Mondi FY revenues dip as average selling prices, volumes decline

Packaging and paper manufacturer Mondi reported a decline in full-year revenue on Thursday amid "challenging" trading conditions.

In the year to the end of December 2019, group revenue fell 3% to £7.3bn amid lower average selling prices and lower sales volumes, primarily due to longer planned maintenance shuts and restructuring initiatives. Pre-tax profit was flat at £1.1bn and underlying earnings before interest, tax, depreciation and amortisation were down 6% at £1.7bn.

Chief executive officer Andrew King said the company had delivered a "robust" performance "against a backdrop of challenging trading conditions".

"A solid operational performance, strong cost control and a good contribution from acquisitions and capital investment projects, partially offset the effects of market pressures in a number of key pulp and paper grades," he said.

"Looking ahead, we remain confident in the structural growth drivers in the packaging sectors in which we operate. Heightened macro-economic uncertainties are likely to continue to affect markets in the short term and, while we are seeing indications of stability in pricing in certain segments, we start the year with lower prices across our key paper grades."