FTSE 100 packaging giant Mondi gets boost to shares as it reports rising profits | City A.M.
FTSE 100 paper giant Mondi Group got a share boost this morning as it said profits rose in the first half of the year.
The figures
In the six months up to 30 June 2018, underlying earnings were up 17 per cent to €852m (£759.3m).
Profit before tax was also up six per cent to €490m, while earnings per cents were up 26 per cent to 89.2 euro cents per share.
The interim dividend came in at 21.45 euro cents per share.
Shares were up over five per cent on Friday morning following the impressive results.
The results represent an impressive turnaround from last year, when shares fell after it warned on falling profits.
Read more: Shares in this FTSE 100 company are falling after a warning on profits
Why it’s important
The company has been against the tide of negative currency effects from a weaker US dollar and a declining rouble, as well as rising material costs.
However it has still managed to churn out a good set of results, as it said that its fibre-based packaging business in particular was an area which had seen huge improvements.
Mondi also said it was on track with its €750m plan to boost growth and safeguard its “cost competitiveness” in the future.
The money will go towards increasing capacity at its paper mills and securing organic revenue by catering to higher demand in container and corrugated packing.
What Mondi said
We benefited from good demand across our packaging businesses as well as higher average selling prices, while remaining focused on initiatives to drive performance and mitigate inflationary pressures on our cost base.
The trading environment remains positive going into the second half of the year, with pricing in key fibre based product segments remaining supportive
With our robust business model, focus on leveraging key industry trends of sustainability, e-commerce and convenience, and culture of driving performance, we remain confident of sustaining our track record of delivering value accretive growth
Read more: Mondi hands out a special divi after a rise in annual profits