Mondi reports drop in revenue for FY23, Cascades sales rises by 4% in FY23

UK – Mondi, a market leader in sustainable packaging and paper, has reported a revenue of €7.33 billion (US$7.93bn) for the financial year 2023 (FY 2023), down by nearly 18% compared to €8.90 billion (US$9.64bn) in FY 2022.

For the reported year ended on 31 December 2023, the company’s basic underlying earnings per share totaled €107.8 (US$116.82) for FY 2023, a decrease from €195.6 (US$211.96) in FY 2022, indicating lower profitability despite reduced net finance costs.

The company’s profit before tax also saw a significant decrease, dropping to €682 million (US$739.05m) in 2023 from €1.56 billion (US$1.69bn) in 2022. 

Return on capital employed was 12.8%, compared to 23.7% in 2022. Operating profit for FY 2023 declined to €763 million (US$826.82m) from €1.68 billion (US$1.82bn) reported last year. 

Earnings before interest, taxes, depreciation, and amortization (EBITDA) for FY 2023 came in at €1.17 billion (US$1.27bn) versus €2.09 billion (US$2.26bn) in FY 2022.

Underlying EBITDA declined to €1.20 billion (US$1.30bn) compared to €1.84 billion (US$1.99bn) in the previous year. Consequently, the underlying EBITDA margin also fell to 16.4%, from 20.8% in 2022.

Despite the downturn in profitability, Mondi’s cash generation remained positive, with operations generating €1.31 billion (US$1.42bn), slightly up from €1.29 billion (US$1.40bn) in the previous year. 

Segment-wise, Mondi’s Corrugated division saw a 24% decline in revenue to €2.28 billion (US$2.47bn) in FY 2023 from €2.99 billion (US$3.24bn) in FY 2022.

Its Flexible Packaging segment saw a 10% decrease in revenue to €3.87 billion (US$4.19bn) from €4.29 billion (US$4.65bn) last year while the Uncoated Fine Paper segment’s revenue declined by 20% to €1.29 billion (US$1.40bn) as against €1.61 billion (US$1.74bn) in FY 2022.

Mondi Group CEO Andrew King said: “Mondi delivered a resilient performance in 2023 as a result of our compelling customer service and delivery, supported by our scale, quality asset base, integrated model and breadth of products, customers and end-markets.”

Cascades sale sour 4% in FY23

Meanwhile, Canadian packaging company Cascades has reported a 4% increase in sales, totaling C$4.63 billion (US$3.43bn) in the financial year 2023 (FY 2023), up from C$4.46 billion (US$3.31bn) in FY 2022.

It also posted a net loss of C$76 million (US$56.35m) for 2023, marking a significant increase of 123.5% from the C$34 million (US$25.21m) loss reported in 2022. 

The company’s net loss per common share was C$0.76 in 2023 compared to C$0.34 in 2022.

Cascades’ operating income saw a modest rise to C$40 million (US$29.66m), compared with C$33 million (US$24.47m) in the prior year. 

Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) surged to C$558 million (US$413.75m) in FY 2023, from C$376 million (US$278.80m) in FY 2022. 

The company’s net debt decreased to C$1.88 billion (US$1.39bn) as of 31 December 2023, compared with C$1.96 billion (US$1.45bn) at the end of 2022. 

In the fourth quarter (Q4) ending 31 December 2023, Cascades reported a net loss of C$57 million (US$42.26m), compared with a C$27 million (US$20.02m) loss in the same period of the previous year. 

Net loss per common share for the quarter was C$0.57, and its operating loss was C$24 million (US$17.80m), slightly higher than the C$20 million (US$14.83m) operating loss in Q4 2022.

Cascades’ sales remained relatively stable at C$1.13 billion (US$837.87m) in Q4 FY23, and its adjusted EBITDA increased to C$122 million (US$90.46m) during the quarter from C$116 million (US$86.01m) in Q4 FY 2022.

Cascades president and CEO Mario Plourde said: “We are pleased with our strong annual performance in 2023, with our operations generating a 4% increase in sales and a 48% increase in EBITDA levels compared to the prior year. 

“Our Tissue Papers segment drove these stronger results, generating C$182 million of EBITDA in 2023, a significant improvement from last year that reflects the hard work done over the past two years.”

The company forecasts its results to decrease significantly in Q1 2024, driven by lower-than-expected results in its Containerboard segment.

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