Mondi, a packaging and paper group, has reported ‘robust performance’ with underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) at €565m ($611.54m) for the first half (H1) of financial year 2024 (FY24).
The company noted that it was trading in line with its expectations.
It said that underlying EBITDA with a margin of 15.1% was below the comparable period due to lower average selling prices and increased personnel and operating costs due to inflation, despite improvements in sales volumes and reduced input costs.
Mondi Group CEO Andrew King said: “Our underlying EBITDA of €565m 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 decreased to €3.73bn in H1 FY24, compared to €3.88bn in the same period of the previous year.
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The company’s basic earnings per share also fell to 44.5¢, a significant drop from 63.7¢ in H1 FY23.
The company’s profit before tax in H1 FY24 stood at €296m, a decrease from €418m 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 May this year, Mondi initiated the construction of its €200m recycled containerboard mill in Duino, Italy.
