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Mondi PLC said on Thursday its interim profit more than doubled as the firm grappled with the disposal of its Russian assets, coupled with ‘strong’ inflationary pressures.
The Weybridge, England-based paper and packaging firm lifted its pretax profit to €933 million for six months to June 30 from €354 million in the same period last year.
Revenue increased by 37% to €4.51 billion from €3.28 billion, allowing the underlying earnings before interest, taxes, depreciation and amortisation to surge by 66% to €942 million from €566 million.
The group declared an interim dividend of 21.62 euro cents, up 8% from 20.00 cents.
In the first half, basic earnings per share more than doubled to 148.4 cents from 54.4 cents.
Mondi Chief Executive Andrew King said the interim performance was strong across the group.
‘We achieved strong price realisation while maintaining tight cost control against a backdrop of strong inflationary pressures,’ King said.
Around €1 billion of expansionary projects are either underway, approved or under advanced evaluation, which are expected to generate mid-teen returns when in full operation.
The company said the process to dispose Russian operations was ongoing. Russian assets are now reported as discontinued operations held for sale.
In May, the firm decided to divest its assets in the country due to Russia's invasion of Ukraine.
During the first half, Mondi completed the €615 million sale of its Personal Care Components business to Nitto ahead of schedule.
Going forward, Mondi said pricing remained strong going into the second half, although it anticipates continued inflationary pressures on its cost base and ongoing supply chain challenges.
‘While significant geopolitical and macroeconomic uncertainties remain, we expect a year of good progress,’ it said.
Mondi shares were 5.0% lower at R 311.73 in Johannesburg on Thursday morning, and lost 5.2% at 1,526.00 pence in London.
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