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Mondi PLC on Thursday said it expected organic growth projects to deliver a meaningful earnings boost from 2025 as it reported a decline in profit and revenue for last year. The Weybridge, Surrey-based packaging and paper company said pretax profit dropped 56% to €682 million in 2023 from €1.56 billion in 2022. Revenue declined 18% to €7.33 billion from €8.90 billion, citing softer market demand and the impact of customer destocking. Underlying earnings before interest, tax, depreciation and amortisation contracted 35% to €1.20 billion from €1.85 billion. Return on capital deployed deteriorated to 12.8% in 2023 from 23.7% a year prior. Mondi recommended a final dividend of 46.67 euro cents per share, bringing the total to an unchanged 70.0c. Looking ahead, Chief Executive Officer Andrew King said: ‘We continue to make good progress in delivering our organic growth projects, which remain on track and on budget. We expect these projects to deliver a meaningful EBITDA contribution from 2025.’ He added: ‘We remain well positioned to capitalise as demand improves with our strong operational leverage and organic growth investment projects.’ Mondi shares rose 1.7% to 1,409.00 pence each on Thursday morning in London, while in Johannesburg, they were 2.5% higher at R 337.23 each. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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