Packaging firm Mondi posted 11% year-on-year growth in underlying EBITDA, to €1.5 billion, in its financial year 2021 driven by higher sales volumes and selling prices amid inflationary cost pressures.
Group revenue grew 16% year on year, to €7.7 billion, while underlying operating profit amounted to €1.1 billion, up 15% year-on-year.
Andrew King, Mondi group chief executive officer, said, “Our vertical integration, the agility of our operations and collaboration with our customers ensured we met surging demand at a time when supply chains were under pressure around the world.”
“We implemented price increases across all our businesses and, against a backdrop of rising commodity input costs, we exhibited good cost control. Our focus on safety and protecting the wellbeing of our people remains our priority.”
The company witnessed volume growth in its corrugated packaging, flexible packaging, and uncoated fine paper businesses
The flexible packaging unit was boosted by growth in retail use, particularly in paper-based shopping, e-commerce bags, and consumer applications, such as food and pet food.
Demand for corrugated packaging remained strong throughout the year, with growth across all end-uses, including e-commerce and FMCG applications.
Mondi added that selling prices were up across the entire business, and most significantly in corrugated packaging.
Input costs increased materially year-on-year, particularly for energy, resins, paper for recycling, and transport.
The company expects energy costs to remain elevated for some time in the future.
Mondi’s pulp and paper mills meet most of its energy needs internally, with biomass sources accounting for around 65% of the fuels used in this process.
The company hopes to make progress in 2020 but warned of continued inflationary pressures on its cost base due to geopolitical and macroeconomic uncertainties.
The company expects to benefit from price increases implemented in 2021 and early 2022, shorter planned maintenance shuts, and the contribution from its capital investment programme.