Mondi FY profit up 10% on packaging paper sales

by Reuters 0

This was a result of rising packaging paper sales and lower costs, sending its shares to a record high. 

[DATA MND:Mondi] , which has a secondary listing in London, said underlying operating profit for the year to the end of December reached 767 million euros (868.93 million dollars) from 699 million euros a year earlier.

(READ MORE: Mondi expects operating profit above €367 million)

Its shares rose 2 per cent to 232.50 rand, reaching its highest level ever since the company listed in 2007.

Mondi said packaging paper, including kraft paper – a type of paper often used in packaging – rose 11 per cent due to lower costs and volume growth from an acquisition.

(READ MORE: Mondi acquires Graphic Packaging’s kraft business)

Mondi bought Graphic Packaging International, a subsidiary of Graphic Packaging Holding, in June to increase its sales of magazine paper and newsprint and grow its presence in the world’s largest economy.

The company declared a final dividend of 28.77 euro cents per share, bringing the total for the year to 42 cents which was an increase of 17 per cent on the year prior.