Half-year results for the six months ended 30 June 2020
Highlights
• Robust financial performance in a challenging environment
◦ Underlying EBITDA of €738 million with margin of 21.4%
◦ Profit before tax of €466 million
◦ Basic underlying earnings of 73.0 euro cents per share
◦ Cash generated from operations of €602 million
◦ Return on capital employed of 17.1%
◦ Strong balance sheet with 1.4 times net debt to 12-month trailing underlying EBITDA at 30 June 2020
• Decisive and effective COVID-19 response
◦ Priority to protect our people, serve our customers and support our communities and partners
◦ Tight cost control
◦ Postponed planned maintenance shuts to second half
◦ Reduced 2020 capital investments, while maintaining our programme to deliver growth through the cycle
◦ Further strengthened liquidity, including issuing a €750 million 8-year Eurobond
• Resuming dividend payments in line with policy
◦ 29.75 euro cents per share dividend relating to 2019 financial year declared
◦ 19.00 euro cents per share 2020 interim ordinary dividend declared
• Well positioned for recovery with resilient business model, cost-advantaged asset base, strong balance sheet and unique portfolio of sustainable packaging solutions
Andrew King, Mondi Group Chief Executive Officer, said: “Mondi delivered a robust performance in the first half of 2020, with underlying EBITDA of €738 million. This reflects the resilience of our business model, achieved despite starting the year with significantly lower average selling prices across our key pulp and paper grades and the challenges brought by COVID-19.
We took decisive action in the early stages of the pandemic, moving quickly to safeguard our people, support our communities and protect the profitability, liquidity and cash flow of the business while seeking to ensure we are well placed to benefit when the recovery comes.
Sustainable packaging continues to be a long-term priority for our customers and wider society. As a leading producer of both paper and flexible plastic-based packaging, we are in a unique position to support our customers’ environmental goals with packaging that is sustainable by design adhering to our principle of paper where possible, plastic when useful.
more detail at: https://www.mondigroup.com/media/12314/mondi-group-half-year-results-announcement-2020_final.pdf