Mpact released a trading statement on 23 May 2016. The company’s shareholders were advised that its basic earnings per share (EPS) and headline earnings per share (HEPS) for the six months ending 30 June 2016 are expected to be at least 20 percent lower than the EPS and HEPS for the six months ended 30 June 2015.
The expected decline in profitability is attributable to lower sales of containerboard, higher finance costs, a slower-than-anticipated ramp-up of Mpact Polymers and a higher effective tax rate. The lower sales of containerboard are a consequence of certain Mpact customers acquiring their own paper mills, as previously reported.
There is currently insufficient certainty to enable the company to provide specific guidance on the expected EPS and HEPS, and an expected EPS and HEPS range for the period cannot be estimated at this stage. It is anticipated that Mpact will publish a further trading statement on the Stock Exchange News Service on or about 29 July 2016, closer to the release of its interim financial results.
Shareholders are advised that the financial information on which this trading statement is based has not been reviewed and reported on by the company’s external auditors.