Mondi (MNDI.L) the packaging group today announced a slight rise in first half earnings of 3% as part of a “steady improvement in all financial metrics”.
Highlights of the first half report include, underlying operating profit up 3%, underlying earnings per share up 5%, cash generated by 2%.
Despite lower prices across their range the company said they had been able to return these results due to strict cost management. The company also announced a 39% rise in interim dividend.
David Hathorn, Mondi Group chief executive, said:
“The Mondi Group continues to deliver a strong performance, generating a return on capital employed of 16%. Strong cost management and contributions from successfully completed strategic capital investments, together with the benefits from downstream integration in key packaging segments,enabled the Group to offset the impact of lower prices in a number of paper grades.
We have continued to invest in the business for future growth. Highlights for the period included the successful commissioning of the 155,000 tonne bleached kraft paper machine at the Steti mill in the Czech Republic and the acquisition of Graphic Packaging’s bags operations and kraft paper mill in the United States. Together with the Group’s ongoing capital expenditure programme, including significant projects at our Ruzomberok, Swiecie and Syktyvkar operations, we are confident that these investments will deliver strongly into the future.
In the near term, anticipated price increases in some of our packaging paper grades should provide positive momentum. As in prior years, the second half of the year will be impacted by the planned annual mill maintenance shuts.
Market fundamentals remain sound, which, coupled with a continued economic recovery, should prove positive for further growth in the packaging businesses.
Overall, we remain confident that Mondi will continue to deliver an industry leading performance.”
Mondi (MNDI.L) the packaging group today announced a slight rise in first half earnings of 3% as part of a “steady improvement in all financial metrics”.
Highlights of the first half report include, underlying operating profit up 3%, underlying earnings per share up 5%, cash generated by 2%.
Despite lower prices across their range the company said they had been able to return these results due to strict cost management. The company also announced a 39% rise in interim dividend.
David Hathorn, Mondi Group chief executive, said:
“The Mondi Group continues to deliver a strong performance, generating a return on capital employed of 16%. Strong cost management and contributions from successfully completed strategic capital investments, together with the benefits from downstream integration in key packaging segments,enabled the
Group to offset the impact of lower prices in a number of paper grades.
We have continued to invest in the business for future growth. Highlights for the period included the successful commissioning of the 155,000 tonne bleached kraft paper machine at the Steti mill in the Czech Republic and the acquisition of Graphic Packaging’s bags operations and kraft paper mill in the United States. Together with the Group’s ongoing capital expenditure programme, including significant projects at our Ruzomberok, Swiecie and Syktyvkar
operations, we are confident that these investments will deliver strongly into the future.
In the near term, anticipated price increases in some of our packaging paper grades should provide positive momentum. As in prior years, the second half of the year will be impacted by the planned annual mill maintenance shuts.
Market fundamentals remain sound, which, coupled with a continued economic recovery, should prove positive for further growth in the packaging businesses.
Overall, we remain confident that Mondi will continue to deliver an industry leading performance.”
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