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Nampak, Africa’s leading packaging manufacturer, has reported that its headline earnings per share (HEPS) fell by 48 per cent during the 2016 full year ended September 30, due mainly to foreign exchange losses arising from the company’s operations in Nigeria and Angola.

The Johannesburg-based company said HEPS – which is the main profit measure in South Africa – fell to 107.6 cents in 2016 compared with 208.2 cents posted in a similar period of last year, according to a statement released on Monday.

“The unavailability of US dollars, made the timing and quantum of conversion from local currencies to US dollars uncertain and sporadic,” said Andre De Ruyter, Nampak’s CEO. “During the year, the Angolan kwanza depreciated by 23% and the Nigerian naira by 58% against the US dollar. As a result, the translation of the restricted cash to rand at the ruling official exchange rate resulted in the group incurring 681 million rand in foreign exchange losses.”

Notwithstanding the decline in profit, Nampak said group revenue rose 11 per cent to 19.14 billion rand. The growth was driven by strong sales from its can manufacturing business in Nigeria as well as a turnaround in its glass business, which delivered a trading profit of 105 million rand compared with a trading loss of 81 million rand.

Nampak said despite the continued volatility and uncertainty in its key growth markets of Nigeria, Angola, and Ethiopia, the company remains optimistic about the long term outlook and will continue to strengthen its position.

“The focus of all divisions in the short term is on achieving greater plant efficiencies making bottles and cans profitably and maximising cash generation, while leveraging the latest-generation factory machinery as well as good partnerships,” De Ruyter said. “Nampak will continue adjusting to the changing trading environment, while building for the future. The organisation has undergone significant restructuring and is now optimised, with most plants operating efficiently and at world class benchmark rates.”

Founded in 1968, Nampak is a leading manufacturer of packaging in various forms including metal, glass, paper, and plastics. The company has operations in 11 African countries as well as the United Kingdom and the Republic of Ireland. In Nigeria, Nampak is the major supplier of metal beverage packaging used for alcoholic beverages, carbonated soft drinks, fruit juices, energy drinks, vegetable juices and iced teas.