Highlights
• Strong financial performance, good momentum ◦ Higher sales volumes, higher average selling prices and effective cost control ◦ Underlying EBITDA of €709 million, with margin of 19.5% ◦ Cash generated from operations of €552 million ◦ Balance sheet at 1.5x net debt to underlying EBITDA
• Investing through-the-cycle ◦ Completed acquisition of Olmuksan, strengthening our position in the fast growing Turkish corrugated market (€88 million on an implied 100% EV basis) ◦ Good progress on capital investment projects, delivering growth, sustainability benefits and enhanced cost competitiveness (€286 million capital investments in the period) ◦ Approved €125 million upgrade and expansion of Kuopio containerboard mill (Finland) and further investment in corrugated plants to support strong growth in eCommerce
• Launched Mondi Action Plan 2030 (MAP2030), our sustainability framework for the next decade
• Signed €750 million revolving credit facility aligning financing with MAP2030 and extending debt maturity profile
• Interim dividend declared of 20.0 euro cents per share
• Well-positioned for growth in packaging markets, with cost-advantaged asset base, strong financial position and unique portfolio of sustainable solutions
Andrew King, Mondi Group Chief Executive Officer, said:
“We are pleased with our first half performance. Volume growth and pricing momentum in our packaging markets has been strong. Encouragingly, we have also seen improving uncoated fine paper markets. We exhibited strong cost control, against a backdrop of rising commodity input costs, whilst keeping a sharp focus on delivering our high-quality product and service offering to our customers. My thanks go to the teams across Mondi for their ongoing commitment and dedication.
Sustainable packaging is at the centre of what we do and top of our customers’ agendas. With our leading offering in paper and flexible plastic-based packaging, I am confident we are well-positioned to support their goals with innovative solutions that are sustainable by design, based on our principle of paper where possible, plastic when useful.
We remained focused on driving organic growth through our capital investment programme. We successfully started up a new 300,000 tonne containerboard line at Ružomberok (Slovakia) and a repurposed machine in Štĕtí (Czech Republic) which is now dedicated to producing speciality kraft paper for eCommerce and retail shopping bags. Expansionary projects are also underway at a number of our converting packaging operations, enhancing our production capabilities and product offering to further support our customers, particularly in eCommerce. We also approved an expansion and upgrade of our semi-chemical fluting mill in Kuopio (Finland). We are excited by the possibilities offered by our costadvantaged asset base and we continue to evaluate further development opportunities in our structurally growing packaging markets.
We completed the acquisition of Olmuksan, expanding our corrugated offering in the fast growing Turkish market, and welcome the team to the Mondi family.
While macroeconomic uncertainties remain, trading is positive. In the second half, we expect to see the full impact of the price increases implemented to date and the continued contribution from our capital investment projects. We also expect the impact of planned maintenance shuts and ongoing input cost pressures, which we aim to mitigate by our relentless focus on cost control.
Underpinned by the Group’s integrated cost-advantaged asset base, culture of continuous improvement, portfolio of sustainable packaging solutions and the strategic flexibility offered by our strong cash generation and financial position, the Group remains well-placed to deliver sustainably into the future.”
details at: https://www.mondigroup.com/media/14049/hy-announcement-final.pdf