Nampak CEO puts paid to investors’ debt concerns

Nampak, a packaging company in South Africa, has recently come under scrutiny from investors and analysts for its debt management strategies. The company's CEO, André de Ruyter, sat down for an interview with CNBC Africa to address these concerns and shed light on the challenges facing the South African economy. De Ruyter expressed his worries about the state of the South African economy, citing flat to negative consumer demand and pressure on retailers as key indicators of economic distress. With 40% of Nampak's operating profits coming from South Africa, the company is feeling the impact of the economic slowdown. Despite these challenges, Nampak is taking proactive steps to manage its debt and strengthen its financial position. De Ruyter discussed the ongoing sale of a glass business, which is expected to generate proceeds that will be used to reduce debt. The CEO emphasized the importance of prudent financial management and highlighted Nampak's compliance with debt covenants. Additionally, he mentioned the possibility of using the proceeds to buy back shares instead of declaring a special dividend, as he believes this approach would be more beneficial for shareholders. Looking ahead, Nampak is focused on navigating currency volatility and maintaining a strong balance sheet to support its operations in Africa. While the company has recently sold a cartons business in Nigeria, it does not have plans for further divestments at this time. Overall, Nampak remains optimistic about its ability to weather the current economic challenges and emerge stronger in the future.