In his statement to the annual general meeting of South African glass packaging manufacturer Consol, held on 18 October 2005, Chairman Royden Vice said that trading conditions for the 1Q 2005 remained…
In his statement to the annual general meeting of South African glass packaging manufacturer Consol, held on 18 October 2005, Chairman Royden Vice said that trading conditions for the 1Q 2005 remained positive resulting in volume growth of 17.7% compared to the same period in the prior year. He cautioned, however, that relatively high growth must be viewed against weak volumes in July and August 2004 and some earlier glass off-take in 2004, ahead of the traditional peak season. Revenue in the 1Q 2005 grew by 14%, which was lower than the volume growth because of sales mix variances in glass and lower plastic selling prices. Notwithstanding the slightly lower revenue growth, operating profit margin in the 1Q 2005 was maintained in line with the prior year. Vice said that although it was not Consol“s practice to forecast volumes, the company believed that, given the high level of 1Q 2005 growth, it was prudent to give guidance to shareholders for the 1H of the financial year, and current indications were that the volume growth for the period would be about 10%. “As a consequence and assuming that the economic outlook for South Africa remains favourable the prospects for the business remain positive”, the chairman concluded.