Mondi
plc
(Incorporated
in England and Wales)
ISIN:
GB00BMWC6P49
(Registered
number: 6209386) LSE
share code: MNDI
LEI:
213800LOZA69QFDC9N34
JSE share
code: MNP
1 August 2024
Results
for the six months ended 30 June
2024
Mondi, a
global leader in the production of sustainable packaging and paper,
today announces its results for the six months to 30 June 2024 ("first half" or "H1
2024").
H1
2024 - key points
•
Robust
performance with underlying EBITDA of
€565 million
- trading in line with our expectations
•
Second
quarter underlying EBITDA benefitted from rescheduled maintenance
shuts and a higher than expected forestry fair value gain, together
totalling approx. €40 million
•
Continued
progress delivering organic growth investments - on track and on
budget
•
Supporting
shareholder distributions through ordinary and special
dividends
Andrew King, Mondi Group Chief Executive Officer,
commented:
"Our
underlying EBITDA of €565 million
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 benefit of the price
increases will continue into the second half of the year. The
second half is expected to be impacted by higher planned
maintenance shuts and a likely forestry fair value
loss.
“We
continue to invest through-cycle to grow our business, enhancing
our unique packaging and paper platform and broad product offering.
Of our €1.2 billion organic growth investments, we will have
invested around 80% by the end of this year, with operations
currently ramping up following the modernisation of our Kuopio
mill, the debottlenecking of our Swiecie mill and the two expanded
box plants in Poland. Overall, our
organic growth investments are expected to deliver a meaningful
EBITDA contribution from 2025."
|
€ million,
except where noted
|
Six
months ended 30 June 2024
|
Six
months ended 30 June 2023
|
Six
months ended 31 December 2023
|
|
From
continuing operations
|
|
|
|
|
Group
revenue
|
3,739
|
3,881
|
3,449
|
|
Underlying
EBITDA1
|
565
|
680
|
521
|
|
Underlying
EBITDA margin1
|
15.1%
|
17.5%
|
15.1%
|
|
|
|
|
|
|
Profit
before tax
|
296
|
418
|
264
|
|
|
|
|
|
|
Basic
underlying earnings per share (euro cents)1,
2
|
50.5
|
67.0
|
40.8
|
|
Basic
earnings per share (euro cents)2
|
44.5
|
63.7
|
39.8
|
|
|
|
|
|
|
Interim
dividend per share (euro cents)2
|
23.33
|
23.33
|
|
|
Special
dividend per share (euro cents)2
|
160.00
|
|
|
|
|
|
|
|
|
Cash
generated from operations
|
372
|
554
|
758
|
|
Net debt
to underlying EBITDA (times)1
|
1.5
|
0.8
|
0.3
|
|
|
|
|
|
|
Return on
capital employed (ROCE)1
|
10.8%
|
19.1%
|
12.8%
|
Notes:
1 The
Group presents certain measures that are not defined or specified
according to International Financial Reporting Standards. Refer to
the Alternative Performance Measures (APMs) section at the end of
this document for further detail.
2 Per
share metrics for the six months ended 30
June 2024 (except for the special dividend) include the
impact of the share consolidation effective in January 2024. Refer to notes 7, 8 and 10 in the
condensed consolidated financial statements for further
information.
Mondi
delivered a robust performance in the first half of 2024 on the
back of improving market conditions. This performance was supported
by our continued focus on quality, reliability and offering our
customers a broad range of sustainable packaging and paper
solutions.
Underlying
EBITDA of €565 million
with margin of 15.1% was below the comparable period (H1 2023:
€680 million,
17.5%) primarily due to lower average selling prices and
inflationary personnel and operating cost pressures despite the
improvement in sales volumes and the reduction in input
costs.
Whilst
improving market demand and customer restocking led to an increase
in our volumes in the first half of the year, prices were, on
average, lower than the first half of 2023 as a result of the
substantial price declines seen throughout 2023. However, the
improving market conditions enabled a number of price increases to
be implemented across all our paper grades over the course of the
first half of the year. The full benefit of these increases are
expected to come through in the second half of this
year.
Overall,
input costs were lower in the period compared to the first half of
2023, mostly due to lower wood and energy prices. As we enter the
second half of 2024, overall input costs are stable despite recent
increases in paper for recycling prices.
Return on
capital employed was lower at 10.8% (31 December
2023: 12.8%), calculated on a rolling 12-months
basis.
The Group
continues to generate good cash flows and maintains a strong
financial position, which provides the platform to continue
investing in the business through-cycle alongside paying dividends
to shareholders. Cash generated from operations of
€372 million
was lower than the prior year (H1 2023: €554 million)
mainly due to an increase in working capital in line with the
improving market environment.
Net debt
to underlying EBITDA at 30 June 2024
was 1.5 times due to ongoing investment in the business and payment
of a special dividend.
An interim
dividend of 23.33 euro cents per
share has been declared (H1 2023: 23.33
euro cents per share).
Further
progress on delivering our strategy
Mondi has
a clear strategy to deliver value accretive growth, sustainably.
This includes extending our market leadership positions and scale
in our key packaging markets. For Flexible Packaging, our focus is
on leveraging our unique platform by building on our global
leadership positions in kraft paper and paper bags and developing
our niche positions in consumer flexibles, while bringing together
the capabilities from across the platform to deliver innovative,
sustainable packaging solutions. For Corrugated Packaging, our
focus remains on growing in Europe
and adjacent markets given our strong and integrated positions in
these regions. In Uncoated Fine Paper we continue to optimise our
existing assets and market leading positions in selected regional
markets.
We
continue to invest in upstream and downstream assets to deliver
organic growth, enhance cost competitiveness, improve environmental
performance and drive synergistic benefits of our integrated
business model. This enables us to further strengthen our broad
range of innovative sustainable solutions, and partner with
customers to contribute to a circular economy. Our people are at
the heart of our business, and we are committed to fostering a
safe, motivating and inclusive work environment, aligned with our
values of Performance, Care and Integrity.
Delivering
organic growth investments - on track and on
budget
We seek to
invest through-cycle, by leveraging our strong financial position,
leading market positions and confidence in the long-term structural
growth of the packaging markets we operate in.
We are
making good progress on our organic growth investments. Our €1.2
billion of organic growth investments remain on track and on
budget. These projects are diversified across our value chain,
products and geographic reach and comprise €0.6 billion of
investments in Corrugated Packaging and €0.6 billion of investments
in Flexible Packaging. By the end of 2024, we will have invested
around 80% of the €1.2 billion.
Our
projects are expected to take two to three years to achieve full
production following their start-up, and deliver mid-teen returns
through-cycle when fully operational. We expect these projects to
deliver a meaningful EBITDA contribution from 2025.
Advancing
our sustainability performance through the Mondi Action Plan
2030
We have a
long track record of delivering sustainably and continue to be
recognised as a leader in sustainable practices. During the period,
we maintained our top ‘A’ scores for forestry and water security
and an ‘A-’ score in climate change in CDP’s 2023 disclosures. We
also achieved Platinum status in EcoVadis’ Corporate Social
Responsibility (CSR) ratings, placing us among the top 1% of global
companies assessed for the eighth consecutive year. These
achievements, alongside other awards and recognitions, underscore
our continued dedication to sustainable practices and transparent
reporting towards achieving our ambitious commitments set out in
the Mondi Action Plan 2030 (MAP2030).
We are
making good progress delivering circular solutions to our customers
as we continue to develop innovative packaging and paper products
that are sustainable by design. For example, we developed TrayWrap,
a secondary paper packaging solution made with Mondi's kraft paper
that replaces plastic shrink film for wrapping bundles of food and
drinks. This new solution is being used by a coffee brand to
securely transport its coffee packages across Sweden. Another innovation includes FlexiBag
Reinforced, a recyclable and cost-effective mono-material plastic
packaging solution incorporating post-consumer recycled content
offering high barrier protection, making it the ideal solution for
German pet food producer mera's ‘pure green’ dry pet food packaging
range.
Our
relentless focus on employee safety, wellbeing and personal
development continues to be a top priority for the Group. Our
initiatives support and provide opportunities for our people to
build skills that support long-term employability, empower decision
making and provide purposeful employment in a diverse and inclusive
workplace.
We
continue to take action on climate and make good progress towards
achieving our 2030 milestone in support of our Net-Zero commitment
by 2050. Our investments to reduce our reliance on fossil fuels and
make our operations more energy efficient are progressing well,
most notably the modernisation investment at our Dynas mill
(Sweden) and the installation of a
power boiler at our Richards Bay mill (South Africa).
Business
unit review
Corrugated
Packaging
Mondi is a
leading producer of corrugated packaging with a cost-competitive
asset base and strong customer offering focused on quality and
reliability. We are the leading virgin containerboard producer in
Europe and the largest
containerboard producer in emerging Europe. Our virgin containerboard is a
high-quality product with excellent properties for specialised
end-use applications, ideal to meet our customers' needs around the
globe.
We are
also a leading corrugated solutions producer across central and
emerging Europe. We leverage our
integrated production network and partner with our customers to
create fully recyclable corrugated boxes and packaging.
|
€ million,
except for percentages
|
Six
months ended 30 June 2024
|
Six
months ended 30 June 2023
|
Six
months ended 31 December 2023
|
|
Segment
revenue
|
1,103
|
1,187
|
1,093
|
|
Underlying
EBITDA
|
143
|
188
|
122
|
|
Underlying
EBITDA margin
|
13.0%
|
15.8%
|
11.2%
|
|
ROCE
|
5.2%
|
15.8%
|
7.7%
|
Corrugated
Packaging delivered underlying EBITDA of €143 million
with a margin of 13.0%. This was down on the prior year (H1 2023:
€188 million,
15.8%) mainly due to lower average containerboard selling prices
and inflationary personnel and operating cost pressures exceeding
the benefit of lower input costs. Corrugated Solutions delivered a
stable financial performance.
In
Containerboard, our sales volumes were broadly flat compared to the
comparable prior year period as the business continued to deliver
its strong customer offering with its broad range of high-quality
paper grades. Selling price increases were successfully achieved
during the period across all paper grades. Average prices for the
period were however below average prices in the first half of 2023
and at similar levels to the second half of 2023. As we enter the
second half of the year, prices are now higher than the first half
of 2024.
Corrugated
Solutions achieved 3% box volume growth compared to H1 2023
supported by the growing demand for eCommerce and sustainable
packaging solutions, together with improving demand in consumer
end-use applications. We anticipate recent paper price increases to
be passed through our converting operations as we progress through
the second half of the year.
We
continue to invest through-cycle in our high-quality asset base. In
Containerboard, we are ramping up capacity following the completion
of our €125 million modernisation investment at our Kuopio mill
(Finland). This project will
increase semi-chemical fluting capacity by 55,000 tonnes while
enhancing efficiency and improving environmental performance. We
have also recently completed the €95 million debottlenecking
project at our Swiecie mill (Poland) which will increase kraftliner
capacity by 55,000 tonnes. Our €200 million investment at our Duino
mill (Italy) to convert the
existing paper machine into a high-quality, cost-competitive
recycled containerboard machine with an annual capacity of 420,000
tonnes is ongoing. Start-up of the machine is expected in the first
half of 2025.
In our
Corrugated Solutions' converting operations, we recently started up
the investments at our Simet and Warsaw plants in Poland, transforming these sites into
state-of-the-art corrugated packaging facilities tailored to serve
the specialised needs of our customers in Poland and beyond.
Flexible
Packaging
We are a
global flexible packaging producer, integrated across the value
chain with a unique portfolio of solutions. As a global leader in
the production of kraft paper and paper bags, our well-invested
mills produce high-quality kraft paper that is converted into
strong, lightweight paper-based packaging. With our high level of
integration across the value chain, our customers come to us for
scale, security of supply and global reach.
We are
also a leading producer of consumer flexible packaging in
Europe and have broad coating
capabilities which together provide an extensive and unique range
of paper, plastic and hybrid packaging solutions.
|
€ million,
except for percentages
|
Six
months ended 30 June 2024
|
Six
months ended 30 June 2023
|
Six
months ended 31 December 2023
|
|
Segment
revenue
|
2,024
|
2,062
|
1,804
|
|
Underlying
EBITDA
|
276
|
343
|
294
|
|
Underlying
EBITDA margin
|
13.6%
|
16.6%
|
16.3%
|
|
ROCE
|
12.1%
|
17.2%
|
14.4%
|
Flexible
Packaging's underlying EBITDA was €276 million
with margin of 13.6% (H1 2023: €343 million,
16.6%) as higher sales volumes and reduced input costs were offset
by lower average selling prices, inflationary personnel and
operating cost pressures and a €32 million one-off currency loss
from the devaluation of the Egyptian pound in the period, as
previously reported.
In Kraft
Paper, improvements in market demand and our continued focus on
innovative solutions supporting our customers seeking sustainable
packaging solutions, led to higher sales volumes compared to H1
2023. As a response to stronger order books, the business
successfully achieved selling price increases during the period. As
we enter the second half of the year, prices are now higher than
the first half of 2024.
In Paper
Bags, sales volumes were at similar levels to the prior year but
improved as we progressed over the period. Average pricing was
however lower compared to H1 2023 mainly as a result of lower paper
input costs. We anticipate recent paper price increases will be
passed through our converting operations as we progress through the
second half of the year.
Consumer
Flexibles and Functional Paper and Films delivered good
performances with improved margins compared to the H1 2023,
continuing to offer customers a broad range of innovative packaging
solutions.
We are
making good progress on our organic growth investments across our
platform. Our €400 million investment in a new 210,000 tonne per
annum kraft paper machine and pulp mill upgrade at our Steti mill
(Czech Republic) is progressing
well, with ramp up expected from the first half of 2025. We also
have a number of investments across our converting plant network
including expanding and upgrading the global reach of our paper bag
network, investments to consolidate our leading position in
European pet food packaging, and projects to enhance our European
coating capabilities.
During the
period we completed the acquisition of the Hinton Pulp mill in
Alberta (Canada) for USD 5 million and have a strong leadership team
in place focused on optimising the pulp mill and undertaking
feasibility studies for a kraft paper machine. The mill has the
capacity to produce around 250,000 tonnes of pulp per annum and
provides the Group with access to local, high-quality fibre from a
well-established wood basket.
Uncoated
Fine Paper
Our
Uncoated Fine Paper business produces a wide range of home, office,
converting and professional printing papers at our mills in central
Europe and South Africa. We have strong customer
relationships, leveraging our leading positions in these regions.
We also produce and sell market pulp to customers around the
world.
|
€ million,
except for percentages
|
Six
months ended 30 June 2024
|
Six
months ended 30 June 2023
|
Six
months ended 31 December 2023
|
|
Segment
revenue
|
669
|
690
|
602
|
|
Underlying
EBITDA
|
166
|
168
|
121
|
|
Forestry
fair value gain
|
49
|
86
|
42
|
|
Underlying
EBITDA excluding forestry fair value gain
|
117
|
82
|
79
|
|
Underlying
EBITDA margin
|
24.8%
|
24.3%
|
20.1%
|
|
ROCE
|
20.1%
|
33.2%
|
20.6%
|
In
Uncoated Fine Paper, underlying EBITDA was €166 million
with margin of 24.8%. The business delivered higher sales volumes
and exhibited good cost control, however lower average selling
prices and a lower forestry fair value gain resulted in a similar
underlying EBITDA to the prior year (H1 2023:
€168 million).
European
uncoated fine paper market conditions improved while in
South Africa, market demand was
lower than the comparable prior year period.
Uncoated
fine paper price increases were implemented at the start and during
the period. As we enter the second half of the year, prices are
broadly in line with H1 2024 average prices. Pulp prices increased
sharply during the period and were on average similar to the
comparative prior year period.
The
forestry fair value gain was €49 million in the first half of 2024
(H1 2023: €86 million). Due to the decrease in wood prices in
South Africa since the balance
sheet date, current prices would likely lead to a forestry fair
value loss in the second half of 2024.
Our
Uncoated Fine Paper business remains well placed, with strong
customer relationships, underpinned by a broad product portfolio,
integrated asset base and excellent service.
Finance
review
Group
performance
Mondi
delivered Group revenue of €3,739 million
and underlying EBITDA of €565 million
(H1 2023: €3,881 million
and €680 million,
respectively). Lower average selling prices and inflationary
personnel and operating cost pressures mitigated by a reduction in
input costs led to an underlying EBITDA margin of 15.1% (H1 2023:
17.5%).
Personnel,
maintenance and other net operating expenses were higher compared
to H1 2023 driven by inflationary cost pressures, a lower forestry
fair value gain, a one-off currency loss in the period from the
devaluation of the Egyptian pound and income received in the prior
year from an insurance claim.
The impact
of maintenance shuts during the period was lower than previously
expected due to the rescheduling of the maintenance shut at our
Richards Bay mill (South Africa)
from the second quarter of the year to the third quarter. We
therefore expect the underlying EBITDA impact from shuts in the
second half of the year to be around €80 million when compared to
around €20 million impact in the first half of the year.
Depreciation
and amortisation charges of €210 million
were up year-on-year (H1 2023: €199 million)
as a result of the Group's ongoing capital investment programme. We
continue to expect the full year's charges at €425-450
million.
Net
finance costs of €31 million
were lower than the comparable period (H1 2023:
€43 million)
driven mainly by currency mix effects. Following the issuance of a
€500 million Eurobond in May 2024,
further strengthening the liquidity position and extending the
maturity profile of the Group's debt, our full year expectation for
net finance costs is around €80 million.
The
underlying tax charge for the year was €71 million
giving an effective tax rate of 22.0% (H1 2023:
€102 million,
23.2%). We expect the full year's effective tax rate to remain
around 22-23%.
The Group
paid a €1.60 per share special dividend to shareholders during the
period, returning the net proceeds received from the sale of all
the Group's Russian assets as planned. The special dividend was
accompanied by a share consolidation whereby shareholders received
10 new ordinary shares for every 11 existing ordinary shares held.
Including the impact of the share consolidation, basic underlying
earnings were 50.5 euro cents per
share (H1 2023: 67.0 euro cents per
share based on weighted average number of shares prior to
consolidation).
After
taking the effect of special items into account, which comprised
the closure of a paper bags plant in Maastricht, Netherlands (€14 million) and costs relating
to the aborted all-share combination with DS Smith plc (€13
million), basic earnings were 44.5
euro cents per share (H1 2023: 63.7
euro cents per share, special items after tax charge of
€16 million).
Return on
capital employed was 10.8% (31 December
2023: 12.8%), calculated on a rolling 12-months
basis.
Cash
flow
Cash
generated from operations was €372 million
(H1 2023: €554 million),
which included an increase in working capital of
€160 million
in line with the improving market environment in the period (H1
2023: €37 million).
As a percentage of revenue, working capital was broadly in line
with the first half of last year at 17.9% (H1 2023: 17.0%). We
expect this to reduce over the second half of the year and end the
year towards our 12-14% through-cycle range.
Capital
expenditure cash payments were €397 million (H1 2023: €310 million)
as we progress with our organic growth investment projects. Our
total capital expenditure cash payments in 2024 are expected to be
towards the upper end of our previously guided range at around €900
million due to the timing of expected cash payments.
Tax paid
was €71 million (H1 2023: €91 million) and interest paid was €61
million (H1 2023: €68 million)
including derivative interest.
The Group
returned €978 million
of dividends to shareholders during the period. This comprised the
payment of the 2023 final ordinary dividend in May 2024 totalling €209 million
(H1 2023: €231 million)
and a €1.60 per share special dividend in February 2024 from the disposal of the Group's
Russian operations in 2023 totalling €769 million.
Liquidity,
treasury and borrowings
The Group
continues to maintain a strong financial position. Net debt at
30 June 2024 was
€1,603 million,
up from €419 million
at 31 December 2023, due to the
ongoing investment in the business and the payment of dividends to
shareholders. Net debt at 31 December
2023 included the proceeds received in 2023 from the
disposal of the Group's previously owned Russian operations, which
were subsequently distributed to shareholders in February 2024. As a result, net debt to
underlying EBITDA at 30 June 2024 was
1.5 times (31 December
2023: 0.3 times).
In
April 2024, the Group redeemed a €500
million Eurobond on maturity and in May
2024, issued a 3.750% €500 million Eurobond with an 8-year
tenor, thereby extending the Group’s maturity profile and further
strengthen our liquidity position. At 30
June 2024, we had available liquidity of
€1.2 billion
comprising €754 million
of undrawn committed debt facilities and cash and cash equivalents
of €411 million.
The weighted average maturity of our committed debt facilities was
3.9 years
at 30 June 2024 with no significant
short-term debt maturities. Our financing agreements do not contain
financial covenants.
The Group
maintains its investment grade credit ratings and has an A- (stable
outlook) credit rating from Standard & Poor’s and a Baa1
(stable outlook) credit rating from Moody’s Investors
Service.
Principal
risks and uncertainties
The Board
is responsible for the effectiveness of the Group’s risk management
activities and internal control processes. It has put procedures in
place for identifying, evaluating, and managing the risks faced by
the Group. In combination with the Audit Committee, the Board
conducted, in 2024, a robust assessment of the Group’s principal
and emerging risks to which Mondi is exposed and it is satisfied
that the Group has effective systems and controls in place to
manage these risks within the risk appetite levels
established.
There were
no changes to the Group’s principal risks as set out on pages 69 to
79 of the Integrated report and financial statements
2023.
Risk
management is by its nature a dynamic and ongoing process. Risk
management is of key importance given the diversity of the Group’s
locations, markets and production processes. Our internal controls
aim to provide reasonable assurance as to the accuracy, reliability
and integrity of our financial information, non-financial
disclosures and the Group’s compliance with applicable laws,
regulations and internal policies as well as the effectiveness of
internal processes.
Strategic
risks
The
industries and geographies in which we operate expose us to
specific long-term risks which are accepted by the Board as a
consequence of the Group’s chosen strategy and operating
footprint.
We
continue to monitor recent capacity announcements, demand
developments and how consumers are demanding more sustainable
packaging. We continue to develop our understanding of climate
change risks and its impact whilst continuing to improve our
disclosures and improve our responses.
The
Executive Committee and Board monitor our exposure to these risks
and evaluate investment decisions against our overall exposures so
that our strategic capital allocation takes advantage of the
opportunities arising from our deliberate exposure to such
risks.
Our
principal strategic risks relate to the following:
•
Industry
productive capacity
•
Product
substitution
•
Fluctuations
and variability in selling prices or gross margins
•
Country
risk
•
Climate
change risks
Financial
risks
We aim to
maintain an appropriate capital structure and to manage our
financial risk exposures in compliance with all laws and
regulations.
An
attentive approach to financial risk management remains in response
to tax risks and ongoing short-term currency volatility.
Our
principal financial risks relate to the following:
•
Capital
structure
•
Currency
risk
•
Tax
risk
Operational
risks
As a Group
we focus on operational excellence and investment in our people and
are committed to the responsible use of resources.
Our
investments to improve our energy efficiency, engineer out our most
significant safety risks and improve operating efficiencies reduce
the likelihood of operational risk events.
Our
principal operational risks relate to the following:
•
Cost and
availability of raw materials
•
Energy
security and related input costs
•
Technical
integrity of our operating assets
•
Environmental
impact
•
Employee
and contractor health and safety
•
Attraction
and retention of key skills and talent
•
Cyber
security risk
Compliance
risk
We have a
zero tolerance approach to non-compliance. Our strong culture and
values underpin our approach. These are emphasised in every part of
our business with a focus on integrity, honesty and
transparency.
Our
principal compliance risk relates to Reputational risk.
Going
concern
The
directors have reviewed the Group’s current financial position and
performance expectations for the period until 31 December 2025, including consideration of the
principal risks which may impact the Group’s performance in the
near term.
The Group
continues to maintain a strong financial position. Net debt at
30 June 2024 was
€1,603 million,
up from €419 million
at 31 December 2023, due to the
ongoing investment in the business and the payment of dividends to
shareholders. Net debt at 31 December
2023 included the proceeds received in 2023 from the
disposal of the Group's previously owned Russian operations, which
were subsequently distributed to shareholders in February 2024. As a result, net debt to
underlying EBITDA at 30 June 2024 was
1.5 times (31 December
2023: 0.3 times).
In
April 2024, the Group redeemed a €500
million Eurobond on maturity and in May
2024, issued a 3.750% €500 million Eurobond with an 8-year
tenor, thereby extending the Group’s maturity profile and further
strengthen our liquidity position. At 30
June 2024, we had available liquidity of
€1.2 billion
comprising €754 million
of undrawn committed debt facilities and cash and cash equivalents
of €411 million.
The weighted average maturity of our committed debt facilities was
3.9 years
at 30 June 2024 with no significant
short-term debt maturities. Our financing agreements do not contain
financial covenants.
The Group
has prepared a base case forecast reflecting recent trading
performance in the first half of the year and expectations for
market developments over the period to 31
December 2025. The base case forecast was sensitised to
reflect a severe but plausible downside scenario including possible
future impacts of the principal risks on Group performance. In such
a scenario, there remains significant liquidity
headroom.
In
addition to its modelled downside going concern scenario, the Board
has reverse stress tested the model to determine the extent of
downturn which would result in no liquidity headroom. A decline of
73% to the planned underlying EBITDA in the period until
31 December 2025, well in excess of
that contemplated in the severe but plausible downside scenario,
would need to persist throughout the observed period to result in
no liquidity headroom, which is considered very unlikely. This
reverse stress test also does not incorporate mitigating actions
such as reductions and deferrals of capital and operational
expenditure or cash preservation responses, which the Group would
implement in such an event.
Following
its assessment, the directors have formed a judgement, at the time
of approving the condensed consolidated financial statements, that
there are no material uncertainties that cast doubt on the Group’s
going concern status and that it is a reasonable expectation that
the Group has adequate resources to continue in operational
existence for the foreseeable future. For this reason, the Group
continues to adopt the going concern basis in preparing the
condensed consolidated financial statements for the six months
ended 30 June 2024.
Enquiries
Investors/analysts:
Fiona Lawrence
+44 742
587 8683
Mondi
Group: Head of Investor Relations
Media:
Chris Gurney +44
799 004 3764
Mondi
Group: Head of Corporate Communication
Richard Mountain +44
790 968 4466
FTI
Consulting
Results
presentation details
A webinar
will be held today at 09:00 (BST), 10:00 (CET/SAST).
Event
registration link:
https://storm-virtual-uk.zoom.us/webinar/register/WN_0pBl29kYTziAvbIBWkSXBw
Once
registered, you will receive a confirmation email from ‘MONDI GROUP
Events’ with the webinar link and ID.
A replay
will be available on our website within a couple hours after the
end of the live results presentation at:
https://www.mondigroup.com/investors/results-reports-and-presentations/
For any
queries, please e-mail
ir@mondigroup.com.
Directors’
responsibility statement
The
directors confirm that to the best of their knowledge:
•
the
condensed consolidated financial statements of the Group have been
prepared in accordance with International Accounting Standard 34,
‘Interim Financial Reporting’, as adopted for use in the
United Kingdom and the Disclosure
Guidance and Transparency Rules sourcebook of the United Kingdom’s
Financial Conduct Authority and that the half-year results
announcement includes a fair review of the information required by
DTR 4.2.7 and DTR 4.2.8, namely:
•
the
half-year results announcement includes a fair review of the
significant events during the six months ended 30 June 2024 and their impact on the condensed
consolidated financial statements and a description of the
principal risks and uncertainties for the remaining six months of
the year ending 31 December 2024;
•
there have
been no significant individual related party transactions during
the first six months of the financial year; and
•
there have
been no significant changes in the Group’s related party
relationships from those reported in the Integrated report and
financial statements 2023.
The
Group’s condensed consolidated financial statements, and related
notes, were approved by the Board and authorised for issue on
31 July 2024 and were signed on its
behalf by:
Andrew King Mike
Powell
Director Director
31 July 2024
Independent
review report to Mondi plc
Report
on the condensed consolidated interim financial
statements
Our
conclusion
We have
reviewed Mondi plc’s condensed consolidated interim financial
statements (the “interim financial statements”) in the half year
results announcement of Mondi plc for the six month period ended
30 June 2024
(the “period”).
Based on
our review, nothing has come to our attention that causes us to
believe that the interim financial statements are not prepared, in
all material respects, in accordance with UK adopted International
Accounting Standard 34, ‘Interim Financial Reporting’ and the
Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom’s Financial Conduct Authority.
The
interim financial statements comprise:
•
the
condensed consolidated statement of financial position as at
30 June 2024;
•
the
condensed consolidated income statement and the condensed
consolidated statement of comprehensive income for the period then
ended;
•
the
condensed consolidated statement of cash flows for the period then
ended;
•
the
condensed consolidated statement of changes in equity for the
period then ended; and
•
the
explanatory notes to the interim financial statements.
The
interim financial statements included in the half year results
announcement of Mondi plc have been prepared in accordance with UK
adopted International Accounting Standard 34, ‘Interim Financial
Reporting’ and the Disclosure Guidance and Transparency Rules
sourcebook of the United Kingdom’s Financial Conduct
Authority.
Basis
for conclusion
We
conducted our review in accordance with International Standard on
Review Engagements (UK) 2410, ‘Review of Interim Financial
Information Performed by the Independent Auditor of the Entity’
issued by the Financial Reporting Council for use in the
United Kingdom (“ISRE (UK) 2410”).
A review of interim financial information consists of making
enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review
procedures.
A review
is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK) and,
consequently, does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit
opinion.
We have
read the other information contained in the half year results
announcement and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the interim financial statements.
Conclusions
relating to going concern
Based on
our review procedures, which are less extensive than those
performed in an audit as described in the Basis for conclusion
section of this report, nothing has come to our attention to
suggest that the directors have inappropriately adopted the going
concern basis of accounting or that the directors have identified
material uncertainties relating to going concern that are not
appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with ISRE (UK) 2410. However,
future events or conditions may cause the group to cease to
continue as a going concern.
Responsibilities
for the interim financial statements and the
review
Our
responsibilities and those of the directors
The half
year results announcement, including the interim financial
statements, is the responsibility of, and has been approved by the
directors. The directors are responsible for preparing the half
year results announcement in accordance with the Disclosure
Guidance and Transparency Rules sourcebook of the United Kingdom’s
Financial Conduct Authority. In preparing the half year results
announcement, including the interim financial statements, the
directors are responsible for assessing the group’s ability to
continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the
group or to cease operations, or have no realistic alternative but
to do so.
Our
responsibility is to express a conclusion on the interim financial
statements in the half year results announcement based on our
review. Our conclusion, including our Conclusions relating to going
concern, is based on procedures that are less extensive than audit
procedures, as described in the Basis for conclusion paragraph of
this report. This report, including the conclusion, has been
prepared for and only for the company for the purpose of complying
with the Disclosure Guidance and Transparency Rules sourcebook of
the United Kingdom’s Financial Conduct Authority and for no other
purpose. We do not, in giving this conclusion, accept or assume
responsibility for any other purpose or to any other person to whom
this report is shown or into whose hands it may come save where
expressly agreed by our prior consent in writing.
PricewaterhouseCoopers
LLP
Chartered
Accountants
London
31 July 2024
Condensed
consolidated income statement
for the
six months ended 30 June
2024
|
|
|
Six
months ended 30 June 2024
|
Six
months ended 30 June 2023
|
|
€ million
|
Notes
|
Underlying
|
Special
items
(Note
4)
|
Total
|
Underlying
|
Special
items
(Note
4)
|
Total
|
|
From
continuing operations
|
|
|
|
|
|
|
|
|
Group
revenue
|
3
|
3,739
|
—
|
3,739
|
3,881
|
—
|
3,881
|
|
Materials,
energy and consumables used
|
|
(1,859)
|
—
|
(1,859)
|
(2,113)
|
—
|
(2,113)
|
|
Variable
selling expenses
|
|
(331)
|
—
|
(331)
|
(333)
|
—
|
(333)
|
|
Gross
margin
|
|
1,549
|
—
|
1,549
|
1,435
|
—
|
1,435
|
|
Maintenance
and other indirect expenses
|
|
(180)
|
—
|
(180)
|
(170)
|
—
|
(170)
|
|
Personnel
costs
|
|
(612)
|
(12)
|
(624)
|
(554)
|
(7)
|
(561)
|
|
Other net
operating expenses
|
|
(192)
|
(15)
|
(207)
|
(31)
|
(11)
|
(42)
|
|
EBITDA
|
3
|
565
|
(27)
|
538
|
680
|
(18)
|
662
|
|
Depreciation,
amortisation and impairments
|
|
(210)
|
—
|
(210)
|
(199)
|
(3)
|
(202)
|
|
Operating
profit
|
3
|
355
|
(27)
|
328
|
481
|
(21)
|
460
|
|
Net loss
from joint ventures
|
|
(2)
|
—
|
(2)
|
(2)
|
—
|
(2)
|
|
Net
monetary gain arising from hyperinflationary economies
|
|
1
|
—
|
1
|
3
|
—
|
3
|
|
Investment
income
|
|
19
|
—
|
19
|
14
|
—
|
14
|
|
Foreign
currency losses
|
|
(3)
|
—
|
(3)
|
—
|
—
|
—
|
|
Finance
costs
|
|
(47)
|
—
|
(47)
|
(57)
|
—
|
(57)
|
|
Profit
before tax
|
|
323
|
(27)
|
296
|
439
|
(21)
|
418
|
|
Tax
(charge)/credit
|
6
|
(71)
|
—
|
(71)
|
(102)
|
5
|
(97)
|
|
Profit
from continuing operations
|
|
252
|
(27)
|
225
|
337
|
(16)
|
321
|
|
From
discontinued operations
|
|
|
|
|
|
|
|
|
Loss from
discontinued operations1
|
|
|
|
—
|
|
|
(4)
|
|
Profit
for the period
|
|
|
|
225
|
|
|
317
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
Non-controlling
interests
|
|
|
|
26
|
|
|
12
|
|
Shareholders
|
|
|
|
199
|
|
|
305
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share (EPS) attributable to
shareholders2
|
|
|
|
|
|
|
|
|
euro
cents
|
|
|
|
|
|
|
|
|
From
continuing operations
|
|
|
|
|
|
|
|
|
Basic
EPS
|
7
|
|
|
44.5
|
|
|
63.7
|
|
Diluted
EPS
|
7
|
|
|
44.5
|
|
|
63.7
|
|
Basic
underlying EPS
|
7
|
|
|
50.5
|
|
|
67.0
|
|
Diluted
underlying EPS
|
7
|
|
|
50.5
|
|
|
67.0
|
|
From
continuing and discontinued operations
|
|
|
|
|
|
|
|
|
Basic
EPS
|
7
|
|
|
44.5
|
|
|
62.9
|
|
Diluted
EPS
|
7
|
|
|
44.5
|
|
|
62.9
|
Notes:
1 Discontinued
operations represent the Group’s Russian packaging operations and
the Syktyvkar mill until the disposal completed on 30 June 2023 and 4 October
2023, respectively. Details on the transaction and
information on the financial performance and cash flows of the
discontinued operations for the year ended 31 December 2023
were disclosed in note 28 of the Group’s Integrated report and
financial statements 2023.
2 On
13 February 2024, the Group returned
the net proceeds from the sale of the Group’s Russian assets to its
shareholders by way of a special dividend. In addition, in order to
maintain the comparability, so far as possible, of Mondi plc’s
share price before and after the special dividend, the special
dividend was accompanied by a share consolidation, which took
effect on 29 January
2024, resulting in shareholders receiving 10 new ordinary
shares for every 11 existing ordinary shares. Further details are
provided in notes 7, 8 and 10.
Condensed
consolidated statement of comprehensive income
for the
six months ended 30 June
2024
|
€ million
|
Six
months ended 30 June 2024
|
Six
months ended 30 June 2023
|
|
|
|
|
|
Profit
for the period
|
225
|
317
|
|
|
|
|
|
Items
that may subsequently be or have been reclassified to the condensed
consolidated income statement
|
|
|
|
Fair value
losses arising from cash flow hedges of continuing
operations
|
(2)
|
—
|
|
Exchange
differences on translation of foreign continuing non-euro
operations
|
52
|
(106)
|
|
Exchange
differences on translation of foreign discontinued non-euro
operations
|
—
|
(192)
|
|
Reclassification
of foreign currency translation reserve to the condensed
consolidated income statement on disposal of business of
discontinued operations
|
—
|
34
|
|
Items
that will not subsequently be reclassified to the condensed
consolidated income statement
|
|
|
|
Remeasurements
of retirement benefits plans of continuing operations
|
4
|
(12)
|
|
Remeasurements
of retirement benefits plans of discontinued operations
|
—
|
2
|
|
Tax effect
thereof
|
(1)
|
3
|
|
Other
comprehensive income/(expense) for the period
|
53
|
(271)
|
|
|
|
|
|
Total
comprehensive income for the period
|
278
|
46
|
|
|
|
|
|
Attributable
to:
|
|
|
|
Non-controlling
interests
|
33
|
—
|
|
Shareholders
|
245
|
46
|
|
|
|
|
|
Total
comprehensive income/(expense) for the period attributable to
shareholders
arises
from:
|
|
|
|
Continuing
operations
|
245
|
206
|
|
Discontinued
operations
|
—
|
(160)
|
Condensed
consolidated statement of financial position
as at
30 June 2024
|
€ million
|
Notes
|
As
at 30 June 2024
|
As
at 31 December 2023
|
|
Property,
plant and equipment
|
|
4,835
|
4,619
|
|
Goodwill
|
|
766
|
765
|
|
Intangible
assets
|
|
70
|
68
|
|
Forestry
assets
|
9
|
567
|
519
|
|
Investments
in joint ventures
|
|
6
|
8
|
|
Financial
instruments
|
|
29
|
28
|
|
Deferred
tax assets
|
|
18
|
24
|
|
Net
retirement benefits asset
|
|
5
|
5
|
|
Other
non-current assets
|
|
3
|
5
|
|
Total
non-current assets
|
|
6,299
|
6,041
|
|
Inventories
|
|
1,138
|
1,049
|
|
Trade and
other receivables
|
|
1,552
|
1,254
|
|
Current
tax assets
|
|
20
|
14
|
|
Financial
instruments
|
|
11
|
14
|
|
Cash and
cash equivalents
|
13b
|
415
|
1,592
|
|
Total
current assets
|
|
3,136
|
3,923
|
|
Total
assets
|
|
9,435
|
9,964
|
|
|
|
|
|
|
Short-term
borrowings
|
11
|
(61)
|
(559)
|
|
Trade and
other payables
|
|
(1,353)
|
(1,219)
|
|
Current
tax liabilities
|
|
(56)
|
(78)
|
|
Provisions
|
|
(37)
|
(21)
|
|
Financial
instruments
|
|
(12)
|
(4)
|
|
Total
current liabilities
|
|
(1,519)
|
(1,881)
|
|
Medium and
long-term borrowings
|
11
|
(1,959)
|
(1,460)
|
|
Net
retirement benefits liability
|
|
(154)
|
(159)
|
|
Deferred
tax liabilities
|
|
(354)
|
(322)
|
|
Provisions
|
|
(31)
|
(27)
|
|
Other
non-current liabilities
|
|
(18)
|
(19)
|
|
Total
non-current liabilities
|
|
(2,516)
|
(1,987)
|
|
Total
liabilities
|
|
(4,035)
|
(3,868)
|
|
|
|
|
|
|
Net
assets
|
|
5,400
|
6,096
|
|
|
|
|
|
|
Equity
|
|
|
|
|
Share
capital
|
10
|
97
|
97
|
|
Own
shares
|
|
(14)
|
(17)
|
|
Retained
earnings
|
|
4,663
|
5,434
|
|
Other
reserves
|
|
181
|
141
|
|
Total
attributable to shareholders
|
|
4,927
|
5,655
|
|
Non-controlling
interests in equity
|
|
473
|
441
|
|
Total
equity
|
|
5,400
|
6,096
|
The
Group’s condensed consolidated financial statements, and related
notes 1 to 18, were approved by the Board and authorised for issue
on 31 July 2024 and were signed on
its behalf by:
Andrew King Mike
Powell
Director Director
Mondi plc
company registered number: 6209386
Condensed
consolidated statement of changes in equity
for the
six months ended 30 June
2024
|
€ million
|
Equity
attributable
to shareholders
|
Non-controlling
interests
|
Total
equity
|
|
At 1
January 2024
|
5,655
|
441
|
6,096
|
|
Total
comprehensive income for the period
|
245
|
33
|
278
|
|
Profit for
the period
|
199
|
26
|
225
|
|
Other
comprehensive income
|
46
|
7
|
53
|
|
Hyperinflation
monetary adjustment
|
4
|
—
|
4
|
|
Transactions
with shareholders in their capacity as
shareholders
|
|
|
|
|
Dividends
|
(978)
|
(4)
|
(982)
|
|
Purchases
of own shares
|
(5)
|
—
|
(5)
|
|
Injection
from non-controlling interests
|
—
|
3
|
3
|
|
Other
|
6
|
—
|
6
|
|
At
30 June 2024
|
4,927
|
473
|
5,400
|
|
€ million
|
Equity
attributable
to shareholders
|
Non-controlling
interests
|
Total
equity
|
|
At 1
January 2023
|
5,794
|
460
|
6,254
|
|
Total
comprehensive income for the period
|
46
|
—
|
46
|
|
Profit for
the period
|
305
|
12
|
317
|
|
Other
comprehensive expense
|
(259)
|
(12)
|
(271)
|
|
Hyperinflation
monetary adjustment
|
5
|
—
|
5
|
|
Transactions
with shareholders in their capacity as
shareholders
|
|
|
|
|
Dividends
|
(231)
|
(4)
|
(235)
|
|
Purchases
of own shares
|
(4)
|
—
|
(4)
|
|
Non-controlling
interests bought out
|
21
|
(28)
|
(7)
|
|
Other
|
4
|
—
|
4
|
|
At
30 June 2023
|
5,635
|
428
|
6,063
|
Equity
attributable to shareholders
|
€ million
|
As
at 30 June 2024
|
As
at 31 December 2023
|
|
Share
capital
|
97
|
97
|
|
Own
shares
|
(14)
|
(17)
|
|
Retained
earnings
|
4,663
|
5,434
|
|
Cumulative
translation adjustment reserve
|
(475)
|
(520)
|
|
Post-retirement
benefits reserve
|
(53)
|
(53)
|
|
Share-based
payment reserve
|
15
|
19
|
|
Cash flow
hedge reserve
|
—
|
1
|
|
Merger
reserve
|
667
|
667
|
|
Other
sundry reserves
|
27
|
27
|
|
Total
|
4,927
|
5,655
|
Condensed
consolidated statement of cash flows
for the
six months ended 30 June
2024
|
€ million
|
Notes
|
Six
months ended 30 June 2024
|
Six
months ended 30 June 2023
|
|
Cash
flows from operating activities
|
|
|
|
|
Cash
generated from continuing operations
|
13a
|
372
|
554
|
|
Income tax
paid
|
|
(71)
|
(91)
|
|
Net cash
generated from operating activities from discontinued
operations
|
|
—
|
159
|
|
Net
cash generated from operating activities
|
|
301
|
622
|
|
|
|
|
|
|
Cash
flows from investing activities
|
|
|
|
|
Investment
in property, plant and equipment
|
|
(397)
|
(310)
|
|
Investment
in intangible assets
|
|
(8)
|
(6)
|
|
Investment
in forestry assets
|
9
|
(23)
|
(22)
|
|
Proceeds
from the disposal of property, plant and equipment
|
|
3
|
2
|
|
Proceeds
from the disposal of financial asset investments
|
|
—
|
1
|
|
Acquisition
of businesses, net of cash and cash equivalents
|
12
|
(6)
|
(37)
|
|
Loans
advanced to related and external parties
|
|
(1)
|
(1)
|
|
Interest
received
|
|
22
|
12
|
|
Other
investing activities
|
|
11
|
17
|
|
Net cash
used in investing activities from discontinued
operations
|
|
—
|
(10)
|
|
Net
cash used in investing activities
|
|
(399)
|
(354)
|
|
|
|
|
|
|
Cash
flows from financing activities
|
|
|
|
|
Proceeds
from issue of Eurobond
|
11
|
496
|
—
|
|
Repayment
of Eurobond
|
11
|
(500)
|
—
|
|
Proceeds
from other medium and long-term borrowings
|
13c
|
215
|
—
|
|
Repayment
of other medium and long-term borrowings
|
13c
|
(215)
|
—
|
|
Proceeds
from short-term borrowings
|
13c
|
8
|
17
|
|
Repayment
of short-term borrowings
|
13c
|
(11)
|
(32)
|
|
Repayment
of lease liabilities
|
13c
|
(13)
|
(11)
|
|
Interest
paid
|
|
(43)
|
(42)
|
|
Dividends
paid to shareholders
|
8
|
(978)
|
(231)
|
|
Dividends
paid to non-controlling interests
|
|
(4)
|
(4)
|
|
Purchases
of own shares
|
|
(5)
|
(4)
|
|
Injection
from non-controlling interests
|
|
3
|
—
|
|
Non-controlling
interests bought out
|
|
—
|
(7)
|
|
Net cash
outflow from debt-related derivative financial
instruments
|
13c
|
(23)
|
(40)
|
|
Net cash
used in financing activities from discontinued
operations
|
|
—
|
(5)
|
|
Net
cash used in financing activities
|
|
(1,070)
|
(359)
|
|
|
|
|
|
|
Net
decrease in cash and cash equivalents
|
|
(1,168)
|
(91)
|
|
|
|
|
|
|
Cash and
cash equivalents at beginning of period
|
|
1,592
|
1,381
|
|
Cash
movement in the period
|
13c
|
(1,168)
|
(91)
|
|
Effects of
changes in foreign exchange rates
|
13c
|
(13)
|
(99)
|
|
Cash
and cash equivalents at end of period
|
13b
|
411
|
1,191
|
Notes
to the condensed consolidated financial
statements
for the
six months ended 30 June
2024
1
Basis
of preparation
These
condensed consolidated financial statements as at and for the six
months ended 30 June 2024 comprise
Mondi plc and its subsidiaries (referred to as the ‘Group’), and
the Group’s share of the results and net assets of its associates
and joint ventures.
The
Group’s condensed consolidated financial statements have been
prepared in accordance with International Accounting Standard 34,
‘Interim Financial Reporting’ as adopted for use in the
United Kingdom (UK) and the
Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom’s Financial Conduct Authority. They should be read in
conjunction with the Group’s Integrated report and financial
statements 2023, prepared in accordance with UK-adopted
International Accounting Standards and with the requirements of the
Companies Act 2006 as applicable to companies reporting under those
standards.
The
condensed consolidated financial statements have been prepared on a
going concern basis as discussed in the commentary under the
heading ‘Going concern’, which is incorporated by reference into
these condensed consolidated financial statements.
The
financial information set out above does not constitute statutory
accounts as defined by section 434 of the Companies Act 2006. A
copy of the statutory accounts for the year ended
31 December 2023
has been delivered to the Registrar of Companies. The auditors have
reported on those accounts; their report was (i) unqualified, (ii)
did not include a reference to any matters to which the auditors
drew attention by way of emphasis without qualifying their report
and (iii) did not contain a statement under section 498 (2) or (3)
of the Companies Act 2006. The financial information set out above
has been reviewed, not audited.
These
condensed consolidated financial statements have been prepared on
the historical cost basis, as modified by forestry assets, pension
assets, certain financial assets and financial liabilities held at
fair value through profit and loss, assets acquired and liabilities
assumed in a business combination and accounting in
hyperinflationary economies.
The
preparation of these condensed consolidated financial statements
includes the use of estimates and assumptions. Although the
estimates used are based on management's best information about
current circumstances and future events and actions, actual results
may differ from these estimates.
In
preparing these condensed consolidated financial statements, the
critical accounting judgements made by management in applying the
Group’s accounting policies and significant accounting estimates as
identified in the Group’s Integrated report and financial
statements 2023 were the same. Refer to note 9 for details on the
valuation of forestry assets.
2
Accounting
policies
The same
accounting policies, methods of computation and presentation have
been followed in the preparation of the condensed consolidated
financial statements for the six months ended 30 June 2024 as were applied in the preparation
of the Group’s annual financial statements for the year ended
31 December 2023,
except as follows:
•
A number
of amendments to IFRS Accounting Standards became effective for the
financial period beginning on 1 January
2024, but the Group did not have to change its accounting
policies or make any retrospective adjustments as a result of
adopting these amendments.
•
Consistent
with previous half year reports, taxes on income in the interim
period are accrued using the tax rate that would be applicable to
expected total annual profits or losses. The Group’s assessment of
the OECD Pillar 2 model rules is provided in note 6.
Alternative
Performance Measures
The Group
presents certain measures of financial performance, position or
cash flows in the condensed consolidated financial statements that
are not defined or specified according to IFRS Accounting
Standards. These measures, referred to as APMs, are defined at the
end of this document and where relevant reconciled to IFRS
Accounting Standards.
3
Operating
segments
The
Group’s operating segments are reported in a manner consistent with
the internal reporting provided to the Executive Committee, the
chief operating decision-making body. The operating segments are
managed based on the nature of the underlying products produced by
those businesses and comprise three distinct segments. Each of the
operating segments represents a reportable segment and derives its
income from the sale of manufactured products.
Six
months ended 30 June
20241
|
€ million,
unless otherwise stated
|
Corrugated
Packaging
|
Flexible
Packaging
|
Uncoated
Fine Paper
|
Corporate
|
Intersegment
elimination
|
Total
continuing operations
|
|
Segment
revenue
|
1,103
|
2,024
|
669
|
—
|
(57)
|
3,739
|
|
Internal
revenue
|
(11)
|
(18)
|
(28)
|
—
|
57
|
—
|
|
External
revenue
|
1,092
|
2,006
|
641
|
—
|
—
|
3,739
|
|
Underlying
EBITDA
|
143
|
276
|
166
|
(20)
|
—
|
565
|
|
Depreciation
|
(75)
|
(95)
|
(32)
|
—
|
—
|
(202)
|
|
Amortisation
|
(3)
|
(4)
|
(1)
|
—
|
—
|
(8)
|
|
Underlying
operating profit/(loss)
|
65
|
177
|
133
|
(20)
|
—
|
355
|
|
Special
items before tax
|
—
|
(14)
|
—
|
(13)
|
—
|
(27)
|
|
Capital
employed
|
2,512
|
3,321
|
1,222
|
(52)
|
—
|
7,003
|
|
Trailing
12-month average capital employed
|
2,074
|
3,039
|
1,097
|
(122)
|
—
|
6,088
|
|
Additions
to non-current non-financial assets
|
133
|
219
|
69
|
—
|
—
|
421
|
|
Capital
expenditure cash payments
|
137
|
218
|
42
|
—
|
—
|
397
|
|
Underlying
EBITDA margin (%)
|
13.0
|
13.6
|
24.8
|
—
|
—
|
15.1
|
|
Return
on capital employed (%)
|
5.2
|
12.1
|
20.1
|
—
|
—
|
10.8
|
|
Average
number of employees (thousands)2
|
6.5
|
11.9
|
2.7
|
0.1
|
—
|
21.2
|
Notes:
1 See
definitions of APMs at the end of this document.
2 Presented
on a full time employee equivalent basis.
Six
months ended 30 June
20231
|
€ million,
unless otherwise stated
|
Corrugated
Packaging
|
Flexible
Packaging
|
Uncoated
Fine Paper
|
Corporate
|
Intersegment
elimination
|
Total
continuing operations
|
|
Segment
revenue
|
1,187
|
2,062
|
690
|
—
|
(54)
|
3,885
|
|
Internal
revenue2
|
(13)
|
(19)
|
(26)
|
—
|
54
|
(4)
|
|
External
revenue
|
1,174
|
2,043
|
664
|
—
|
—
|
3,881
|
|
Underlying
EBITDA
|
188
|
343
|
168
|
(19)
|
—
|
680
|
|
Depreciation
|
(69)
|
(88)
|
(33)
|
(1)
|
—
|
(191)
|
|
Amortisation
|
(3)
|
(4)
|
(1)
|
—
|
—
|
(8)
|
|
Underlying
operating profit/(loss)
|
116
|
251
|
134
|
(20)
|
—
|
481
|
|
Special
items before tax
|
—
|
—
|
(21)
|
—
|
—
|
(21)
|
|
Capital
employed
|
2,217
|
3,161
|
1,077
|
(49)
|
—
|
6,406
|
|
Trailing
12-month average capital employed
|
2,092
|
3,045
|
1,064
|
(67)
|
—
|
6,134
|
|
Additions
to non-current non-financial assets
|
173
|
176
|
50
|
—
|
—
|
399
|
|
Capital
expenditure cash payments
|
132
|
154
|
24
|
—
|
—
|
310
|
|
Underlying
EBITDA margin (%)
|
15.8
|
16.6
|
24.3
|
—
|
—
|
17.5
|
|
Return
on capital employed (%)
|
15.8
|
17.2
|
33.2
|
—
|
—
|
19.1
|
|
Average
number of employees (thousands)3
|
6.5
|
11.7
|
2.9
|
0.1
|
—
|
21.2
|
Notes:
1 See
definitions of APMs at the end of this document.
2 Continuing
operations' internal revenue of €4 million relates to transactions
with discontinued operations.
3 Presented
on a full time employee equivalent basis.
Year
ended 31 December
20231
|
€ million,
unless otherwise stated
|
Corrugated
Packaging
|
Flexible
Packaging
|
Uncoated
Fine Paper
|
Corporate
|
Intersegment
elimination
|
Total
continuing operations
|
|
Segment
revenue
|
2,280
|
3,866
|
1,292
|
—
|
(104)
|
7,334
|
|
Internal
revenue2
|
(23)
|
(33)
|
(52)
|
—
|
104
|
(4)
|
|
External
revenue
|
2,257
|
3,833
|
1,240
|
—
|
—
|
7,330
|
|
Underlying
EBITDA
|
310
|
637
|
289
|
(35)
|
—
|
1,201
|
|
Depreciation
and impairments3
|
(144)
|
(183)
|
(66)
|
(1)
|
—
|
(394)
|
|
Amortisation
|
(7)
|
(8)
|
(2)
|
—
|
—
|
(17)
|
|
Underlying
operating profit/(loss)
|
159
|
446
|
221
|
(36)
|
—
|
790
|
|
Special
items before tax
|
—
|
—
|
(27)
|
—
|
—
|
(27)
|
|
Capital
employed
|
2,318
|
3,167
|
1,095
|
(65)
|
—
|
6,515
|
|
Trailing
12-month average capital employed
|
2,057
|
3,068
|
1,075
|
(65)
|
—
|
6,135
|
|
Additions
to non-current non-financial assets
|
379
|
427
|
129
|
—
|
—
|
935
|
|
Capital
expenditure cash payments
|
326
|
425
|
79
|
—
|
—
|
830
|
|
Underlying
EBITDA margin (%)
|
13.6
|
16.5
|
22.4
|
—
|
—
|
16.4
|
|
Return
on capital employed (%)
|
7.7
|
14.4
|
20.6
|
—
|
—
|
12.8
|
|
Average
number of employees (thousands)4
|
6.5
|
11.6
|
2.8
|
0.1
|
—
|
21.0
|
Notes:
1 See
definitions of APMs at the end of this document.
2 Continuing
operations' internal revenue of €4 million relates to
transactions with discontinued operations.
3 Includes
only impairment not classified as special items.
4 Presented
on a full time employee equivalent basis.
External
revenue by location of contribution and by location of
customer
|
|
External
revenue by location of contribution
|
External
revenue by location of customer
|
|
€
million
|
Six
months ended 30 June 2024
|
Six
months ended 30 June 2023
|
Six
months ended 30 June 2024
|
Six
months ended 30 June 2023
|
|
Africa
|
|
|
|
|
|
South
Africa
|
322
|
330
|
249
|
255
|
|
Rest of
Africa
|
46
|
41
|
186
|
208
|
|
Africa
total
|
368
|
371
|
435
|
463
|
|
Western
Europe
|
|
|
|
|
|
Austria
|
657
|
749
|
85
|
90
|
|
Germany
|
284
|
312
|
478
|
520
|
|
United
Kingdom
|
1
|
2
|
100
|
102
|
|
Rest of
western Europe
|
336
|
434
|
839
|
932
|
|
Western
Europe total
|
1,278
|
1,497
|
1,502
|
1,644
|
|
Emerging
Europe
|
|
|
|
|
|
Czech
Republic
|
370
|
355
|
130
|
134
|
|
Poland
|
648
|
657
|
366
|
368
|
|
Turkiye
|
225
|
171
|
254
|
210
|
|
Rest of
emerging Europe
|
474
|
484
|
269
|
270
|
|
Emerging
Europe total
|
1,717
|
1,667
|
1,019
|
982
|
|
North
America
|
325
|
302
|
423
|
444
|
|
South
America
|
5
|
—
|
43
|
50
|
|
Asia and
Australia
|
46
|
44
|
317
|
298
|
|
Group
revenue from continuing operations
|
3,739
|
3,881
|
3,739
|
3,881
|
4
Special
items
The Group
separately discloses special items, an APM as defined at the end of
this document, on the face of the condensed consolidated income
statement to assist its stakeholders in understanding the
underlying financial performance achieved by the Group on a basis
that is comparable from year to year.
|
€ million
|
Six
months ended 30 June 2024
|
Six
months ended 30 June 2023
|
|
Operating
special items
|
|
|
|
Impairment
of assets
|
—
|
(3)
|
|
Restructuring
and closure costs:
|
|
|
|
Personnel
costs
|
(12)
|
(7)
|
|
Other
restructuring and closure costs
|
(2)
|
(11)
|
|
Costs
relating to the aborted all-share combination with DS Smith
plc
|
(13)
|
—
|
|
Total
special items before tax
|
(27)
|
(21)
|
|
Tax credit
(see note 6)
|
—
|
5
|
|
Total
special items
|
(27)
|
(16)
|
The
operating special items resulted in a cash outflow from operating
activities for the six months ended 30 June
2024 of €18 million
(six months ended 30 June 2023: €1
million).
The
special items during the period ended 30 June 2024
comprised:
•
Flexible
Packaging
–
Closure of
a paper bags plant in Maastricht (Netherlands). Restructuring and closure costs
of €14 million were recognised.
•
Corporate
–
€13
million of costs relating to the aborted all-share combination with
DS Smith plc. On 19 April 2024, the
Board announced it did not intend to make an offer for DS Smith plc
following a period of due diligence and after carefully considering
the value the all-share combination with DS Smith plc would deliver
to Mondi's shareholders.
Details of
the special items for the year ended 31 December 2023
were disclosed in note 3 of the Group’s Integrated report and
financial statements 2023.
5
Write-down
of inventories to net realisable value
|
€ million
|
Six
months ended 30 June 2024
|
Six
months ended 30 June 2023
|
|
Write-down
of inventories to net realisable value
|
(43)
|
(50)
|
|
Aggregate
reversal of previous write-downs of inventories
|
34
|
29
|
The
reversal of previous write-downs of inventories relates to goods
that had been written down to net realisable value and were
subsequently sold above their carrying value.
6
Tax
charge
The
Group’s effective tax rate before special items, an APM as defined
at the end of this document, was 22.0% for the six months ended
30 June 2024 (six months ended
30 June 2023: 23.2%).
|
€ million
|
Six
months ended 30 June 2024
|
Six
months ended 30 June 2023
|
|
UK
corporation tax at 25% (2023: 23.5%)
|
—
|
—
|
|
Overseas
tax
|
48
|
67
|
|
Current
tax in respect of prior periods
|
(3)
|
(3)
|
|
Current
tax
|
45
|
64
|
|
Deferred
tax in respect of the current period
|
26
|
53
|
|
Deferred
tax in respect of prior periods
|
—
|
(15)
|
|
Tax
charge before special items
|
71
|
102
|
|
Current
tax on special items
|
—
|
(5)
|
|
Tax
credit on special items (see note 4)
|
—
|
(5)
|
|
Tax
charge for the period
|
71
|
97
|
|
Current
tax charge
|
45
|
59
|
|
Deferred
tax charge
|
26
|
38
|
|
|
|
|
On
24 May 2021, legislation was
substantively enacted in the UK to increase the corporate tax rate
from 19% to 25% with effect from 1 April
2023. In the year ended 31 December
2023, the 23.5% UK corporation tax rate referenced in the
table above reflects the average tax rate that has applied during
the year.
The Group
is within the scope of the OECD Pillar 2 model rules as of
1 January 2024. It is expected that
the effective tax rate (as calculated under the Pillar 2 rules) in
the majority of countries in which the Group operates will exceed
15% for the year ending 31 December
2024. Additional Pillar 2 top-up tax of €0.3m has been
included within the current tax charge for the six months ended
30 June 2024, mostly arising in a
small number of jurisdictions benefiting from tax incentives on
capital investments and tax holidays.
7
Earnings
per share (EPS)
On
13 February 2024, the Group returned
the net proceeds from the sale of the Group’s Russian assets to its
shareholders by way of a special dividend (see note 8). In
addition, in order to maintain the comparability, so far as
possible, of Mondi plc’s share price before and after the special
dividend, the special dividend was accompanied by a share
consolidation, which took effect on 29 January
2024, resulting in shareholders receiving 10 new ordinary
shares for every 11 existing ordinary shares (see note
10).
The
special dividend approximates the amount the Group would have paid
if it had repurchased the shares at market price. For calculating
basic and diluted EPS measures, the Board concluded that the
overall effect of the share consolidation and special dividend was
a share repurchase at fair value. Therefore, the reduction in the
number of shares as a result of the share consolidation was
reflected in the denominator in the current year prospectively from
the day the dividend was paid (i.e. 13 February
2024). The weighted average number of ordinary shares
outstanding for 2023 was not restated.
|
|
EPS
attributable to shareholders
|
|
euro
cents
|
Six
months ended 30 June 2024
|
Six
months ended 30 June 2023
|
|
From
continuing operations
|
|
|
|
Basic
EPS
|
44.5
|
63.7
|
|
Diluted
EPS
|
44.5
|
63.7
|
|
Basic
underlying EPS
|
50.5
|
67.0
|
|
Diluted
underlying EPS
|
50.5
|
67.0
|
|
From
continuing and discontinued operations
|
|
|
|
Basic
EPS
|
44.5
|
62.9
|
|
Diluted
EPS
|
44.5
|
62.9
|
|
Basic
headline EPS
|
41.8
|
92.8
|
|
Diluted
headline EPS
|
41.8
|
92.8
|
The
calculation of basic and diluted EPS, basic and diluted underlying
EPS and basic and diluted headline EPS is based on the following
data:
|
|
Earnings
|
|
€ million
|
Six
months ended 30 June 2024
|
Six
months ended 30 June 2023
|
|
Profit
for the period attributable to shareholders
|
199
|
305
|
|
Arises
from:
|
|
|
|
Continuing
operations
|
199
|
309
|
|
Discontinued
operations
|
—
|
(4)
|
|
Special
items (see note 4)
|
27
|
21
|
|
Related
tax (see note 4)
|
—
|
(5)
|
|
Total
earnings for the period (prior to special
items)
|
226
|
321
|
|
Arises
from:
|
|
|
|
Continuing
operations
|
226
|
325
|
|
Discontinued
operations
|
—
|
(4)
|
|
Gain on
disposal of property, plant and equipment
|
(2)
|
—
|
|
Restructuring
costs (see note 4)
|
(14)
|
(18)
|
|
Costs
relating to the aborted all-share combination with DS Smith plc
(see note 4)
|
(13)
|
—
|
|
Gain on
purchase of business before transaction-related costs (see note
12)
|
(13)
|
—
|
|
Loss
arising from sale and leaseback transaction
|
3
|
—
|
|
Loss on
disposal of business from discontinued operations
|
—
|
46
|
|
Impairments
included in loss from discontinued operations
|
—
|
113
|
|
Related
tax
|
—
|
(12)
|
|
Headline
earnings for the period
|
187
|
450
|
Underlying
earnings, total earnings (prior to special items) and headline
earnings represent APMs which are defined at the end of this
document.
|
|
Weighted
average number of shares
|
|
million
|
Six
months ended 30 June 2024
|
Six
months ended 30 June 2023
|
|
Basic
number of ordinary shares outstanding
|
447.2
|
485.1
|
|
Diluted
number of ordinary shares outstanding
|
447.2
|
485.1
|
8
Dividends
The
interim ordinary dividend for the year ending 31 December
2024 of 23.33 euro cents per
ordinary share will be paid on Friday 27
September 2024 to those shareholders on the register of
Mondi plc on Friday 23 August 2024.
The dividend will be paid from distributable reserves of Mondi plc,
as presented in the annual financial statements for the year ended
31 December
2023. The interim ordinary dividend is not recognised as a
liability at 30 June 2024.
|
|
Six
months ended 30 June 2024
|
Year
ended 31 December
2023
|
|
|
euro
cents
per
share
|
€ million
|
euro
cents
per
share
|
€ million
|
|
Final
ordinary dividend in respect of prior year
|
46.67
|
209
|
48.33
|
231
|
|
Special
dividend
|
160.00
|
769
|
—
|
—
|
|
Interim
ordinary dividend in respect of current year
|
23.33
|
103
|
23.33
|
114
|
The
interim ordinary dividend declared for the year ended
31 December
2023 of 23.33 euro cents per
ordinary share was paid in September
2023.
On
13 February 2024, the Group returned
the net proceeds from the sale of the Group’s Russian assets to
shareholders by way of a special dividend of €1.60 per existing
ordinary share (see note 10 for further details). The final
ordinary dividend for the year ended 31 December
2023 was declared after the share consolidation took effect
and therefore, was declared based on the number of new ordinary
shares.
Dividend
timetable
The
interim ordinary dividend for the year ending 31 December
2024 will be paid in accordance with the following
timetable:
|
Last
date to trade shares cum-dividend
|
|
|
JSE
Limited
|
Tuesday 20
August 2024
|
|
London
Stock Exchange
|
Wednesday
21 August 2024
|
|
|
|
|
Shares
commence trading ex-dividend
|
|
|
JSE
Limited
|
Wednesday
21 August 2024
|
|
London
Stock Exchange
|
Thursday
22 August 2024
|
|
|
|
|
Record
date
|
Friday 23
August 2024
|
|
|
|
|
Last
date for receipt of Dividend Reinvestment Plan (DRIP) elections by
Central Securities Depository Participants
|
Thursday
29 August 2024
|
|
|
|
|
Last
date for DRIP elections to UK Registrar and South African Transfer
Secretaries
|
|
|
South
African Register
|
Friday 30
August 2024
|
|
UK
Register
|
Monday 9
September 2024
|
|
|
|
|
Payment
Date
|
Friday 27
September 2024
|
|
|
|
|
DRIP
purchase settlement date (subject to market conditions and the
purchase of shares in the open market)
|
|
|
UK
Register
|
Tuesday 1
October 2024
|
|
South
African Register
|
Friday 4
October 2024
|
|
|
|
|
Results of
Dividend Reinvestment Plan announcement released
|
Friday 11
October 2024
|
|
|
|
|
Currency
conversion date
|
|
|
ZAR/euro
|
Thursday 1
August 2024
|
|
Euro/sterling
|
Friday 13
September 2024
|
Share
certificates on Mondi plc's South African register may not be
dematerialised or rematerialised between Wednesday 21 August 2024 and Friday 23 August 2024, both dates inclusive, nor may
transfers between the UK and South African registers of Mondi plc
take place between Wednesday 14 August 2024
and Friday 23 August 2024, both dates
inclusive.
Information
relating to the dividend tax to be withheld from Mondi plc
shareholders on the South African branch register will be announced
separately, together with the ZAR/euro exchange rate to be applied,
on or shortly after Thursday 1 August
2024.
9
Forestry
assets
|
€ million
|
As
at 30 June 2024
|
As
at 30 June 2023
|
As
at 31 December 2023
|
|
At 1
January
|
519
|
485
|
485
|
|
Investment
in forestry assets
|
23
|
22
|
48
|
|
Fair value
gains
|
49
|
86
|
128
|
|
Felling
costs
|
(47)
|
(41)
|
(87)
|
|
Currency
movements
|
23
|
(60)
|
(55)
|
|
At
30 June / 31 December
|
567
|
492
|
519
|
The fair
value of forestry assets is a level 3 measure in terms of the fair
value measurement hierarchy (see note 16), consistent with prior
years. The fair value of forestry assets continues to be determined
using a market-based approach. The valuation process and key
observable inputs were largely consistent with those applied for
the year ended 31 December 2023,
as described in note 14 of the Group’s Integrated report and
financial statements 2023.
10
Share
capital
On
13 February 2024, the Group returned
the net proceeds from the sale of the Group’s Russian assets to
shareholders by way of a special dividend of €1.60 per existing
ordinary share. In addition, in order to maintain the
comparability, so far as possible, of Mondi plc’s share price
before and after the special dividend, the special dividend was
accompanied by a share consolidation, which took effect on
29 January 2024, resulting in
shareholders receiving 10 new ordinary shares with a nominal value
of €0.22 each for every 11 existing ordinary shares with a nominal
value of €0.20 each.
To effect
the share consolidation, the Group issued 3 additional ordinary
shares prior to the record date for the share consolidation,
increasing the number of ordinary shares from 485,553,780 ordinary
shares to 485,553,783 ordinary shares, so that the number of the
existing ordinary shares in issue at the time of the consolidation
was exactly divisible by 11, such that there was no remaining
fraction of a share. Following the share consolidation, the total
number of ordinary shares issued decreased by 44,141,253 ordinary
shares from 485,553,783 ordinary shares to 441,412,530 ordinary
shares, while the total nominal value of the share capital of the
Group remained unchanged at €97 million.
|
|
Number of shares
|
€ million
|
|
At 31
December 20231
|
485,553,780
|
97
|
|
Shares
issued
|
3
|
—
|
|
Effect of
share consolidation
|
(44,141,253)
|
—
|
|
At
30 June 2024
|
441,412,530
|
97
|
Note:
1 There
were no movements in the share capital of Mondi plc in
2023.
11
Borrowings
Financing
facilities
Group
liquidity is provided through a range of committed debt facilities.
The principal loan arrangements in place are the
following:
|
€ million
|
Maturity
|
Interest
rate %
|
As
at 30 June 2024
|
As
at 31 December 2023
|
|
Financing
facilities
|
|
|
|
|
|
Syndicated
Revolving Credit Facility
|
June
2028
|
EURIBOR +
margin
|
750
|
750
|
|
€500
million Eurobond
|
April
2024
|
1.500%
|
—
|
500
|
|
€600
million Eurobond
|
April
2026
|
1.625%
|
600
|
600
|
|
€750
million Eurobond
|
April
2028
|
2.375%
|
750
|
750
|
|
€500
million Eurobond
|
May
2032
|
3.750%
|
500
|
—
|
|
Long Term
Facility Agreement
|
December
2026
|
EURIBOR +
margin
|
17
|
20
|
|
Other
|
Various
|
Various
|
4
|
4
|
|
Total
committed facilities
|
|
|
2,621
|
2,624
|
|
Drawn
|
|
|
(1,867)
|
(1,870)
|
|
Total
committed facilities available
|
|
|
754
|
754
|
The
Group’s Eurobonds incur a fixed rate of interest. Swap agreements
are utilised by the Group to raise non-euro-denominated currency to
fund subsidiaries' liquidity needs, thereby exposing the Group to
floating interest rates.
In
April 2024, the Group repaid its €500
million Eurobond at maturity and, in May
2024, issued a new €500 million 8 year Eurobond maturing in
May 2032 at a coupon of 3.750% per
annum. The new Eurobond was issued under the Group’s Guaranteed
Euro Medium Term Note Programme and the proceeds were used for
general corporate purposes.
The €750
million 5-year revolving multi-currency credit facility agreement
(RCF) incorporates key sustainability targets linked to MAP2030,
classifying the facility as a Sustainability Linked Loan. Under the
terms of the agreement, the margin will be adjusted according to
the Group’s performance against specified sustainability
targets.
Short-term
liquidity needs are met by cash and the RCF.
As at
30 June 2024, the Group had no
financial covenants in any of its financing facilities.
The Group
currently has investment grade credit ratings from both Moody’s
Investors Service (Baa1, outlook stable) and Standard & Poor’s
(A-, outlook stable).
|
|
As
at 30 June 2024
|
As
at 31 December 2023
|
|
€ million
|
Current
|
Non-current
|
Total
|
Current
|
Non-current
|
Total
|
|
Secured
|
|
|
|
|
|
|
|
Lease
liabilities
|
23
|
109
|
132
|
21
|
104
|
125
|
|
Total
secured
|
23
|
109
|
132
|
21
|
104
|
125
|
|
Unsecured
|
|
|
|
|
|
|
|
Bonds
|
—
|
1,841
|
1,841
|
500
|
1,345
|
1,845
|
|
Bank loans
and overdrafts
|
38
|
9
|
47
|
38
|
11
|
49
|
|
Total
unsecured
|
38
|
1,850
|
1,888
|
538
|
1,356
|
1,894
|
|
Total
borrowings
|
61
|
1,959
|
2,020
|
559
|
1,460
|
2,019
|
|
Committed
facilities drawn
|
|
|
1,867
|
|
|
1,870
|
|
Uncommitted
facilities drawn
|
|
|
153
|
|
|
149
|
|
|
|
|
|
|
|
|
12
Business
combinations
To
30 June 2024
On
5 February 2024, the Group announced
the completion of the acquisition of Hinton Pulp mill in
Alberta (Canada) from West Fraser
Timber Co. Ltd (West Fraser) for an agreed consideration of
USD 5 million, before working capital
adjustments. The mill has the capacity to produce around 250,000
tonnes of pulp per annum and will provide the Group with access to
local, high-quality fibre from a well-established wood basket as
part of a long-term partnership with West Fraser. The Group intends
to invest in the mill to improve productivity and sustainability
performance and, subject to pre-engineering and permitting, expand
the facility primarily with a new kraft paper machine which will
integrate its paper bag operations in the Americas and support
future growth.
Hinton's revenue for the six months ended 30 June 2024 was €64 million with a loss after
tax of €2 million. Since the date of acquisition, Hinton's revenue of €51 million and profit
after tax of €2 million have been included in the condensed
consolidated income
statement.
Details of
the net assets acquired, as adjusted from book to fair value, are
as follows:
|
€ million
|
Fair
value
|
|
Net
assets acquired
|
|
|
Property,
plant and equipment
|
4
|
|
Inventories
|
15
|
|
Trade and
other receivables
|
17
|
|
Total
assets
|
36
|
|
Trade and
other payables
|
(11)
|
|
Deferred
tax liabilities
|
(4)
|
|
Other
provisions
|
(2)
|
|
Total
liabilities
|
(17)
|
|
|
|
|
Net
assets acquired
|
19
|
|
Gain on
purchase before transaction-related costs
|
(13)
|
|
Net
cash paid per condensed consolidated statement of cash
flows
|
6
|
Transaction
costs of €4 million were charged to other net operating expenses in
the condensed consolidated income statement.
The
acquisition is a purchase of assets that constitutes a business
accounted for under IFRS 3, 'Business Combinations'. The purchase
price allocation resulted in a net gain on purchase of €9 million,
net of transaction-related costs, as the fair value of net assets
acquired was in excess of the consideration paid. The gain on
purchase is attributable to the mill’s loss-making operations at
the time of the transaction and the need for investment to improve
productivity and sustainability performance. The gain was
recognised in other net operating expenses in the condensed
consolidated income statement.
The fair
values of assets acquired and liabilities assumed in business
combinations are level 3 measures in terms of the fair value
measurement hierarchy. Property, plant and equipment has been
measured at fair value using relevant valuation methods accepted
under IFRS 13, 'Fair Value Measurement', with related deferred tax
adjustments. Management has considered the impact of environmental
and climate risks on the estimated fair values of Hinton's property, plant and equipment. These
considerations did not have a material impact. The fair value
accounting of this acquisition is provisional pending final
determination of the fair value of the assets and liabilities
acquired. In particular, the fair values of the assets and
liabilities disclosed above have only been determined provisionally
because the independent valuations have not been finalised. If
necessary, any adjustments to the fair values recognised will be
made within 12 months of the acquisition date.
To
31 December
2023
On
12 January 2023, the Group completed
the acquisition of the Duino mill near Trieste (Italy) from the Burgo Group. Details of this
business combination were disclosed in note 25 of the Group’s
Integrated report and financial statements 2023.
13
Consolidated
cash flow analysis
(a)
Reconciliation
of profit before tax from continuing operations to cash generated
from continuing operations
|
€ million
|
Six
months ended 30 June 2024
|
Six
months ended 30 June 2023
|
|
Profit
before tax from continuing operations
|
296
|
418
|
|
Depreciation
and amortisation
|
210
|
199
|
|
Share-based
payments
|
6
|
5
|
|
Net
pre-tax cash flow effect of current and prior period special
items
|
9
|
20
|
|
Net
finance costs
|
31
|
43
|
|
Net
monetary gain arising from hyperinflationary economies
|
(1)
|
(3)
|
|
Net loss
from joint ventures
|
2
|
2
|
|
Increase/(decrease)
in provisions
|
8
|
(16)
|
|
Decrease
in net retirement benefits
|
(5)
|
(10)
|
|
Movement
in working capital
|
(160)
|
(37)
|
|
(Increase)/decrease
in inventories
|
(50)
|
152
|
|
(Increase)/decrease
in operating receivables
|
(275)
|
19
|
|
Increase/(decrease)
in operating payables
|
165
|
(208)
|
|
Fair value
gains on forestry assets
|
(49)
|
(86)
|
|
Felling
costs
|
47
|
41
|
|
Net
(gain)/loss on disposal of property, plant and equipment
|
(2)
|
1
|
|
Insurance
reimbursements for property damages
|
(11)
|
(17)
|
|
Other
adjustments
|
(9)
|
(6)
|
|
Cash
generated from continuing operations
|
372
|
554
|
(b)
Cash
and cash equivalents
|
€ million
|
As
at 30 June 2024
|
As
at 30 June 2023
|
As
at 31 December 2023
|
|
Cash and
cash equivalents per condensed consolidated statement of financial
position
|
415
|
857
|
1,592
|
|
Bank
overdrafts included in short-term borrowings
|
(4)
|
(20)
|
—
|
|
Cash
and cash equivalents held by continuing operations (see note
13c)
|
411
|
837
|
1,592
|
|
Cash and
cash equivalents classified as assets held for sale
|
—
|
354
|
—
|
|
Cash
and cash equivalents per condensed consolidated statement of cash
flows
|
411
|
1,191
|
1,592
|
The cash
and cash equivalents of €415 million (as at 31 December 2023: €1,592 million) include money
market funds of €216 million
(as at 31 December 2023: €840
million) valued at fair value through profit and loss, with the
remaining balance carried at amortised cost.
The Group
operates in certain countries where the existence of exchange
controls or access to hard currency may restrict the use of certain
cash balances outside of those countries. These restrictions are
not expected to have any material effect on the Group’s ability to
meet its ongoing obligations.
The fair
value of cash and cash equivalents carried at amortised cost
approximate their carrying values presented.
(c)
Movement
in net debt
The
Group’s net debt position is as follows:
|
€ million
|
Cash
and
cash
equivalents
|
Current
financial asset investments1
|
Debt
due within one year2
|
Debt
due
after
one
year
|
Debt-related
derivative financial instruments
|
Total
net
debt
|
|
At 1
January 2024
|
1,592
|
1
|
(559)
|
(1,460)
|
7
|
(419)
|
|
Cash
flow
|
(1,168)
|
—
|
516
|
(496)
|
23
|
(1,125)
|
|
Cash
movement in the period
|
(1,168)
|
—
|
—
|
—
|
—
|
(1,168)
|
|
Proceeds
from issue of Eurobond
|
—
|
—
|
—
|
(496)
|
—
|
(496)
|
|
Repayment
of Eurobond
|
—
|
—
|
500
|
—
|
—
|
500
|
|
Proceeds
from borrowings
|
—
|
—
|
(8)
|
(215)
|
—
|
(223)
|
|
Repayment
of borrowings
|
—
|
—
|
11
|
215
|
—
|
226
|
|
Repayment
of lease liabilities
|
—
|
—
|
13
|
—
|
—
|
13
|
|
Net cash
outflow from debt-related derivative financial
instruments
|
—
|
—
|
—
|
—
|
23
|
23
|
|
Additions
to lease liabilities
|
—
|
—
|
(7)
|
(13)
|
—
|
(20)
|
|
Disposal
of lease liabilities
|
—
|
—
|
—
|
1
|
—
|
1
|
|
Movement
in unamortised loan costs
|
—
|
—
|
—
|
(1)
|
—
|
(1)
|
|
Net
movement in fair value of derivative financial
instruments
|
—
|
—
|
—
|
—
|
(29)
|
(29)
|
|
Reclassification
|
—
|
—
|
(12)
|
12
|
—
|
—
|
|
Currency
movements
|
(13)
|
—
|
5
|
(2)
|
—
|
(10)
|
|
At
30 June 2024
|
411
|
1
|
(57)
|
(1,959)
|
1
|
(1,603)
|
|
€ million
|
Cash
and
cash
equivalents
|
Current
financial asset investments1
|
Debt
due within one year
|
Debt
due
after
one
year
|
Debt-related
derivative financial instruments
|
Total
net
debt
|
|
At 1
January 2023
|
1,061
|
1
|
(96)
|
(1,970)
|
(7)
|
(1,011)
|
|
Cash
flow
|
(91)
|
—
|
27
|
—
|
40
|
(24)
|
|
Cash
movement from continuing operations
|
(235)
|
—
|
—
|
—
|
—
|
(235)
|
|
Proceeds
from borrowings
|
—
|
—
|
(17)
|
—
|
—
|
(17)
|
|
Repayment
of borrowings
|
—
|
—
|
32
|
—
|
—
|
32
|
|
Repayment
of lease liabilities
|
—
|
—
|
11
|
—
|
—
|
11
|
|
Net cash
outflow from debt-related derivative financial
instruments
|
—
|
—
|
—
|
—
|
40
|
40
|
|
Discontinued
operations
|
144
|
—
|
1
|
—
|
—
|
145
|
|
Additions
to lease liabilities
|
—
|
—
|
(7)
|
(11)
|
—
|
(18)
|
|
Disposal
of lease liabilities
|
—
|
—
|
—
|
1
|
—
|
1
|
|
Movement
in unamortised loan costs
|
—
|
—
|
—
|
(1)
|
—
|
(1)
|
|
Net
movement in fair value of derivative financial
instruments
|
—
|
—
|
—
|
—
|
(36)
|
(36)
|
|
Reclassification
|
—
|
—
|
(510)
|
510
|
—
|
—
|
|
Elimination
of assets and liabilities previously classified as held for
sale
|
(34)
|
—
|
(1)
|
(19)
|
—
|
(54)
|
|
Currency
movements
|
(99)
|
—
|
23
|
23
|
—
|
(53)
|
|
At
30 June 2023
|
837
|
1
|
(564)
|
(1,467)
|
(3)
|
(1,196)
|
Notes:
1 Included
in financial instruments in the condensed consolidated statement of
financial position.
2 Excludes
bank overdrafts of €4 million (as at 31 December 2023: €nil), which
are included in cash and cash equivalents (see note 13b)
The Group
incurred interest expense of €52 million in relation to bank
overdrafts, loans and lease liabilities (six months ended 30 June
2023: €57 million). The Group paid €43 million (six months ended 30
June 2023: €42 million)
relating to interest on borrowings and €18 million (six months
ended 30 June 2023: €26 million) relating to forward exchange rates
on derivative contracts. The settlement of debt-related derivatives
shown as cash flow in the table above is recognised as net cash
outflow from debt-related derivative financial instruments in the
condensed consolidated statement of cash flows.
14
Capital
commitments
As at 30
June 2024, capital expenditure contracted for but not recognised as
liabilities is €635 million (as at 31 December 2023:
€634 million).
15
Contingent
liabilities
There have
been no significant changes to the nature of the contingent
liabilities as disclosed in note 30 of the Group’s Integrated
report and financial statements 2023.
16
Fair
value measurement
Assets and
liabilities that are measured at fair value, or where the fair
value of financial instruments has been disclosed in the notes to
the condensed consolidated financial statements, are based on the
following fair value measurement hierarchy:
•
level 1 –
quoted prices (unadjusted) in active markets for identical assets
or liabilities;
•
level 2 –
inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly (that is, as
prices) or indirectly (that is, derived from prices);
and
•
level 3 –
inputs for the asset or liability that are not based on observable
market data (that is, unobservable inputs).
The assets
measured at fair value on level 3 of the fair value measurement
hierarchy are the Group’s forestry assets as set out in note 9 and
certain assets acquired or liabilities assumed in business
combinations as set out in note 12.
As at 30
June 2024, the fair value of level 2 derivative financial assets is
€11 million (as at 31 December 2023: €13 million), whereas the fair
value of level 2 derivative financial liabilities is €13 million
(as at 31 December 2023: €4 million).
Cash and
cash equivalents include money market funds, which are carried at
fair value through profit and loss, with the remaining balance
carried at amortised cost. As at 30 June 2024, the level 1 fair
valued money market funds are valued at €216 million (as at 31
December 2023: €840 million).
The Group
did not measure any financial assets or financial liabilities at
fair value on a non-recurring basis as at 30 June 2024.
There have
been no transfers of assets or liabilities between levels of the
fair value hierarchy during the period.
The fair
values of financial instruments that are not traded in an active
market (for example, over-the-counter derivatives) are determined
using generally accepted valuation techniques. These valuation
techniques maximise the use of observable market data and rely as
little as possible on Group specific estimates.
Specific
valuation methodologies used to value financial instruments
include:
•
the fair
values of foreign exchange contracts are calculated as the present
value of expected future cash flows based on observable yield
curves and exchange rates; and
•
other
techniques, including discounted cash flow analysis, are used to
determine the fair values of other financial
instruments.
Except as
detailed below, the directors consider that the carrying values of
financial assets and financial liabilities recorded at amortised
cost in the condensed consolidated financial statements are
approximately equal to their fair values.
|
|
Carrying
amount
|
Fair
value
|
|
€ million
|
As
at 30 June 2024
|
As
at 31 December 2023
|
As
at 30 June 2024
|
As
at 31 December 2023
|
|
Financial
liabilities
|
|
|
|
|
|
Borrowings
|
2,020
|
2,019
|
1,969
|
1,983
|
17
Related
party transactions
The Group
and its subsidiaries, in the ordinary course of business, enter
into various sale, purchase and service transactions with
associated undertakings in which the Group has a material interest.
The related party transactions entered into by the Group have been
contracted on an arms-length basis. The level of these transactions
is consistent with prior year.
Transactions
between Mondi plc and its subsidiaries, which are related parties,
and transactions between its subsidiaries have been eliminated on
consolidation. There have been no significant changes to the nature
of its related party transactions as disclosed in note 32 of the
Group’s Integrated report and financial statements 2023.
18
Events
occurring after 30 June 2024
Aside from
the interim ordinary dividend declared for the current financial
year (see note 8),
there have been no material reportable events since
30 June 2024.
Alternative
Performance Measures (APMs)
The Group
presents certain measures of financial performance, position or
cash flows in the condensed consolidated financial statements that
are not defined or specified according to IFRS Accounting Standards
in order to provide additional performance-related measures to its
stakeholders. These measures, referred to as Alternative
Performance Measures (APMs), are prepared on a consistent basis for
all periods presented in this report.
By their
nature, the APMs used by the Group are not necessarily uniformly
applied by peer companies and therefore may not be comparable with
similarly defined measures and disclosures applied by other
companies. Such measures should not be viewed in isolation or as a
substitute to the equivalent IFRS Accounting Standards
measure.
Internally,
the Group and its operating segments apply the same APMs in a
consistent manner in planning and reporting on performance to
management, the Executive Committee and the Board. Three of the
Group’s APMs, underlying EBITDA, basic underlying EPS and ROCE,
form part of the executive directors' and senior management's
remuneration targets.
The most
significant APMs used by the Group are described below, together
with a reconciliation to the equivalent IFRS Accounting Standards
measure. The reconciliations are based on Group figures and
represent the continuing operations of the Group, unless otherwise
stated. The reporting segment equivalent APMs are measured in a
consistent manner.
|
APM
description and purpose
|
|
Financial
statement reference
|
Closest
IFRS equivalent measure
|
|
Special
items
|
|
Special
items are generally material, non-recurring items from continuing
operations that exceed €10 million. The Audit Committee regularly
assesses the monetary threshold of €10 million on a net basis and
considers the threshold in the context of both the Group as a whole
and individual operating segment performance.
The Group
separately discloses special items on the face of the condensed
consolidated income statement to assist its stakeholders in
understanding the underlying financial performance achieved by the
Group on a basis that is comparable from year to year. Examples of
special item charges or credits include, but are not limited to,
significant restructuring programmes, impairment of assets or
cash-generating units, profits or losses from the disposal of
businesses, and the settlement of significant litigation or
claims.
Subsequent
adjustments to items previously recognised as special items,
including any related credits received subsequently, continue to be
reflected as special items in future periods even if they do not
exceed the quantitative reporting threshold. Subsequent adjustments
to items, or charges and credits on items that are closely related,
which previously did not qualify for reporting as special items,
continue to be reported in the underlying result even if the
cumulative net charge/credit over the years exceeds the €10 million
quantitative reporting threshold.
|
|
Note
4
|
None
|
|
|
|
|
|
|
Underlying
EBITDA
|
|
Operating
profit before special items, depreciation, amortisation and
impairments not recorded as special items provides a measure of the
cash-generating ability of the Group's continuing operations that
is comparable from year to year.
For the
Uncoated Fine Paper business unit review, the Group has disclosed
underlying EBITDA excluding forestry fair value gain to improve
relative comparability.
|
|
Condensed
consolidated income statement
|
Operating
profit
|
|
|
|
|
|
|
Underlying
EBITDA margin
|
|
Underlying
EBITDA expressed as a percentage of Group revenue (segment revenue
for operating segments) provides a measure of the cash-generating
ability of the Group's continuing operations relative to
revenue.
|
|
|
None
|
|
|
|
|
|
|
APM
calculation:
|
|
|
|
|
€ million,
unless otherwise stated
|
|
Six
months ended 30 June 2024
|
Six
months ended 30 June 2023
|
|
Underlying
EBITDA (see condensed consolidated income statement)
|
|
565
|
680
|
|
Group
revenue (see condensed consolidated income statement)
|
|
3,739
|
3,881
|
|
Underlying
EBITDA margin (%)
|
|
15.1
|
17.5
|
|
|
|
|
|
|
Underlying
operating profit
|
|
Operating
profit before special items provides a measure of operating
performance of the Group's continuing operations that is comparable
from year to year.
|
|
Condensed
consolidated income statement
|
Operating
profit
|
|
|
|
|
|
|
Underlying
profit before tax
|
|
Profit
before tax and special items. Underlying profit before tax provides
a measure of the Group’s continuing operations' profitability
before tax that is comparable from year to year.
|
|
Condensed
consolidated income statement
|
Profit
before tax
|
|
|
|
|
|
|
Effective
tax rate
|
|
Underlying
tax charge expressed as a percentage of underlying profit before
tax.
A measure
of the tax charge of the Group’s continuing operations relative to
its profit before tax expressed on an underlying basis.
|
|
|
None
|
|
|
|
|
|
|
APM
calculation:
|
|
|
|
|
€ million,
unless otherwise stated
|
|
Six
months ended 30 June 2024
|
Six
months ended 30 June 2023
|
|
Tax charge
before special items (see note 6)
|
|
71
|
102
|
|
Underlying
profit before tax (see condensed consolidated income
statement)
|
323
|
439
|
|
Effective
tax rate (%)
|
|
22.0
|
23.2
|
|
|
|
|
|
|
Underlying
earnings (and per share measure)
|
|
Net profit
after tax before special items arising from the Group's continuing
operations that is attributable to shareholders.
Underlying
earnings (and the related per share measure based on the basic,
weighted average number of ordinary shares outstanding) provides a
measure of the continuing operations’ earnings.
|
|
Note
7
|
Profit for
the period attributable to shareholders (and per share
measure)
|
|
|
|
|
|
|
Total
earnings (prior to special items)
|
|
Net profit
after tax before special items arising from the Group's continuing
and discontinued operations that is attributable to
shareholders.
Total
earnings provides a measure of the Group’s earnings.
|
|
Note
7
|
Profit for
the period attributable to shareholders
|
|
|
|
|
|
|
Headline
earnings (and per share measure)
|
|
The
presentation of headline earnings (and the related per share
measure based on the basic, weighted average number of ordinary
shares outstanding) is mandated under the Listings Requirements of
the JSE Limited and is calculated in accordance with Circular
1/2023, ‘Headline Earnings’, as issued by the South African
Institute of Chartered Accountants.
|
|
Note
7
|
Profit for
the period attributable to shareholders (and per share
measure)
|
|
|
|
|
|
|
Capital
employed (and related trailing 12-month average capital
employed)
|
|
Capital
employed comprises total equity and net debt. Trailing 12-month
average capital employed is the average monthly capital employed
over the last 12 months adjusted for spend on major capital
expenditure projects which are not yet in production.
These
measures provide the level of invested capital in the business.
Trailing12-month average capital employed is used in the
calculation of return on capital employed.
|
|
Note
3
|
Total
equity
|
|
|
|
|
|
|
Return
on capital employed (ROCE)
|
|
Trailing
12-month underlying operating profit, including share of
associate's and joint ventures' net profit/(loss), divided by
trailing 12-month average capital employed. ROCE provides a measure
of the efficient and effective use of capital in the business and
is presented on the basis of the Group's continuing operations for
comparability.
|
|
|
None
|
|
|
|
|
|
|
APM
calculation:
|
|
|
|
|
€ million,
unless otherwise stated
|
Six
months ended 30 June 2024
|
Six
months ended 30 June 2023
|
Year
ended 31 December
2023
|
|
Trailing
12-month underlying operating profit
|
664
|
1,176
|
790
|
|
Trailing
12-month underlying net loss from joint ventures
|
(5)
|
(4)
|
(5)
|
|
Trailing
12-month underlying profit from operations and joint
ventures
|
659
|
1,172
|
785
|
|
Trailing
12-month average capital employed of continuing
operations
(see note
3)
|
6,088
|
6,134
|
6,135
|
|
ROCE
(%)
|
10.8
|
19.1
|
12.8
|
|
|
|
|
|
|
Net
debt (and related trailing 12-month average net
debt)
|
|
A measure
comprising short, medium, and long-term interest-bearing borrowings
and the fair value of debt-related derivatives less cash and cash
equivalents, net of overdrafts, and current financial asset
investments. Trailing 12-month average net debt is the average
monthly net debt over the last 12 months.
|
|
Note
13c
|
None
|
|
|
|
|
|
|
Net
debt to underlying EBITDA
|
|
Net debt
divided by trailing 12-month underlying EBITDA. A measure of the
Group’s net indebtedness relative to its cash-generating
ability.
|
|
|
None
|
|
|
|
|
|
|
APM
calculation:
|
|
|
|
|
€ million,
unless otherwise stated
|
Six
months ended 30 June 2024
|
Six
months ended 30 June 2023
|
Year
ended 31 December
2023
|
|
Net debt
(see note 13c)
|
1,603
|
1,196
|
419
|
|
Trailing
12-month underlying EBITDA
|
1,086
|
1,586
|
1,201
|
|
Net
debt to underlying EBITDA (times)
|
1.5
|
0.8
|
0.3
|
|
|
|
|
|
|
Working
capital as a percentage of revenue
|
|
Working
capital, defined as the sum of trade and other receivables and
inventories less trade and other payables, expressed as a
percentage of annualised Group revenue, which is calculated based
on an extrapolation of average monthly year-to-date revenue. A
measure of the Group’s effective use of working capital relative to
revenue.
|
|
|
None
|
|
|
|
|
|
|
APM
calculation:
|
|
|
|
|
€ million,
unless otherwise stated
|
Six
months ended 30 June 2024
|
Six
months ended 30 June 2023
|
Year
ended 31 December
2023
|
|
Inventories
(see condensed consolidated statement of financial
position)
|
1,138
|
1,203
|
1,049
|
|
Trade and
other receivables (see condensed consolidated statement of
financial position)
|
1,552
|
1,367
|
1,254
|
|
Trade and
other payables (see condensed consolidated statement of financial
position)
|
(1,353)
|
(1,247)
|
(1,219)
|
|
Working
capital
|
1,337
|
1,323
|
1,084
|
|
Annualised
Group revenue
|
7,478
|
7,762
|
7,330
|
|
Working
capital as a percentage of revenue
|
17.9
|
17.0
|
14.8
|
Production
statistics
|
|
|
Six
months ended 30 June 2024
|
Six
months ended 30 June 2023
|
|
Continuing
operations
|
|
|
|
|
Containerboard
|
000
tonnes
|
1,171
|
1,178
|
|
Kraft
paper
|
000
tonnes
|
640
|
557
|
|
Uncoated
fine paper
|
000
tonnes
|
489
|
410
|
|
Pulp
|
000
tonnes
|
1,906
|
1,616
|
|
Internal
consumption
|
000
tonnes
|
1,579
|
1,379
|
|
Market
pulp
|
000
tonnes
|
327
|
237
|
|
Corrugated
solutions
|
million
m²
|
935
|
916
|
|
Paper
bags
|
million
units
|
2,792
|
2,837
|
|
Consumer
flexibles
|
million
m²
|
1,006
|
945
|
|
Functional
paper and films
|
million
m²
|
1,637
|
1,407
|
Forward-looking
statements
This
document includes forward-looking statements. All statements other
than statements of historical facts included herein, including,
without limitation, those regarding Mondi’s financial position,
business strategy, market growth and developments, expectations of
growth and profitability and plans and objectives of management for
future operations, are forward-looking statements. Forward-looking
statements are sometimes identified by the use of forward-looking
terminology such as “believe”, “expects”, “may”, “will”, “could”,
“should”, “shall”, “risk”, “intends”, “estimates”, “aims”, “plans”,
“predicts”, “continues”, “assumes”, “positioned” or “anticipates”
or the negative thereof, other variations thereon or comparable
terminology. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of Mondi, or industry
results, to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. Such forward-looking statements and
other statements contained in this document regarding matters that
are not historical facts involve predictions and are based on
numerous assumptions regarding Mondi’s present and future business
strategies and the environment in which Mondi will operate in the
future. These forward-looking statements speak only as of the date
on which they are made.
No
assurance can be given that such future results will be achieved;
various factors could cause actual future results, performance or
events to differ materially from those described in these
statements. Such factors include in particular but without any
limitation: (1) operating factors, such as continued success of
manufacturing activities and the achievement of efficiencies
therein, continued success of product development plans and
targets, changes in the degree of protection created by Mondi’s
patents and other intellectual property rights and the availability
of capital on acceptable terms; (2) industry conditions, such as
strength of product demand, intensity of competition, prevailing
and future global market prices for Mondi’s products and raw
materials and the pricing pressures thereto, financial condition of
the customers, suppliers and the competitors of Mondi and potential
introduction of competing products and technologies by competitors;
and (3) general economic conditions, such as rates of economic
growth in Mondi’s principal geographical markets or fluctuations of
exchange rates and interest rates.
Mondi
expressly disclaims a) any warranty or liability as to accuracy or
completeness of the information provided herein; and b) any
obligation or undertaking to review or confirm analysts’
expectations or estimates or to update any forward-looking
statements to reflect any change in Mondi’s expectations or any
events that occur or circumstances that arise after the date of
making any forward-looking statements, unless required to do so by
the Disclosure Guidance and Transparency Rules, the UK Market Abuse
Regulation or applicable law or any regulatory body applicable to
Mondi, including the JSE Limited, the FCA and the LSE.
Any
reference to future financial performance included in this
announcement has not been reviewed or reported on by the Group’s
auditors.
Editors’
notes
Mondi is a
global leader in packaging and paper, contributing to a better
world by producing products that are sustainable by design. We
employ 22,000 people in more than 30 countries and operate an
integrated business with expertise spanning the entire value chain,
enabling us to offer our customers a broad range of innovative
solutions for consumer and industrial end-use applications.
Sustainability is at the centre of our strategy, with our ambitious
commitments to 2030 focused on circular driven solutions, created
by empowered people, taking action on climate.
In 2023,
Mondi had revenues of €7.3 billion and underlying EBITDA of €1.2
billion. Mondi is listed on the London Stock Exchange in the ESCC
category (MNDI), where the Group is a FTSE100 constituent. It also
has a secondary listing on the JSE Limited (MNP).
mondigroup.com
Sponsor in
South Africa: Merrill Lynch South Africa Proprietary Limited t/a
BofA Securities.