Packaging giant Mondi reported a ‘strong’ performance across the business in the first half of its financial year, with EBITDA up by 65%, year on year, to €1.2 billion, including its discontinued Russian operations.
Underlying EBITDA from continuing operations amounted to €942 million – 66%, compared to the first half of 2021 – and the underlying EBITDA margin stood at 20.9%.
Revenue amounted to €4.5 billion, registering 37% growth when compared to the same period last year, driven by selling-price increases.
Andrew King, chief executive officer of Mondi Group, said, “Our vertical integration, the agility of our organisation, and strong collaboration with our customers ensured we delivered at a time when supply chains continued to be disrupted around the world.
“We achieved strong price realisation while maintaining tight cost control against a backdrop of strong inflationary pressures.”
Input costs increased significantly during this period, compared to the first half of 2021, due to higher energy, wood, resin, transport, chemical and paper costs.
Energy costs witnessed a sharp increase, in line with soaring European gas and electricity prices.
The company was able to mitigate the impact of the surge in fuel costs, as its pulp and paper mills generated most of its energy needs internally, with biomass sources accounting for around 80% of the fuels used in this process.
Mondi completed the sale of its personal-care component business, for an enterprise value of €615 million in the first half.
The move will allow the company to focus more on its strategic priority: to grow in sustainable packaging.
The company added that it continued to make progress on its sustainability road map, the Mondi Action Plan 2030.
The company expects a ‘year of good progress’ amid geopolitical and macroeconomic uncertainties.
King stated, “Looking forward, pricing remains strong, going into the second half, although we do anticipate continued inflationary pressures on our cost base and ongoing supply chain challenges.
“Mondi remains well placed to deliver sustainably into the future, underpinned by our integrated cost-advantaged asset base, culture of continuous improvement, portfolio of sustainable packaging solutions, and the strategic flexibility offered by our strong cash generation and financial position,” King added.