Astrapak Limited is listed on the Johannesburg Stock Exchange (JSE) as a small-cap, specialised manufacturer and distributor of a variety of flexible and rigid plastic packaging products. The company mainly services the food, beverage, homecare, personal care, pharmaceutical, industrial, agricultural and retail markets, and has a market cap of R 574 million.

55% of revenue is generated from continuing operations at nine manufacturing facilities in the Gauteng, Kwazulu-Natal, Eastern Cape and Western Cape regions of South Africa, with discontinued and held for sale operations contributing 45%.

Astrapak’s business portfolio was recently split into three divisions. Astramoulding is the biggest of these three division, and is an innovative leader in the design, development, technology and manufacturing of moulded, formed and flexible packagaing.

Astraforming provides the market with thermo formed and moulded packaging that enhances customers’ shelf presence. The division develops bespoke packaging tubs for some of South Africa’s top dairy brands.

Meanwhile, Astraflexible serves the household, retail and agriculture sectors with polyolefin film for bags, tubing, shrink, stretch, sheet and barrier applications.

Astrapak focuses on innovation-inspired growth, and is structured for sustainability through a balance of organic and project-based growth.

The last few years have been a difficult period for the company, which has had to deal with a tough external operating environment and restructuring. The company has had to cut its operations by half, discard non-core businesses and eliminate expenses to facilitate recovery. Operations are now streamlined to focus on moulding and forming plastic packaging technologies, with all other businesses being exited. The value made from realising the sale of non-core businesses will play an important role in sustaining the company. Astrapak’s exit from the PET industry realised financial gains of R 176.6 million.

In future, Astrapak is targeting returns on sales, assets and capital bench marked to international packaging peers. This will particularly focus on the fields of injection moulding, injection blow moulding and thermoforming.

The group also plans to move a large portion of its asset base to existing facilities in KZN, to increase the capacity, scale and expertise of those operations, while reducing a need for significant reinvestment. The group is focusing on targeting fewer but larger customers.

Astrapak shares have been steadily declining since 2012, largely due to fierce trade competition.

Following the costs incurred by restructuring, Astrapak share prices are making a slow recovery today, and the company recently reported a return to profitability.

With the overhaul of operational structures and the reinvestment into servicing major customers (particularly those in personal care lines) the company believes that it is ready to drive performance back towards targeted returns.

Astrapak shareholders are still making losses on their shares at present, whilst dividends have been suspended until the reworked businesses are delivering healthy cash flows.

In a highly competitive market, it is unlikely that Astrapak shares will yield big returns for investors who purchase them at present.

Materials

We have made it simple to buy JSE listed firm shares online. The easiest way to buy Astrapak Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Astrapak Holdings and assist you with the setup and management of your stock portfolio account.

1. Start by Filling in the BUY THIS SHARE form.
2. Insert your name, email, telephone number and monthly remuneration.
3. Then, Indicate the amount you are looking to invest in Astrapak.
4. Click the “ INVEST NOW” button
5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)

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