Strong group-wide performance boosts Mondi's revenue

Mondi’s full year group revenue has risen 7%, driven by strong performances across all parts of the business.

For the 2015 calendar year, revenue rose from €6.4bn (£5.1bn) to €6.8bn driven by higher domestic selling prices in the paper businesses and good volume gains in Containerboard, Corrugated Packaging and Consumer Packaging.

Operating profit also rose 24% from €728m to €900m, while profit before tax jumped 29% from €619m to €796m, helped by a number of major capital investment projects.

It recommended a final dividend 37.62 euro cents per share, bringing the total dividend for the year to 52.0 euro cents per share - an increase of 24% on 2014.

Mondi chief executive David Hathorn said the group made “significant progress” across a number of key areas.

“It is very pleasing to see the strong contribution from all our business units, driven by generally higher selling prices, volume growth, good cost control and important contributions from recently completed capital projects.”

He said the focus continues to be on growing the packaging side of the business while investing in its uncoated fine paper operations.

Hathorn also noted major projects from its capital investment programme have contributed around €50m to operating profits, with a further €60 million anticipated in 2016.

“The boards recently approved a €310m investment in a new 300,000 tonne per annum kraft top white machine at our Ruzomberok mill in Slovakia, adding to our strong pipeline of major projects approved and in development, now totalling around €450 million.”

Mondi has also agreed to sell Neusiedler, its wholly owned uncoated fine paper operations in Austria, to its joint venture subsidiary Mondi SCP.

Mondi holds a 51% stake in the joint venture, with ECO-INVEST holding the remaining 49%.

The joint venture will pay €30m in cash, and will assume debt and debt-like liabilities relating to the business, which values the deal at €115m.

It will enable Mondi SCP, which owns and operates the uncoated fine paper mill in Ruzomberok, Slovakia, and Neusiedler to better align and optimise their product portfolio and production capacity.