The international packaging and paper group, with operations across more than 30 countries, added that while it is seeing some softness in certain packaging paper grades, it is also seeing firmer prices in the European uncoated fine paper markets following recent industry capacity rationalisation.
“In addition, lower energy and related input costs, the generally positive impact of weaker emerging market currencies and the incremental contribution from recently completed major capital projects are expected to benefit the group’s performance in the near term,” chief executive David Hathorn said.
For the year ended 31 December, 2015 the company made an underlying operating profit, which strips out exceptional and other one-off items, of €957m, compared with €767m a year earlier, on revenue of €6.82bn and €6.40bn respectively. Net profit was €600m, compared with €471m in 2014.
The company, which is listed on both the London and Johannesburg stock exchanges, has had its stock rating reiterated as ‘Buy’ and ‘Outperform’ by various analysts.
Connor Campbell, senior market analyst at www.spreadex.com told Packaging News: “It was all in the packaging as Mondi revealed a €190m increase in underlying operating profits to €957m thanks to a 7% increase in sales to nearly €7bn. It is certainly faring a lot better than its old parent company Anglo American, rising back to around €13 after falling to a year low of £11.38 at the start of February.”