Mpact reported unaudited consolidated earnings results for the six months ended June 30, 2016. The Group increased revenue by 6.2% to ZAR 4.7 billion, with acquisitions contributing 1.7% to this growth. Underlying operating profit decreased 6.0% to ZAR 321.7 million, due to lower containerboard sales as well as a loss in Mpact Polymers, offset partially by an improved trading performance in the rest of the Paper and Plastics business. Higher net finance costs and a higher effective tax rate compared to the same period last year, resulted in basic and underlying earnings per share decreasing 29.6% to 95.2 cents against 135.3 cents June 2015 and headline earnings per share for the period declining 29.4% to 94.9 cents against 134.4 cents in June 2015. Profit before tax was ZAR 236.7 million against ZAR 289.5 million a year ago. Profit for the period was ZAR 155.2 million against ZAR 228.4 million a year ago. Net cash inflows from operating activities was ZAR 360.3 million against ZAR 264.9 million a year ago. Investment in property, plant and equipment was ZAR 444.8 million against ZAR 512.1 million a year ago.

The group's earnings are expected to continue to be impacted during the second half by a higher effective tax rate and higher finance costs compared to the same prior year period.