Mondi delivers solid first-half performance amid challenging market conditions

UK – Mondi Group, the global leader in sustainable packaging and paper, has reported a steady performance for the first half of 2025, posting an underlying EBITDA of €564 million (US$654.79m), almost unchanged from the €565 million (US$655.95m) achieved in the same period last year.

According to the company, revenue rose 5% to €3.91 billion (US$4.54bn), supported by higher average selling prices and strong showings from its packaging businesses.

Corrugated Packaging recorded a standout 42% increase in underlying EBITDA to €203 million (US$235.68m), driven by higher volumes and prices.

Flexible Packaging rose 9% to €302 million (US$350.61m), benefiting from price increases and cost control, while Uncoated Fine Paper saw a drop to €81 million due to weaker market prices and a lower forestry fair value gain.

Chief Executive Officer Andrew King said the results reflected “volume growth, price increases and good cost control” which offset currency headwinds and inflationary pressures.

He added that the integration of the recently acquired Schumacher Packaging assets was on track, with synergy delivery progressing as planned.

Cash generated from operations rose to €416 million (US$482.96m) from €372 million (US$431.88m) in H1 2024, while leverage increased to 2.5 times underlying EBITDA following significant investments, including the Schumacher acquisition.

The Board declared an interim dividend of 23.33 euro cents per share, unchanged from last year.

The Group has completed major capacity expansion projects, including new paper machines in the Czech Republic and Italy, and is ramping up output.

Notable investments include biomass power plant projects at mills in Slovakia and South Africa to improve energy self-sufficiency and reduce costs and emissions.

In Corrugated Packaging, recent upgrades in Poland and Italy boosted capacity, while demand for sustainable eCommerce solutions continued to grow.

Flexible Packaging maintained margins despite modestly lower volumes, with gains in paper bag demand for building materials and eCommerce.

Uncoated Fine Paper held market share but faced lower selling prices for paper and pulp.

Looking ahead, King warned that geopolitical and macroeconomic uncertainties would continue to weigh on the second half, but emphasized that Mondi remains focused on productivity, cost efficiency, and cash flow optimization, positioning itself for “long-term value creation in structurally growing markets.”

The Schumacher acquisition, completed in March for €506 million (US$587.45m), adds significant corrugated packaging capacity in Northern Europe and is expected to contribute around €30 million (US$34.83m) in underlying EBITDA in 2025, with €22 million (US$25.54m) in annual cost synergies targeted within three years.

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