Mpact, a South African packaging and recycling company, has forecast a surge in its interim earnings of almost 40%.
- The increase is due to an improved performance in its plastics division and higher selling prices in its paper division.
- Mpact’s net debt has increased by R313m to R2.6bn after investing R843m in capital projects.
- Mpact’s share price rose 3.5% on the news of the earnings forecast.
- The packaging industry has been benefiting from an increase in online shopping and demand for e-commerce packaging.
- Mpact expects demand for its paper-based packaging to continue to grow due to consumers’ preference for environmentally friendly packaging.
- Mpact has been investing in renewable energy and water-saving technologies to reduce its environmental impact.
- Mpact’s CEO, Bruce Strong, said the company is well-positioned to benefit from the circular economy and the transition to a low-carbon economy.