Mondi reveals strong revenue and profit growth in half year financial results
09 Aug 2022 --- Mondi has reported revenue and profit increases in its Half Year 2022 financial results, celebrating a “strong performance” across the business. The paper and packaging giant recorded underlying EBITDA from continuing operations (excluding Russian operations) of €942 million (US$964.7 million), up 66% year-on-year.
Moreover, the company’s revenue increased by 37% to €4.5 billion (US$4.6 billion) and profit before tax grew to €933 million (US$954.1 million) from €566 million (US$578.8 million) in the same period last year.
CEO Andrew King attributes the Group’s strong performance to its vertical integration, organizational agility and strong customer collaborations, ensuring timely deliveries amid disrupted global supply chains.
“We achieved strong price realization while maintaining tight cost control against a backdrop of strong inflationary pressures,” he says.
“Our capital investments continue to generate value-accretive growth, enhance our cost competitiveness and drive [environmental] sustainability benefits. We have an ambitious expansionary capital investment program to further capture growth in our packaging markets, building on our leading market positions and long track record of disciplined capital allocation.”
Mondi’s profit before tax grew to €933 million from €566 million in the same period last year.
Mondi has around €1 billion (US1.02 billion) of expansionary projects underway, approved or under advanced evaluation, capturing growth in packaging markets, building on leading market positions and adding to its strong track record of disciplined capital allocation.
The company also completed the sale of its Personal Care Components business for an enterprise value of €615 million (US$629.5 million) to refocus on its paper and packaging business.
Environmental sustainability progress
Mondi’s environmental sustainability framework (MAP2030), launched in 2021, sets out actions for the next decade, targeting three key areas: circular-driven packaging and paper solutions, “created by empowered people,” and combating climate change.
Each of these action areas has three high-level commitments underpinned by more detailed targets. The framework is founded on responsible business practices spanning business ethics and governance, human rights, communities, procurement and environmental impact.
Mondi notes that demand for environmentally sustainable products continues to grow, with brands and consumers wanting to contribute to a low carbon, circular economy. At Anuga FoodTec 2022, Falk Paulsen, sales and business development director at Mondi Functional Paper & Films, explained how European retailers have pledged to reduce their plastic consumption and are now searching for the right solutions to fulfill those pledges without exacerbating food waste.
Meanwhile, the company has accelerated its climate plans by committing to transition to Net-Zero by 2050, building on almost two decades of progress, including science-based targets approved by the Science Based Targets initiative (SBTi).
The Net-Zero commitment has been developed to align with the SBTi’s new Net-Zero Standard and commits Mondi to reducing greenhouse gas emissions across Scopes 1, 2 and 3 in line with a 1.5°C scenario.
Mondi has monitored increased demand for its paper-based solutions.
“[Environmentally] sustainable packaging continues to be a key priority for our customers and wider society. We are well placed to support our customers to achieve their environmental goals with circular-driven solutions that are sustainable by design, a unique product portfolio, superior technical know-how, expertise in understanding the best material choices and leading innovation capabilities,” comments King.
In recent times, Mondi equipped Kao’s Goldwell hair care with monomaterial stand-up pouches in Japan and switched its portfolio of glassine-based release liners to certified base paper, supporting the harvesting of wood from responsibly managed forests.
Future outlook
Mondi also claims to be well-positioned for the future, with a unique portfolio of leading packaging solutions, cost-advantaged asset base, a culture of continuous improvement and a strong financial position.
“Looking forward, pricing remains strong going into the second half, although we do anticipate continued inflationary pressures on our cost base and ongoing supply chain challenges. While significant geopolitical and macroeconomic uncertainties remain, we expect a year of good progress,” explains King.
“Mondi remains well-placed to deliver sustainably into the future, underpinned by our 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.”
Last month, the company invested nearly €65 million (US$66.6 million) in three flexible packaging plants in Europe to meet growing customer demand for environmentally sustainable pet food packaging.
By Joshua Poole
