Mondi share price: Group releases full-year results
Mondi Plc (LON:MNDI) today released its financial report for the year ended December 31. Highlights from the report provided below, with more to follow:
**Excellent financial performance:** Underlying operating profit of €767 million, up 10%; Underlying earnings of 107.3 euro cents per share, up 13%; Strong contribution from all business units.
**Capital projects delivering meaningful contribution:** Completed investments delivering to plan; Strong capital investment pipeline.
**Good progress in integrating acquisitions:** Bags and kraft paper acquisition in US, extending global leadership; Consumer Packaging acquisition in Poland increases capacity in low cost.
Recommended full year dividend of 42.0 euro cents per share, up 17%.
**David Hathorn, Mondi Group chief executive, said:** “I am pleased to report another successful year for Mondi. Underlying earnings per share increased by 13% to 107.3 euro cents per share and our return on capital employed was 17.2%, with a strong contribution from all business units.
During the year, we made good progress in growing the business. We completed a number of key capital projects, including the 155,000 tonne per annum bleached kraft paper machine in the Czech Republic, the recovery boiler in Slovakia and the 100,000 tonne per annum softwood pulp dryer in Russia. Over the past 18 months, we have approved further major projects amounting to a total capital commitment of around €420 million, thereby ensuring a strong pipeline for future growth. We extended our global leadership position in industrial bags with the acquisition of Graphic Packaging’s bags business in the US, while in Consumer Packaging, we acquired a modern converting plant in Poland.
The Boards have recommended a final dividend of 28.77 euro cents per share, bringing the total dividend for the year to 42.0 euro cents per share, an increase of 17%.
Economic growth is expected to remain below historical averages in the regions in which we operate. We expect this slow economic growth to continue to impact on demand for our products in the short term, although underlying industry fundamentals remain generally sound, with supply/demand balance supported by supply-side constraint.
Recent exchange rate movements provide a mixed impact, although with a clearly positive bias when considered for the Group as a whole. Furthermore, the recently completed capital investments and ongoing projects should contribute meaningfully to our performance going forward. As such, we are confident of making further progress in the year ahead.”
As of 07:41 GMT, Tuesday, 24 February, Mondi Plc share price is 1,277.00p.