Mondi reports record financial performance

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Mondi reports record financial performance

The international packaging and paper company saw group revenue increase from 5.7 billion euros for the year ended 31 December 2012 to 6.4 billion euros for the same period in 2013.

“I am pleased to report a record financial performance, driven by our low cost position, exposure to higher growth markets and ongoing focus on operational excellence. While growth in demand for the group’s key products has remained generally subdued, supply-side constraint has been supportive of pricing,” said Mondi group chief executive, David Hathorn.

“It is particularly pleasing to see how well the integration of the businesses acquired in late 2012 has gone, with synergies delivered in line with target. Despite a difficult trading environment, the new business segment of consumer packaging has demonstrated its resilience. With order books strengthening in the new year and the structural growth dynamics still very much in place, we remain confident in the future development of this business.”

[DATA MND:Mondi Limited] also reported that underlying operating profit rose 22 per cent from 574 million euros in 2012 to 699 million euros in 2013 and operating profit increased by 11 per cent from 547 million euros to 605 million euros.

Profit before tax was up 36 per cent from 368 million euros to 499 million euros in 2013, cash generated from operations increased by 22 per cent to one billion euros and basic earnings per share increased by 59 per cent from 50.1 euro cents to 79.8 euro cents.

“Recent exchange rate volatility in several of the emerging markets in which we operate does create its challenges. However, the group’s positioning as a net exporter from most of these markets typically allows us to benefit from the devaluation of these currencies relative to the euro,” Hathorn said.

“We are confident that the ongoing capital investment programme will contribute meaningfully to our performance going forward. Our proven ability to generate strong cash flow through the cycle provides valuable optionality. As such, we remain confident in the Group’s ability to continue delivering industry-leading performance.”