Nampak rolls out executive change amid a turnaround plan. File photo
Nampak, the biggest packaging group in Africa that is implementing a turnaround place, said yesterday non-executive director Phildon Roux had been appointed as interim CEO, a move that analysts described as promising.
Nampak said yesterday in a statement that its Erik Smuts had resigned from its board and as CEO with immediate effect.
The group said that the role of CEO had changed given the substantial restructuring process, including both the imminent disposal of non-core assets and divestitures from unprofitable operations, and Smuts had opted to step down.
Phildon Roux, currently an independent non-executive director, member of the nominations and remuneration committee and chairman of the restructuring committee, had been appointed as interim CEO from yesterday, until such time as a permanent appointment was made.
Roux’s membership on the nominations and remuneration committee would terminate due to his new role.
Opportune Investments chief investment officer Chris Logan said Roux’s appointment was “excellent news” from a shareholder perspective.
“Roux, together with three recent board appointments, bodes well for the turnaround. Roux has done a good job so far on the restructuring process and is a capable director,” he said.
Logan said the turnaround plan was “late in the game” and the group couldn’t have picked a tougher time to restructure given the difficult markets in Nigeria, South Africa and Zimbabwe.
He said there remained big challenges for the group to overcome, but Roux had the skills and knowledge to deal with them and he would not be surprised if Roux’s period of interim CEO was extended.
Smalltalkdaily Research (@small talkdaily) commented on Twitter: “Utterly expected here! When I saw Phil Roux (Phil the Knife) appointed as non-exec by the shareholder cabal onto Nampak board it was only a matter of time until he was made CEO. His reputation for cost cutting is fearsome & inside waste & over-expenditure is rampant”
Nampak’s board said they were confident Roux would leverage his extensive operational and strategic experience in the FMCG (fast moving consumer goods) sector, as well as his skills in organisational turnarounds, to complete the restructuring plan, and accumulate value for Nampak’s shareholders.
A process had been initiated to appoint a permanent CEO.
Tjaart Kruger, an independent non- executive director, had been appointed as a member of the Nominations and Remuneration Committee.
The board thanked Smuts for his service of more than 25 years to Nampak and for leading the company through the Covid-19 pandemic and for laying a strong foundation for delivery of the turnaround initiatives.
Nampak’s share price fell 1.06% to 93 cents by midday yesterday, furthering a decline in line with the groups financial position, from as much as R17 per share five years ago.
In the five months to February 28 Nampak grew revenue 5% relative to the first five months of the previous year, primarily due to a 9% increase in Metals, partially offset by declines of 6% in Plastic and Paper. Pleasing revenue growth was reported in Bevcan Angola, while revenue in Bevcan South Africa grew 6%. Revenue in Bevcan Nigeria increased despite a reduction in volumes due to the recovery of higher foreign currency related costs from customers. DivFood saw a marginal revenue decline.
Higher debt and increased interest rates had contributed to a small taxed loss for the five months.
BUSINESS REPORT