Mpact interim HEPS down 31.7%

Mpact, Africa's largest paper and packaging manufacturer, has recently released its first-half results amid a challenging global economic environment. The company's CEO, Bruce Strong, spoke with CNBC Africa to discuss the impact of current market conditions on Mpact's business operations and future growth prospects. Despite facing a 31.7% decrease in headline earnings per share, Strong remains optimistic about the company's resilience and ability to navigate through uncertain times. Strong emphasized the importance of focusing on factors within the company's control and highlighted Mpact's strategic investments in capital projects, such as the recent investment in Iran. These investments have positioned Mpact favorably to weather potential economic downturns and enhance its competitiveness against import competition. The pricing environment in the first half of the year was challenging for Mpact, with pricing softening compared to the previous year. However, Strong noted that Mpact remains profitable and anticipates a stronger second half, driven by strategic initiatives that are less dependent on consumer spending growth in South Africa. Initiatives aligned with the fruit export sector, home deliveries, and essential service infrastructure projects are expected to contribute positively to Mpact's future growth. Furthermore, Strong highlighted the positive developments in the South African economy, including the extended period without load shedding, improvements in port infrastructure by Transnet, and energy market reforms. He expressed optimism about the potential value unlocking opportunities for businesses following the establishment of the independent National Transmission Company, which will allow private players to enter the electricity supply and distribution market. While Mpact faces challenges in some overborder markets in Africa, such as Zimbabwe and Zambia, the company's focus remains on developing its business in South Africa and leveraging export opportunities in the fruit sector. Strong emphasized the growth potential in the fruit sector due to significant investments by producers, which are expected to yield returns in the coming years. In conclusion, despite the current economic uncertainties, Mpact remains committed to driving growth through strategic investments, operational resilience, and market diversification. Strong's confidence in Mpact's ability to navigate challenges and capitalize on emerging opportunities reflects the company's robust long-term outlook.