Mondi achieves US$620.79M underlying EBITDA in first half of FY24

UK – Mondi, a leading packaging and paper group, has reported a robust performance with underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) of €565 million (US$611.54 million) for the first half (H1) of the financial year 2024 (FY24).

The company noted that this performance was in line with its expectations.

Despite improvements in sales volumes and reduced input costs, Mondi’s underlying EBITDA margin of 15.1% was lower than last year.

This decrease was attributed to lower average selling prices and increased personnel and operating costs due to inflation.

Mondi Group CEO Andrew King stated, “Our underlying EBITDA of €565 million in the first six months, although lower than the comparable period last year, reflected an encouraging performance, supported by improving market conditions resulting in stronger order books and higher sales volumes.

“This enabled us to implement a number of price increases across our paper grades. Alongside lower input costs, we delivered a sequential improvement in underlying EBITDA when compared to the second half of 2023.”

The company’s revenue for H1 FY24 decreased to €3.73 billion (US$4.10 billion) from €3.88 billion (US$4.26 billion) in the same period the previous year.

Basic earnings per share fell to 44.5¢, a significant drop from 63.7¢ in H1 FY23. Profit before tax in H1 FY24 stood at €296 million (US$325.23 million), down from €418 million (US$459.27 million) in the corresponding period of FY23.

King added, “The second half is expected to be impacted by higher planned maintenance shuts and a likely forestry fair value loss.”

In recent developments, Mondi partnered with CMC Packaging Automation to pioneer sustainable e-commerce packaging solutions.

Mondi has been designated as the preferred kraft paper partner for CMC machines, marking a significant step toward producing the most sustainable and efficient paper products tailored for CMC’s state-of-the-art packaging systems.

This collaboration aims to leverage the unique strengths of both companies to create innovative packaging solutions that deliver enhanced product quality and improved sustainability for customers.

The partnership is dedicated to meeting the growing demand for sustainable e-commerce paper and packaging solutions, combining CMC’s cutting-edge packaging on-demand technology with Mondi’s expertise in sustainable kraft paper products to disrupt the market with innovative packaging alternatives.

Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE