R146 million in 1H25). This stellar contribution was driven by an improved economic environment, currency stability, increased consumer demand, and expanding regional export opportunities.
• Beverage South Africa: Delivered a stable performance, lifting normalised EBITDA by 4% to R533 million. Strong customer retention helped balance out lower export volumes to Zambia and Argentina, raw material supply disruptions, and the loss of can end exports following the group’s prior-year exit from Bevcan Nigeria.

On the infrastructure front, Nampak confirmed that the relocation of a surplus can manufacturing line from Angola to South Africa (the Springs Line 4 project) is moving ahead on time and within budget. The company invested R126 million into this project during the half-period, which is designed to boost production capacity and pack-format flexibility for the South African market.

Sharp Contraction in Diversified Business

In contrast to the buoyant beverage sectors, Diversified South Africa faced significant structural and environmental headwinds. The business unit saw a sharp contraction, with normalised EBITDA plunging 44% to R131 million.

Management attributed the decline to structural business losses within aerosols and closures, alongside supply chain vagaries impacting the fish and deciduous fruit sectors. Results were further impacted by temporary inventory management challenges and disruptions from customer pack alterations, which Nampak notes are not expected to recur. A comprehensive strategic review of the Diversified segment was completed during the half, and restructuring actions are currently underway.

Financial Highlights (Continuing Operations)

Despite a 6% drop in overall normalised EBITDA to R816 million (down from R865 million), Nampak’s bottom-line metrics and debt optimisation indicators improved substantially:

• Normalised Headline Earnings: Increased by 9% to R346 million, up from R317 million in 1H25.
• Normalised HEPS: Rose 8% to 4,131.6 cents per share.
• Net Finance Costs: Decreased by a dramatic 33% to R189 million (down from R282 million), aided by lower working capital and debt repayment funded by recent asset disposals.
• Cash Generation: Net cash generated from operating activities more than tripled to R256 million, up from R82 million in 1H25.
• Balance Sheet Capacity: Group net debt (excluding capitalised leases) was slashed by 30% to R2.2 billion, successfully driving down the group’s net gearing ratio from a heavy 149% to a far healthier 69%.

“Our results reflect performance resilience despite headwinds in Diversified,” said Riaan Heyl, Nampak chief executive officer. “The strategic clarity, revenue growth management discipline, and elevated cost efficiency focus instilled in the business during the past three years underpinned our sustained progress in improving operational profitability, cash generation, and debt reduction.”

Discontinued Operations and Portfolio Pruning

The group reported a loss of R114 million from discontinued operations, primarily weighed down by a R136 million after-tax asset impairment regarding Nampak Zimbabwe. The company’s 51.43% stake in the Zimbabwean entity remains classified as held-for-sale, with negotiations progressing with interested buyers to eliminate economic risk and further lower group debt.

Taking into account the non-recurrence of 1H25’s massive R2.5 billion accounting profit (triggered by the disposal of Bevcan Nigeria), total operations post-tax profit sat at R410 million. Net asset value (NAV) per share showed robust health, surging 61% to 34,759.2 cents.

Looking Ahead

Moving into the second half of the year, Nampak anticipates that the beverage sector will remain relatively insulated against broader macroeconomic sluggishness and inflationary pressures. Backed by expanded container flexibility in South Africa, a booming Angolan growth engine, and a structural reset of the Diversified division, the packaging leader states it is firmly positioned to maintain double-digit EBITDA margins across its core operations.