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Boost for Mondi as sales and profits increase

[Feb 28, 2023]

Packaging giant Mondi has posted improved revenue and profits for the full year.
Sales rose 28% to €8.9bn while profit before tax was up 119% to €1.9bn. Underlying EBITDA was up 60% to €1.8bn. The results excluded its Russian operations.

The business saw volume growth in containerboard, kraft paper and pulp sales.

Flexible Packaging sales were up 31% at just under €4.3bn, while underlying EBITDA jumped 41% to €797m.

At its Corrugated Packaging division sales were up 27% at €2.99bn while underlying EBITDA increased by 22% to €662m.

The Uncoated Fine Paper operation grew sales by 35% to €1.61bn, with the business making a huge improvement in underlying EBITDA which rose from €55m to €427m.

Mondi said that average benchmark European uncoated fine paper selling prices and average benchmark European bleached hardwood pulp prices “were both up more than 40% year-on-year”.

However, European uncoated fine paper and pulp prices have come under downward pressure in early 2023.

Commenting on the outlook, Mondi pointed to “significant geopolitical and macro-economic uncertainties” in early 2023.

“Whilst a number of input costs are starting to decline, we continue to see an environment of softer demand and pricing, with destocking expected to continue through the first quarter.”

The group said it remained confident, despite the challenging conditions.

Mondi completed its acquisition of Burgo’s Duino mill in Italy in January. It currently makes LWC but Mondi plans to convert it to make 420,000tpa of high-quality recycled containerboard.

Source: mondigroup.com