Mondi, the global packaging and paper group with mills and plantations in South Africa, started up five major expansion projects in the year to December 31, 2025, and paid a stable dividend.
Underlying earnings before interest, tax, depreciation, and amortisation (Ebitda) came to €1.05 billion, including €7 million forestry fair value gain (€1.2bn including €128m forestry fair value gain).
The group said the five projects, all delivered on time and within budget, included the new paper machine at Steti (Czech Republic), which commenced operations ahead of plan in December 2024.
“Our focus now turns to executing our operational and commercial strategy and leveraging our expanded product offering,” said group CEO Andrew King in a statement.
“As we move into 2025, while significant macroeconomic and geopolitical uncertainties remain, we are seeing improving order books across our packaging businesses and are implementing price increases across our range of packaging paper grades,” he said.
The acquisition of Hinton pulp mill (Canada) was concluded, and the acquisition of Schumacher's Western Europe Packaging Assets was on track for completion in the first half of the new financial year.
Shareholder returns included the €1.60 a share special dividend paid last February, which represented the return of proceeds from the sale of the Russian assets.
A final dividend of 70 euro cents per share – in line with 2023 - was declared.
Group revenue increased to €7.41bn. Pre-tax profit fell 45% to €378m. Basic underlying earnings per share fell 23% to 82.7 euro cents a share.
The directors said in the results that disciplined capital allocation remained a strategic priority and, alongside investment in organic growth opportunities.
The acquisition of the Western Europe Packaging Assets of Schumacher Packaging would expand the group’s geographic reach and deliver integration benefits in the group’s Corrugated Packaging business.
King said while significant macroeconomic and geopolitical uncertainties remained, order books were improving across the packaging businesses, and price increases were implemented.
“The demand for sustainable products is providing many opportunities for Mondi and is a key driver of our growth. Our investments over the last few years, enhancing our unique packaging and paper platform and product offering for our customers, will support this growth,” said King.
The Corrugated Packaging division reported a stronger second half. Volumes and average selling prices were broadly in line with 2023. Paper price increases achieved resulted in a stronger second half. Containerboard price increases were being implemented. Underlying Ebitda improved to €328m from €310m.
In the Flexible Packaging division, a focus on sustainable solutions drove volume growth and underlying Ebitda came to €558m (€637m). Kraft Paper sales volumes rose, but average prices fell. In Paper Bags, sales volumes were up 3%. There was a resilient performance in Consumer Flexibles, Functional Paper, and Films.
The capacity expansion projects and Hinton acquisition were completed, broadening the customer offering.
In the Uncoated Fine Paper segment, there were market share gains and underlying Ebitda increased to €191m from €161m. The division saw higher sales volumes, lower input costs, and lower average selling prices. The focus remained on cost optimisation and market share gains as supplier of choice.
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