JSE-listed Mpact has reported that, despite a weak macroeconomic backdrop, only partly mitigated by lower inflation and interest rates compared with the same period last year, Mpact’s paper converting and plastics businesses delivered volume and profitability growth for the six months ended June 30.
In a trading statement, Mpact says this reflected progress on strategic development projects focused on growth sectors, supported by investments in innovative, higher-margin and sustainable products.
These gains were, however, more than offset by lower paper mill margins, primarily owing to reduced containerboard and cartonboard selling prices.
The company explains that trading conditions deteriorated materially during the second quarter as the war in the Middle East contributed to higher input costs, softer demand and lower business confidence.
The agricultural sector was also negatively affected by severe adverse weather conditions, including hail and flooding in parts of the Eastern and Western Cape during the period.
