The supplier looks to be regaining the value it lost late last year after currency challenges caused it to issue a profit warning. Stock value fell by almost 7% in the aftermath with many investors losing confidence in the sector.
Forecasters predict dividend increase
The half year financial report issued on 3rd August 2018 indicated exceptional growth and development with basic earnings up 26 per cent and profits up by 6 per cent. City forecasters have also predicted bottom line dividend increases of 15 per cent in 2018 and 6 per cent in 2019. With a P/E ratio of 13.9 times, it seems implausibly cheap considering the potential, a fact which has not been missed by today’s investors.
Mondi’s Chief Executive Peter Oswald has previously stated that the company has continued to make good progress in “securing future growth and ensuring the ongoing cost competitiveness through the delivery of its major capital expenditure programme” as reported in Web Financial Group.
Upgrades ensure future growth
The success of the company’s turnaround has led to it scheduling major upgrades (including a €335 million modernisation on its plant in Steti), for many of its paper plants later this year, as well as securing major takeover deals. As Mondi has also reported an additional 800 million euros for the remainder of this year and 2019, the firm’s standing on the Footsie looks set to continue.