Star 2021-08-06

Mpact to invest R500m in new factories and more solar capacity Edward West edward.west@inl.co.za MPACT, the largest paper and plastics packaging business and recycler in southern Africa, traded resiliently in the six months to June 30 and has set aside R500 million in new investments to build three new factories and increase renewable energy capacity. In the six months to June 30, underlying earnings per share were up sharply to 121 cents from 9c in the same period last year. Headline earnings a share increased by 112.1c to 120.5c. Chief executive Bruce Strong said operating profit increased 165 percent to R337m. Strong cash flow resulted in debt decreasing to R1.47 billion from R1.9bn, despite a R257m share buy-back in January – the buyback represented a substantial…

Siphelele Dludla siphelele.dludla@inl.co.za The MANUFACTURING sector is expected to continue ramping-up its production capacity after showing significant improvement in May from last year’s record plunge during the level 5 lockdown. However, the recent civil unrest that disrupted supply chains in July could hamper the manufacturing capacity and have a prolonged effect on the industry well into 2022. Data from Statistics South Africa (StatsSA) yesterday showed that the utilisation of production capacity by large manufacturers rose to 78.6 percent in May from 59.8 percent a year ago. This was an increase of 18.8 percentage points as all of the manufacturing divisions experienced increases in utilisation of production capacity during the month. The May print was also higher than February’s reading of 76.3 percent as manufacturers used more…

Momentum Investments revises South Africa’s Siphelele Dludla siphelele dludla@inl.co.za Momentum Investments is the latest institution to revise down South Africa’s growth prospects and has factored in the possibility of a fourth wave of Covid-19 into their forecast. The downward revision comes as the economy has been stymied by the impact of level 4 lockdown restrictions and the week-long disruption of supply chains in July, some of which is ongoing. Van Tonder said their forecast factored in the possibility of a fourth wave of Covid-19 later in the year. The National Institute of Communicable Disease predicted recently that the third wave would likely peak in most provinces by mid-August, while other health experts have said a fourth wave was possible as early as October. Momentum Investments yesterday lowered its 2021 gross…

Sappi loses R220m production due to riots in KwaZulu-Natal EDWARD WEST edward.west@inl.co.za Sappi, the wood fibre product group, had suffered a more than R220 million loss of production after having to close paper and pulp mills due to the recent riots in KwaZulu-Natal, chief executive Steve Binnie said yesterday. He said during an interview on the group’s third quarter results to June 2021 that this figure might rise further due to the impact of the cyberattack on Transnet and ongoing Covid-19 related global supply chain issues. The civil unrest in July caused disruptions to raw material supplies and forced the temporary closure of the Saiccor, Tugela and Stanger mills in KwaZulu-Natal. A combined total of 28 000 tons of dissolving pulp (DP) and 7 000 tons of paper…

Accounting body investigating role played by Deloitte auditors EDWARD WEST edward.west@inl.co.za THE SOUTH African Institute of Chartered Accountants (Saica) is conducting an investigation into the Deloitte auditors who worked on the accounts of Steinhoff, Saica chief executive Freeman Nomvalo said. He said in response to questions from Business Report that although Saica did not have jurisdiction over firms, it could investigate and discipline individual Saica members. Steinhoff is dealing with numerous legal claims in South Africa, Germany and the Netherlands after its share price tanked in December 2017 and substantial accounting irregularities were subsequently uncovered. As Steinhoff’s former auditor that signed off its accounts at the time, Deloitte agreed earlier in February to pay up to R1.3 billion in compensation to Steinhoff claimants. Deloitte said the payment did not…

Dineo Faku dineo.faku@inl.co.za ADDRESSING the gender pay gap and environmental social and governance (ESG) issues had to be prioritised in South African boardrooms going forward, the latest remuneration report by PricewaterhouseCoopers (PwC) said yesterday. The PwC’s 13th edition of the “Exe- cutive directors’: Practices and Remuneration Trends” report found that the pay gap was most pronounced in medium-cap companies, with a gender pay gap of 46 percent observed at the median and 51 percent at the upper quartile, with a smaller pay gap observed in small-cap companies with gaps of 27 percent and 30 percent observed respectively at the median and upper quartiles. Andreas Horak, PwC reward practice co-lead and director in PwC’s people and organisation department, told journalists that a more representative workforce, which includes…