Mondi profits jump but maintenance closures keep revenues flat

The packaging and paper specialist said profit before tax increased by 29% to €632m as costs and impairments fell.

Revenue was just 1% higher to €3.8bn as higher average selling prices in fibre packaging and uncoated fine paper, and contributions from capital projects and acquisitions were largely offset by the impact of planned mill maintenance and lower volumes in industrial bags.

The interim dividend was lifted to 27.28 cents from 21.45 cents.

Maintenance shutdowns would hit underlying earnings before interest, tax, depreciation and amortisation by around €150m, up from €110m last year.

Chief executive Peter Oswald said ongoing macro-economic uncertainties" continue to impact on the trading environment".

"Demand is generally softer across the markets in which we operate, while prices for key paper grades are currently below those of the first half. Furthermore, we expect a significantly lower forestry fair value gain in the second half. Our relentless focus on continuous improvement is expected to lessen the impact of these pressures."

Mondi shares were down 3.35% at 1,743.01 at 0806 BST.