Mondi
plc
(Incorporated
in England and Wales)
(Registered
number: 6209386)
LEI:
213800LOZA69QFDC9N34
LSE share
code: MNDI
ISIN:
GB00BMWC6P49
JSE share
code: MNP
20 February 2025
Full
year results for the year ended 31 December
2024
Mondi, a
global leader in the production of sustainable packaging and paper,
today announces its results for the 12 months to
31 December
2024.
Highlights
•
Resilient
performance in line with our expectations
•
Underlying
EBITDA of €1,049 million,
including €7 million forestry fair value gain (2023:
€1,201 million
including €128 million forestry fair value gain)
•
Delivering
on our growth strategy
•
Started up
five major capacity expansion projects – on time and within budget
– including the new paper machine at Steti (Czech Republic) that commenced operations
ahead of plan in December
2024
•
Completed
the acquisition of Hinton pulp
mill (Canada)
•
Agreed
acquisition of Schumacher’s Western Europe Packaging Assets – on
track to complete in H1 2025
•
Supporting
shareholder returns
•
€1.60 per
share special dividend paid in February
2024, returning net proceeds from sale of the Group’s
Russian assets
•
Recommended
total ordinary dividend of 70.0 euro
cents per share – in line with 2023
Financial
summary
|
€ million,
unless otherwise stated
|
Year
ended 31 December
2024
|
Year
ended 31 December
2023
|
Change
%
|
Six
months ended 31 December
2024 (H2 2024)
|
Six
months ended 30 June 2024 (H1 2024)
|
|
From
continuing operations
|
|
|
|
|
|
|
Group
revenue
|
7,416
|
7,330
|
1
|
3,677
|
3,739
|
|
Underlying
EBITDA1
|
1,049
|
1,201
|
(13)
|
484
|
565
|
|
Forestry
fair value gain / (loss)
|
7
|
128
|
|
(42)
|
49
|
|
Underlying
EBITDA excluding forestry fair value gain1
|
1,042
|
1,073
|
|
526
|
516
|
|
Underlying
EBITDA margin1
|
14.1%
|
16.4%
|
|
13.2%
|
15.1%
|
|
|
|
|
|
|
|
|
Profit
before tax
|
378
|
682
|
(45)
|
|
|
|
|
|
|
|
|
|
|
Basic
underlying earnings per share (euro cents)1
|
82.7
|
107.8
|
(23)
|
|
|
|
Basic
earnings per share (euro cents)
|
49.1
|
103.5
|
(53)
|
|
|
|
|
|
|
|
|
|
|
Total
ordinary dividend per share (euro cents)
|
70.0
|
70.0
|
—
|
|
|
|
Special
dividend per share (euro cents)
|
160.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
generated from operations
|
970
|
1,312
|
(26)
|
|
|
|
Net debt to
underlying EBITDA (times)1
|
1.7
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
Return on
capital employed (ROCE)1
|
9.6%
|
12.8%
|
|
|
|
Note:
1 The
Group presents certain measures that are not defined or specified
according to International Financial Reporting Standards. Refer to
the Alternative Performance Measures (APMs) section at the end of
this document for further detail.
Andrew King, Mondi Group Chief Executive Officer,
commented:
“Mondi
demonstrated resilience through the year in the face of ongoing
difficult trading conditions, characterised by soft demand and a
challenging pricing environment. This resilience highlights the
strength of our cost-competitive, strategically located integrated
assets and our great people. Furthermore, our ability to adapt with
agility and flexibility to market uncertainties, combined with our
unwavering focus on product quality, reliability and innovation in
offering a diverse portfolio of sustainable packaging and paper
solutions, has been central to delivering value to our
stakeholders.
“In
2024 Mondi successfully started up five major capacity expansion
projects on time and within budget building a strong platform for
growth. The largest of these, the new paper machine at Steti
(Czech Republic), commenced
operations ahead of schedule in December. We are very appreciative
of the commitment of our colleagues who have worked tirelessly over
the last few years to deliver these projects. Our focus now turns
to executing our operational and commercial strategy and leveraging
our expanded product offering.
“Disciplined
capital allocation to deliver value accretive growth remains a
strategic priority and, alongside our investment in organic growth
opportunities, we were pleased to announce the acquisition of the
Western Europe Packaging Assets of Schumacher Packaging, which will
expand our geographic reach and deliver integration benefits in our
Corrugated Packaging business.
"Reflecting
the importance of shareholder returns and our continued confidence
in the future of the business, the Board has recommended a total
ordinary dividend for 2024 in line with last year, at 70.0 euro cents per share.
"As we
move into 2025, while significant macroeconomic and geopolitical
uncertainties remain, we are currently seeing improving order books
across our packaging businesses and are implementing price
increases across our range of packaging paper grades. With our
culture of continuous improvement, we are focused on managing costs
and driving productivity, alongside ramping up our new capacity
expansion projects.
“The
demand for sustainable products is providing many opportunities for
Mondi and is a key driver of our growth. Our investments over the
last few years, enhancing our unique packaging and paper platform
and product offering for our customers, will support this
growth.”
Enquiries
Investors/analysts:
Fiona Lawrence
+44 742 587
8683
Mondi
Group: Head of Investor Relations
Media:
Chris Gurney +44
799 004 3764
Mondi
Group: Head of Corporate Communication
Richard Mountain +44
790 968 4466
FTI
Consulting
Results
presentation details
A webinar
will be held today at 09:00 (GMT), 10:00 (CET), 11:00
(SAST).
Event
registration link:
https://storm-virtual-uk.zoom.us/webinar/register/WN_NnKIKisrTvW7KFhK6CXLBA
Once
registered, you will receive a confirmation email from ‘MONDI
Events’ with the webinar link and ID.
A replay
will be available on our website within a couple hours after the
end of the live results presentation at:
https://www.mondigroup.com/investors/results-reports-and-presentations/
For any
queries, please email
ir@mondigroup.com
Delivering
on our strategy
Group
performance review
Mondi
demonstrated resilience during the year delivering an underlying
EBITDA of €1,049 million,
achieved against a backdrop of softness in demand and a challenging
pricing environment. This performance highlights the strength of
our cost-competitive, strategically located integrated assets and
our great people. Furthermore, our ability to adapt with agility
and flexibility to market uncertainties, combined with our
unwavering focus on product quality, reliability and innovation in
offering a diverse portfolio of sustainable packaging and paper
solutions, has been central to delivering value to our
stakeholders.
2024
started with some encouraging signs of recovery, with restocking
and price increases across all our paper grades combined with lower
input costs. As the year progressed the market recovery faltered
with many of our markets experiencing a lacklustre demand
environment resulting in prices first stabilising and then
declining into the end of the year.
Underlying
EBITDA of €1,049 million
was 13% below last year primarily due to the significantly lower
forestry fair value gain in 2024 of €7 million and a €32 million
one-off currency loss recognised in the first half of 2024 from the
devaluation of the Egyptian pound (2023: €1,201 million,
forestry fair value gain of €128 million). Volume growth and lower
wood, energy and chemical costs offset lower average prices and
inflationary increases in operating costs.
Corrugated
Packaging delivered an improved performance in the second half of
the year when compared to the first half of the year. Margin
expansion and an improvement in underlying EBITDA in the second
half were driven by higher average selling prices which more than
offset lower volumes as a result of a higher number of scheduled
mill maintenance shuts compared to the first half. Excluding the
one-off currency loss in the first half, Flexible Packaging's
underlying EBITDA was down in the second half as higher average
selling prices through the second half were offset by lower volumes
and higher fixed costs from scheduled mill maintenance shuts. After
a strong start to the year, Uncoated Fine Paper had a weaker second
half of the year due to a forestry fair value loss, lower prices
and scheduled mill maintenance shut impacts.
Basic
underlying earnings per share were 82.7
euro cents (2023: 107.8 euro
cents) reflecting lower profitability.
Special
item pre-tax charges in the year were €150 million
which included €110 million of closure costs at the Stambolijski
kraft paper mill in Bulgaria.
Over the
last three years Mondi has undertaken a meaningful capital
expenditure programme across both corrugated and flexible packaging
mills and converting plants investing €1.2 billion in total to
expand capacity, increase cost competitiveness and improve our
environmental footprint. By the end of 2024 80% of the investment
had been completed – on time and within budget. Five of the major
capacity expansion projects, including the new paper machine at
Steti (Czech Republic) which
commenced operations in December
2024, are now operational. Duino (Italy) remains on track to complete in the
first half of 2025. Our focus turns to executing our operational
and commercial strategy ensuring all these projects ramp up
capacity efficiently to maximise value from our investments and
deliver mid-teen returns through cycle.
Return on
capital employed was 9.6% (2023: 12.8%), reflecting the ongoing
challenging trading conditions, the significantly lower forestry
fair value gain and a one-off currency loss from the devaluation of
the Egyptian pound.
Maintaining
a strong and flexible balance sheet, reflected in an investment
grade credit rating, coupled with strong cash generation, enables
the Group to continue investing through the cycle alongside paying
dividends to shareholders. Cash generated from operations was
€970 million,
a reduction on the prior year (2023: €1,312 million)
due to working capital movements. Net debt to underlying EBITDA at
31 December 2024 was 1.7 times
(31 December
2023: 0.3 times) as the business continued to invest in its
meaningful capital expenditure programme. We are on track to
complete the acquisition of the Western Europe Packaging Assets of
Schumacher Packaging, for an enterprise value of €634 million, in
the first half of 2025, which will increase leverage in the short
term.
The Board
has recommended paying a total ordinary dividend for 2024 in line
with last year, at 70.0 euro cents
per share, reflecting our continued confidence in the future of our
business.
Delivering
value accretive growth, sustainably
Mondi aims
to deliver value accretive growth for all our stakeholders by
making packaging and paper solutions that are sustainable by
design. We leverage our integrated business model to maintain our
market leading positions, meet evolving customer preferences and
contribute towards the transition to a circular economy.
In 2024
Mondi delivered further progress across each of its four strategic
pillars: drive performance along the value chain, invest in quality
assets, partner with our customers, and empower our people.
Sustainability is core to Mondi’s strategy, and we have continued
to make progress against our commitments through our Mondi Action
Plan 2030 (MAP2030) sustainability framework.
Drive
performance along the value chain
By
implementing continuous improvement initiatives to optimise
productivity, enhance our efficiency and eliminate waste across our
operations, we gain considerable competitive advantage.
During 2024
we delivered improvements across the value chain to reduce input
costs, largely from procurement initiatives, increase energy
efficiency and further enhance product quality. The completion of a
number of significant capital expenditure projects during the year
will further improve productivity and efficiency.
Our focus
on minimising the environmental impacts of our operations is
demonstrated by our target to reduce waste to landfill per tonne of
production by 30% by 2030, against a 2020 baseline. In 2024 we
decreased our waste to landfill per tonne of production by 4%
which, when compared to the 2020 baseline, is a reduction of 46%.
We undertake projects to keep materials in circulation by recycling
and reusing waste as secondary raw materials with this year's
improvement mainly from our mills in Richards Bay (South Africa), Kuopio (Finland) and Dynas (Sweden).
Investing
in quality assets
We invest
in quality assets through the cycle. Our investments ensure we have
capacity in structurally growing markets and a broad range of
products to meet the increasing demand for sustainable packaging
from our customers.
Over the
last three years we have invested €1.2 billion to increase capacity
in both Corrugated Packaging and Flexible Packaging. When fully
ramped up, these projects will add more than 500,000 tonnes of
additional virgin and recycled containerboard capacity (Swiecie,
Kuopio and Duino) and 210,000 tonnes of kraft paper capacity
(Steti). We also expanded our converting capacity, primarily
through major box plant expansions at Warsaw and Simet (both Poland) and projects across Flexible
Packaging. These include expanding our market-leading pet food
packaging converting capability and a new extrusion line at Mondi
Coating Steti (Czech Republic) to
support the growth of food and non-food contact packaging. With
this investment and build phase largely complete, we are now
focused on executing our operational and commercial strategy to
ensure these capacity expansion projects ramp up efficiently to
maximise value from our investments and deliver mid-teen returns
through cycle.
We also
invest in our mills and plants to drive operating efficiency,
increase energy self-sufficiency, reduce environmental impacts and
maintain a competitive advantage. In 2024 we continued to make
progress towards reducing our greenhouse gas emissions. Compared to
our target of a 46% reduction in Scope 1 and 2 emissions by 2030
against our 2019 baseline, we achieved an 11% reduction compared to
2023 which, when compared to our 2019 baseline, is a reduction of
31%. Contributing to this is our continued focus on switching fuel
mix towards renewable energy, including using biomass-based energy
in our mills. In 2024, 79% of our energy was from renewables (2023:
75%). Further reductions will follow at our Richards Bay mill
(South Africa), where we are
replacing the coal-fired boilers with a biomass boiler, removing
our reliance on externally procured energy, and at our Dynas mill
(Sweden), where we are replacing
our existing boiler with a new energy-efficient boiler. These
energy investments reduce both costs and emissions, enabling us to
offer our customers products with a lower carbon footprint,
supporting their sustainability journey.
In
February 2024 we completed the
acquisition of the Hinton Pulp mill (Canada) and have made good
progress developing team excellence and improving its productivity,
sustainability performance and quality parameters for high-quality
pulp suitable for kraft paper. Feasibility studies for a new sack
kraft paper machine at the mill are ongoing in line with our
intention to fully integrate our American paper bags
business.
In
October 2024 we reached an agreement
to acquire the Western Europe Packaging Assets of Schumacher
Packaging for an enterprise value of €634 million. The acquisition,
due to complete in the first half of 2025, complements Mondi’s
Corrugated Packaging operations in Europe. It includes two state-of-the-art
mega-box plants in Germany and
secures significant capacity for Mondi to continue to meet growing
demand for sustainable packaging, particularly in eCommerce
markets.
We continue
to look at further opportunities for organic and inorganic growth
investment across our packaging portfolio and to improve operating
efficiency across all our operations to ensure we are well
positioned to benefit from structural growth in our markets and
meet the demands of our customers for sustainable packaging and
paper.
Partner
with customers
We believe
that the global transition to sustainable packaging offers an
important growth opportunity for Mondi. We innovate in partnership
with our customers to create a unique range of fibre and high-end
sustainable plastic packaging products that are fit for a future
circular economy and support our customers’ sustainability
journeys.
Complementing
our corrugated solutions ‘Think Box’ innovation hubs, we recently
opened ‘FlexStudios’ at Steinfeld (Germany) to help us co-create with our
customers a range of new flexible packaging solutions. Working in
collaboration with Amazon, we launched a fully recyclable,
paper-based padded mailer this year and, reflecting the strength of
our innovative ideas and technologies, we received ten 2025
WorldStar Packaging Awards.
We are
focused on providing our customers with sustainable low-carbon
packaging solutions that support their climate targets and keep
materials in circulation. In Europe, our growth plans are supported by
legislation that is increasingly driving the move towards more
sustainable packaging products, including the Packaging and
Packaging Waste Regulation. We continue to improve our data
collection and analytics capabilities to enable us to support our
customers with product-related data to manage their Scope 3
emissions, as well as maintaining traceability of our fibre
sources.
We have
increased the proportion of Mondi revenue from reusable, recyclable
or compostable products to 87% (2023: 85%). In 2021, as part of
MAP2030, we set a target of 100% of packaging and paper revenue to
be reusable, recyclable or compostable by 2025. Corrugated
Packaging and Uncoated Fine Paper are fully recyclable so our focus
is on Flexible Packaging where we are making good progress. In
2024, we had a sustainable alternative in place, or identified and
in development, for 97% of our Flexible Packaging revenue. With
customer adoption rates slower than expected due to a number of
factors including the weak macroeconomic environment, we recognise
that achieving 100% in the coming year is unlikely. As we reach the
midpoint of MAP2030 and with the expansion of our global footprint,
we will be reviewing, and where relevant, updating our MAP2030
targets.
Empower
our people
We are
focused on creating an inspiring, inclusive and safe workplace that
empowers our teams and enables leaders to take accountability for
attracting, developing, and retaining talent to foster innovation
and growth. We engage with colleagues throughout Mondi and take
action based on their opinions and feedback. Over the past year, we
implemented local actions across the Group to address points raised
in the 2023 Employee Survey. On a Group level we have been looking
at how we can promote psychological safety and reinforce a culture
of listening and caring. As part of this, we conducted a pulse
survey on speaking up in 2024, which had a 78% participation rate.
This high level of engagement provides us with a representative
sample and enables us to take meaningful action across the
organisation.
Ensuring
the safety of our colleagues remains our top priority and although
we saw a slight increase in our Total Recordable Case Rate (TRCR)
this year to 0.68 (2023: 0.64) we are still recognised as a leader
in our industry. We did however regrettably experience a fatality
of an employee at our Merebank mill (South Africa), and three people suffered
serious finger injuries at our other operations. We are resolute in
our commitment to investigating every incident thoroughly.
Procedures and practices are rigorously revised to prevent any
recurrence and ensure everyone returns home safely at the end of
each day.
Returns
focused capital allocation
Our
disciplined capital allocation policy gives us the flexibility to
invest through the economic cycle to drive long-term growth and to
deliver attractive returns, while supporting the ordinary dividend.
Cash generated from operations was €970 million
in 2024 and we ended the year in a robust financial position
demonstrated by a leverage ratio of 1.7 times net debt to
underlying EBITDA.
While 2024
was another year of navigating challenging markets, the Board has
recommended a full year ordinary dividend of 70.0 euro cents per share
reflecting its continued confidence in the future of the
business.
Following
the sale of the Group’s Russian assets at the end of 2023, and on
obtaining shareholder approval, Mondi returned the net proceeds
received of €769 million to shareholders as a €1.60 per share
special dividend in February 2024.
The special dividend was accompanied by a share consolidation,
whereby shareholders received 10 new ordinary shares for every 11
existing ordinary shares held.
Mondi sees
excellent growth and return opportunities from investing in its
packaging verticals of Corrugated Packaging and Flexible Packaging
through both organic growth and acquisitions, while continuing to
optimise its well-located and competitive Uncoated Fine Paper
operations. Geographically, the focus for growth in Corrugated
Packaging is in leveraging our leading positions and vertical
integration strengths in Europe
and adjacent markets. In Flexible Packaging we will continue to
seek opportunities to develop our leading global franchise in kraft
paper and paper bags, while focusing our consumer flexibles
business on serving the more developed markets of Europe and North
America.
Business
unit review
Corrugated
Packaging
Mondi is a
leading producer of corrugated packaging with a cost-competitive
asset base and strong customer offering focused on quality,
reliability and service. We are the leading virgin containerboard
producer in Europe and the largest
containerboard producer in emerging Europe. Our virgin containerboard is a
high-quality product with excellent properties for specialised
end-use applications, ideal to meet our customers' needs around the
globe.
We are also
a leading corrugated solutions producer across central and emerging
Europe. We leverage our integrated
production network and partner with our customers to create fully
recyclable corrugated boxes and packaging.
|
€ million
and percentage
|
Year
ended 31 December
2024
|
Year
ended 31 December
2023
|
Change
%
|
Six
months ended 31 December
2024 (H2 2024)
|
Six
months ended 30 June 2024 (H1 2024)
|
|
Segment
revenue
|
2,251
|
2,280
|
(1)
|
1,148
|
1,103
|
|
Underlying
EBITDA
|
328
|
310
|
6
|
185
|
143
|
|
Underlying
EBITDA margin (%)
|
14.6%
|
13.6%
|
|
16.1%
|
13.0%
|
|
Capital
employed
|
2,609
|
2,318
|
|
|
|
|
ROCE
(%)
|
7.2%
|
7.7%
|
|
|
|
Corrugated
Packaging delivered an improved performance compared to 2023 with
underlying EBITDA of €328 million
and margin of 14.6% (2023: €310 million,
13.6%). The business exhibited good cost control, achieving a
reduction in input costs which more than offset inflationary cost
pressures. Performance in the second half of the year was stronger
when compared to the first half mainly due to higher average
selling prices.
In
Containerboard, our sales volumes were broadly flat compared to the
prior year as the business continued to deliver its broad range of
high-quality paper grades to customers. We achieved selling price
increases through the year before some modest reductions during the
last quarter resulting in broadly similar average selling prices
for the year compared to the prior year. We are currently
implementing containerboard price increases.
In
Corrugated Solutions, box volumes were broadly flat but improved
over the year, with higher volumes in the second half compared to
the first half supported by the growing demand for sustainable
packaging solutions used in eCommerce and other consumer end-use
applications.
The
majority of our major capacity expansion projects have started up
and are ramping up capacity. In Containerboard, this includes the
€125 million modernisation investment at our Kuopio mill
(Finland) which is increasing
semi-chemical fluting capacity by 55,000 tonnes while enhancing
efficiency and improving environmental performance at the mill. In
addition, our €95 million debottlenecking project at Swiecie mill
(Poland) is increasing kraftliner
capacity by 55,000 tonnes. In Corrugated Solutions, completed
investments include our Warsaw and
Simet plant expansions in Poland,
transforming these sites into state-of-the-art corrugated packaging
facilities tailored to serve the specialised needs of our customers
in Poland and beyond.
We continue
to make good progress with our €200 million investment at our Duino
mill (Italy) to convert the
existing paper machine into a high-quality, cost-competitive
recycled containerboard machine with an annual capacity of 420,000
tonnes. Start-up of the machine is expected in the first half of
2025.
Flexible
Packaging
We are a
global flexible packaging producer with a unique portfolio of
solutions. We primarily produce kraft paper which is converted into
paper bags or used for specialist consumer or industrial
applications. As the global leader in kraft paper and paper bag
production, and together with our high level of integration, our
customers come to us for scale, security of supply and global
reach.
We are also
a leading producer of high-quality, flexible plastic-based
packaging for consumer end-uses in Europe. Furthermore, we have broad coating
capabilities which add barriers to create functional paper
solutions that protect the goods inside while continuing to be
recyclable in paper waste streams.
|
€ million
and percentage
|
Year
ended 31 December
2024
|
Year
ended 31 December
2023
|
Change
%
|
Six
months ended 31 December
2024 (H2 2024)
|
Six
months ended 30 June 2024 (H1 2024)
|
|
Segment
revenue
|
3,964
|
3,866
|
3
|
1,940
|
2,024
|
|
Underlying
EBITDA
|
558
|
637
|
(12)
|
282
|
276
|
|
Underlying
EBITDA margin (%)
|
14.1%
|
16.5%
|
|
14.5%
|
13.6%
|
|
Capital
employed
|
3,418
|
3,167
|
|
|
|
|
ROCE
(%)
|
11.5%
|
14.4%
|
|
|
|
Flexible
Packaging's underlying EBITDA was €558 million
for the year with margin of 14.1% (2023: €637 million,
16.5%) as higher sales volumes and reduced input costs were offset
by lower average selling prices and inflationary cost pressures. A
€32 million one-off currency loss from the devaluation of the
Egyptian pound, as previously reported, was also recognised in the
first half of the year. Excluding this one-off loss, Flexible
Packaging's underlying EBITDA was down in the second half as higher
average selling prices through the second half were offset by lower
volumes and higher fixed costs from scheduled mill maintenance
shuts.
In Kraft
Paper, improvements in market demand, supported by the drive for
more sustainable solutions, led to higher sales volumes compared to
2023. While kraft paper selling prices increased during the first
half and into the second half of the year, average prices for the
year remained below the prior year's averages. In 2025, kraft paper
has seen some early signs of improving demand with order books
tightening, supporting price increase announcements.
Paper Bags
increased sales volumes by 3% compared to the prior year. This was
supported by the growing demand for traditional building material
and cement applications across our main emerging markets served, as
well as increasing demand for eCommerce solutions as our customers
transition from plastic mailers to our paper-based MailerBAGs.
Input costs were lower compared to the prior year primarily due to
lower average kraft paper prices. This mitigated the impact of
lower paper bag selling prices.
Consumer
Flexibles and Functional Paper and Films delivered resilient
performances with good margins and higher sales volumes compared to
2023, continuing to provide customers with innovative and
sustainable packaging solutions.
During the
year, we made good progress on our major capacity expansion
projects. Our €400 million investment in a new 210,000 tonne per
annum kraft paper machine and pulp mill upgrade at our Steti mill
(Czech Republic) commenced
operations in December 2024. We also
have a number of investments across our converting plant network
including expanding and upgrading the global reach of our paper bag
network, starting up a new extrusion line at Steti and investments
to consolidate our leading position in European pet food
packaging.
In
February 2024 we completed the
acquisition of the Hinton Pulp mill (Canada) and have made good
progress developing team excellence and improving its productivity,
sustainability performance and quality parameters for high-quality
pulp suitable for kraft paper. Feasibility studies for a new sack
kraft paper machine at the mill are ongoing in line with our
intention to fully integrate our American paper bags
business.
Uncoated
Fine Paper
Our
Uncoated Fine Paper business produces a wide range of home, office,
converting and professional printing papers at our mills in central
Europe and South Africa. We have strong customer
relationships, leveraging our leading positions in these regions.
We also produce and sell market pulp to customers around the
world.
|
€ million
and percentage
|
Year
ended 31 December
2024
|
Year
ended 31 December
2023
|
Change
%
|
Six
months ended 31 December
2024 (H2 2024)
|
Six
months ended 30 June 2024 (H1 2024)
|
|
Segment
revenue
|
1,317
|
1,292
|
2
|
648
|
669
|
|
Underlying
EBITDA
|
198
|
289
|
(31)
|
32
|
166
|
|
Forestry
fair value gain / (loss)
|
7
|
128
|
|
(42)
|
49
|
|
Underlying
EBITDA excluding forestry fair value gain
|
191
|
161
|
|
74
|
117
|
|
Underlying
EBITDA margin (%)
|
15.0%
|
22.4%
|
|
4.9%
|
24.8%
|
|
Capital
employed
|
1,133
|
1,095
|
|
|
|
|
ROCE
(%)
|
11.1%
|
20.6%
|
|
|
|
In Uncoated
Fine Paper, underlying EBITDA of €198 million
and margin of 15.0% were below last year due to the significantly
lower forestry fair value gain in 2024 of €7 million
(2023: Underlying EBITDA of €289 million, margin of 22.4% and
forestry fair value gain of €128 million).
Excluding the impact of the significantly lower forestry fair value
gain, the business delivered an improved performance when compared
to the prior year driven by higher sales volumes and reduced input
costs despite lower average selling prices.
In
Europe, sales volume increases
were supported by a recovery in market demand during the year,
market share gains and restocking effects in the first half of the
year which abated in the second half. In South Africa, sales volumes were modestly down
on the prior year due to weaker domestic demand.
Uncoated
fine paper selling prices increased in the first half of the year
however these largely reversed in the second half and ended the
year below 2024 average prices.
Average
market pulp prices were higher than the prior year. These increased
sharply during the first half of the year before decreasing over
the course of the second half, ending the year below average 2024
price levels.
The
forestry fair value gain of €7 million
in the year (2023: €128 million)
comprised a €49 million gain in the first half which largely
reversed in the second half (loss of €42 million) as a result of
wood price decreases in South
Africa.
Finance
review
In
October 2024 we reached an agreement
to acquire the Western Europe Packaging Assets of Schumacher
Packaging with completion expected in the first half of 2025. All
2025 guidance provided below excludes this acquisition.
Group
performance
Group
revenue of €7,416 million was up on the prior year with higher
sales volumes despite lower average selling prices (2023:
€7,330 million).
Underlying EBITDA was lower than the prior year at €1,049 million
(2023: €1,201 million)
due to the significantly lower forestry fair value gain and a
one-off currency loss from the devaluation of the Egyptian pound
recorded in the period. The Group's underlying EBITDA margin was
14.1% (2023: 16.4%).
In 2024,
input costs were lower than the prior year following price declines
across most input cost categories in 2023, with the largest
benefits achieved from lower wood costs in central Europe as well as energy and chemical costs.
Paper for recycling costs were higher due to price increases during
the first half of 2024 which largely reversed over the second half
of the year. As we enter 2025, input costs are broadly stable and
similar to average 2024 levels.
Total
maintenance costs were higher in the year mainly as a result of the
inclusion of the Hinton Pulp mill (Canada) that was acquired in
February 2024. In 2025, we expect a
similar phasing of planned maintenance shuts as in 2024 with the
majority to be undertaken in the second half of the year. Personnel
costs were also higher, driven by the inclusion of Hinton's employee costs following the
acquisition and inflationary cost pressures most notably from the
hyperinflationary environment in Turkiye. We remain focused on cost
control, driving efficiency improvements and taking decisive
restructuring actions where necessary. In regard to the latter, we
closed three production sites in the year and transferred volumes
to other sites to ensure continuity of supply to our customers.
Other net operating expenses were negatively impacted by the
significantly lower forestry fair value gain and one-off currency
loss as outlined above, together with lower income received from
green energy sales and disposal of emissions credits. Comparability
was also impacted by income received in the prior year from an
insurance claim.
Depreciation,
amortisation and impairment underlying charges were higher at €443
million (2023: €411 million)
as a result of starting up a number of capital investment projects
in the year. These are expected to be €450-475 million in
2025.
Net finance
costs of €70 million were in line with the prior year (2023: €73
million). In 2025, we expect net finance costs of around €90
million due to a higher average net debt balance.
The
underlying tax charge for the year was €117 million, giving an
effective tax rate of 22.2% (2023: €167 million, 23.6%). In 2025,
we expect our effective tax rate to be around 23%.
A special
item pre-tax charge of €150 million
was recognised in the year. This included, as previously reported,
closure costs at the Stambolijski kraft paper mill in Bulgaria which totalled €110 million and
primarily related to a non-cash asset impairment charge of
€73 million.
The remaining costs comprised €22 million from closing two paper
bag plants during the year, as well as €18 million of
transaction-related costs.
Basic
underlying earnings per share were 82.7
euro cents (2023: 107.8 euro
cents) reflecting the lower underlying earnings and the effect of
the share consolidation that accompanied the special dividend paid
in February 2024. After taking
special items into account, basic earnings per share were
49.1 euro cents (2023: 103.5 euro cents, special item pre-tax charge of
€27 million).
Cash
flow
Cash
generated from operations was €970 million, lower than the prior
year (2023: €1,312 million) as a result of a working capital cash
outflow in the year of €108 million compared to an inflow in 2023
of €229 million, impacted in part by an increase in inventory
levels following the start-up of our major capacity expansion
projects.
Capital
expenditure cash payments were €933 million
(2023: €830 million)
as we continued to invest in our meaningful capital expenditure
programme alongside investing to improve efficiency, reduce
environmental impacts and increase energy self-sufficiency. In 2025
we expect capital expenditure to be €750-850 million which, in
addition to regular stay in business capital expenditure, includes
the final payments associated with our €1.2 billion capital
expenditure programme, and the ongoing investments to replace the
boilers in both Richards Bay (South
Africa) and Dynas (Sweden).
Tax paid
was €120 million (2023: €178 million) and interest paid including
derivative interest was €79 million (2023: €103
million).
The Group
returned €1,081 million
of dividends to shareholders during the year. This comprised a
€1.60 per share special dividend payment in February 2024 totalling €769 million
from the disposal of the Group´s Russian operations in 2023. In
addition, ordinary dividends totalling 70.0
euro cents per share were paid to shareholders representing
a distribution of €312 million.
Liquidity,
treasury and borrowings
Net debt at
31 December
2024 was €1,732 million
with net debt to underlying EBITDA at 1.7 times
(31 December
2023: €419 million,
0.3 times), the increase in leverage reflecting the ongoing
investment into the business and the special dividend payment to
shareholders in February
2024.
In
April 2024, the Group repaid a €500
million Eurobond on maturity and in May
2024, issued a 3.75% €500 million Eurobond with an 8-year
tenor, thereby extending the Group's maturity profile. Mondi's
available liquidity at 31 December
2024 was €1,028 million, comprising the undrawn Syndicated
Revolving Credit Facility (RCF) of €750 million and cash and cash
equivalents of €278 million. The weighted average maturity of our
committed debt facilities at the end of the year was 3.9 years with
no significant short-term debt maturities. Our financing agreements
do not contain financial covenants.
In
addition, and effective from January
2025, we increased the RCF by €250 million (to €1 billion)
to further strengthen our liquidity position.
The Group
maintains its investment grade credit rating and has an A- (stable
outlook) credit rating from Standard & Poor’s and a Baa1
(stable outlook) credit rating from Moody’s.
Principal
risks
The Board
is responsible for the effectiveness of the Group’s risk management
activities and internal control processes. It has put procedures in
place for identifying, evaluating, and managing the risks faced by
the Group. In combination with the Audit Committee, the Board
conducted, over the course of the year, a robust assessment of the
Group’s principal and emerging risks to which Mondi is exposed and
it is satisfied that the Group has effective systems and controls
in place to manage these risks relative to the risk appetite levels
established.
Risk
management is by its nature a dynamic and ongoing process. Risk
management is of key importance given the diversity of the Group’s
locations, markets and production processes. Our internal controls
aim to provide reasonable assurance as to the accuracy, reliability
and integrity of our financial information, non-financial
disclosures and the Group’s compliance with applicable laws,
regulations and internal policies as well as the effectiveness of
internal processes.
Key
changes in the year
The Group’s
most significant risks are long term in nature. The assessment of
the principal risks is updated annually to reflect the developments
in our strategic priorities and Board discussions on emerging
risks.
In 2024, a
review of the Group’s approach to the assessment of risk appetite
was performed. The review considered various risk appetite
methodologies and settled on an optimal approach which enables risk
owners to use and own the risk appetite in a practical manner. The
Group utilises a four-point risk appetite rating scale against
which the residual risk of each principal risk can be considered.
Where a difference is identified between the risk appetite and
residual risk rating, the risk owner provides an explanation for
and a chosen approach to address the differential to the Executive
Committee and the Board.
A detailed
risk assurance map is used to present our principal risks to the
Board, Audit Committee and Sustainable Development Committee,
facilitating comprehensive discussions on risk. The Board, in
combination with the Audit Committee, is satisfied that the review
performed has enhanced the Group’s approach to risk management. The
Group remains committed to the continuous improvement of risk
assessment, risk management and risk reporting.
No changes
to the Group’s principal risks were identified during the 2024
review.
The Board
considered decreasing the risk rating for cost and availability of
raw materials due to a stabilised procurement environment; however,
the risk rating was maintained due to longer-term structural
changes in the pricing and availability of wood.
Emerging
risks
The Board
introduced a new emerging risk for the Group related to the
integration of a major acquisition, prompted by the announced
acquisition of the Western Europe Packaging Assets of Schumacher
Packaging, which is scheduled to complete in the first half of
2025.
The risks
noted relating to a major acquisition included the integration of a
private company into a public company environment, the large scale
of the acquisition, the alignment of a different IT landscape and
the combining of different corporate cultures.
The Board
is confident that risks associated with the acquisition will be
well mitigated, and that inclusion as an emerging risk and not as a
principal risk is the correct judgement.
In 2023,
the Group noted one emerging risk for the execution of major
capital expenditure projects. This emerging risk was amended in
2024 to an emerging risk labelled start-up and commercial ramp-up
of major capital projects. The amendment is due to the current
phase of the Group’s capital investment programme. The emerging
risk is managed through mitigating activities, such that the
residual risk exposure is not considered significant.
Asset
start-up and commercial ramp-up are planned in detail and updated
from initial project inception through to completion.
Post-investment reviews are conducted on major
capital investments to evaluate
the project execution against the plan
and identify lessons learnt. We will continue to monitor and
mitigate potential risks relating
to the start-up and commercial ramp-up of major capital projects in
the year ahead.
Strategic
risks
The
industries and geographies in which we operate expose us to
specific long-term risks which are accepted by the Board as a
consequence of the Group’s chosen strategy and
operating footprint.
We continue
to monitor recent capacity announcements, demand developments and
how consumers are demanding more sustainable packaging. We continue
to develop our understanding of climate change risks and its impact
whilst continuing to improve our disclosures and improve our
responses.
The
Executive Committee and Board monitor our exposure to these risks
and evaluate investment decisions against our overall exposures so
that our strategic capital allocation takes advantage of the
opportunities arising from our deliberate exposure to
such risks.
Our
principal strategic risks relate to the following:
•
Industry
productive capacity
•
Product
substitution
•
Fluctuations
and variability in selling prices or gross margins
•
Country
risk
•
Climate
change risks
Financial
risks
We aim to
maintain an appropriate capital structure and to manage our
financial risk exposures in compliance with all laws and
regulations.
An
attentive approach to financial risk management remains in response
to tax risks and ongoing short-term currency volatility.
Our
principal financial risks relate to the following:
•
Capital
structure
•
Currency
risk
•
Tax
risk
Operational
risks
As a Group
we focus on operational excellence and investment in our people and
are committed to the responsible use of resources.
Our
investments to improve our energy efficiency, engineer out our most
significant safety risks and improve operating efficiencies reduce
the likelihood of operational risk events.
Our
principal operational risks relate to the following:
•
Cost and
availability of raw materials
•
Energy
security and related input costs
•
Technical
integrity of our operating assets
•
Environmental
impact
•
Employee
and contractor health and safety
•
Attraction
and retention of key skills and talent
•
Cyber
security risk
Compliance
risk
We have a
zero tolerance approach to non-compliance. Our strong culture and
values underpin our approach. These are emphasised in every part of
our business with a focus on integrity, honesty and
transparency.
Our
principal compliance risk relates to reputational risk.
A more
detailed description of our principal risks can be found in the
Group’s 2023 Integrated Report. The 2024 Integrated Report is
planned to be published in March
2025.
Going
concern
The
directors have reviewed the Group’s budget and considered the
assumptions contained in the budget, including consideration of the
principal risks which may impact
the Group’s performance in the 18 months
following the balance sheet date and considerations of the period
immediately thereafter.
The Group
has a strong balance sheet. At 31 December
2024, the Group had a liquidity
position of €1,028 million, comprising €750 million of undrawn
committed debt facilities and cash and cash equivalents of €278
million available. As the Group’s debt facilities and loan
agreements contain no financial covenants, in performing its going
concern assessment the directors have focused on
liquidity.
The Group
announced on 9 October 2024 that it
entered into an agreement to acquire the
Western Europe Packaging Assets of Schumacher Packaging for
an enterprise
value of €634 million. The required financing for the transaction
has been considered in all scenarios tested. In order
to provide
increased liquidity headroom for the Group following the agreed
Schumacher Packaging acquisition, the Group utilised the accordion
increase in its €750 million RCF, to increase the available
facility by €250 million to €1 billion, effective 2 January 2025. All of the banks agreed to the
increase.
The Group
has a track record of successfully accessing both bank and debt
capital markets for funding, and the Group’s management is
expecting to be able to refinance
any facility maturing during the going
concern period. The Board believes that the strong
and stable
financial position of the
Group, supported
by a continued strong investment
grade credit rating from both
Moody’s (Baa1, outlook stable) and Standard & Poor’s (A-,
outlook stable), ensures the Group has
access to funding through the going
concern period.
The current
and possible future impact from the macroeconomic environment on
the Group’s activities and performance has been considered by the
Board in preparing its going concern assessment. The base case
forecasts for the Group, being those arising over the 18-month
going concern assessment period as reflected in the Group’s
2025-2027 plan, were sensitised to reflect a severe but plausible
downside scenario on Group performance.
The
scenario testing assumed severe but plausible volume and margin
reductions happening in combination and was carried out against
Mondi’s current committed debt facilities, and on the assumption
that the Group’s €600 million Eurobond maturing in April 2026 will be successfully refinanced. Given
the Group’s track record of successfully accessing both the bank
and debt capital markets for funding, the Board is confident that
the Group will be able to refinance the bond. This testing does not
incorporate any mitigation actions such as reductions and deferrals
of capital and operational expenditure or cash preservation
responses, which the Group would implement in the event of severe
and extended revenue decline.
In the
severe but plausible downside scenario, the Group has sufficient
liquidity headroom throughout the entire period covered by the
going concern assessment.
A further
scenario has been modelled which, while considered highly unlikely,
assumes that no refinancing takes place during the going concern
period. In this scenario the Group would implement mitigating
actions including reductions and deferrals
of capital and operational expenditure and other cash preservation
responses to maintain sufficient liquidity.
In addition
to its modelled downside going concern scenario, the Board has
reverse stress tested the model to determine the extent of downturn
which would result in no liquidity headroom. The test was conducted
based on the Group’s current committed debt facilities, with the
assumption that any facility maturing during the assessment period
will be refinanced. A decline of 45% to the planned underlying
EBITDA in the period until 30 June
2026, well in excess of that contemplated in the severe but
plausible downside scenario, would need to persist throughout the
observed period to result in no liquidity headroom, which is
considered very unlikely. This reverse stress test also does not
incorporate mitigating actions such as reductions and deferrals of
capital and operational expenditure or cash preservation responses,
which the Group would implement in the event of a severe and
extended revenue decline.
Following
its assessment, the directors have formed a judgement, at the time
of approving the condensed consolidated financial statements, that
there are no material uncertainties that cast doubt on the Group’s
going concern status and that it is a reasonable expectation that
the Group has adequate resources to continue in operational
existence for the going concern period. For this reason, the Group
continues to adopt the going concern basis in preparing the
condensed consolidated financial statements for the year ended
31 December
2024.
Audited
financial information
The
condensed consolidated financial statements and notes 1 to 19 for
the year ended 31 December
2024 are derived from the Group annual financial statements
which have been audited by PricewaterhouseCoopers LLP. The
unmodified audit report is available for inspection at the Group’s
registered office.
Condensed
consolidated income statement
for the
year ended 31 December
2024
|
|
|
2024
|
2023
|
|
€ million
|
Notes
|
Underlying
|
Special
items
(Note 4)
|
Total
|
Underlying
|
Special
items
(Note 4)
|
Total
|
|
From
continuing operations
|
|
|
|
|
|
|
|
|
Group
revenue
|
3
|
7,416
|
—
|
7,416
|
7,330
|
—
|
7,330
|
|
Materials,
energy and consumables used
|
|
(3,696)
|
—
|
(3,696)
|
(3,971)
|
—
|
(3,971)
|
|
Variable
selling expenses
|
|
(645)
|
—
|
(645)
|
(618)
|
—
|
(618)
|
|
Gross
margin
|
|
3,075
|
—
|
3,075
|
2,741
|
—
|
2,741
|
|
Maintenance
and other indirect expenses
|
|
(425)
|
—
|
(425)
|
(374)
|
—
|
(374)
|
|
Personnel
costs
|
|
(1,228)
|
(18)
|
(1,246)
|
(1,087)
|
(9)
|
(1,096)
|
|
Other net
operating expenses
|
|
(373)
|
(58)
|
(431)
|
(79)
|
(14)
|
(93)
|
|
EBITDA
|
3
|
1,049
|
(76)
|
973
|
1,201
|
(23)
|
1,178
|
|
Depreciation,
amortisation and impairments
|
|
(443)
|
(74)
|
(517)
|
(411)
|
(4)
|
(415)
|
|
Operating
profit
|
3
|
606
|
(150)
|
456
|
790
|
(27)
|
763
|
|
Net loss
from joint ventures
|
|
(3)
|
—
|
(3)
|
(5)
|
—
|
(5)
|
|
Impairment
of investments in joint ventures
|
|
—
|
—
|
—
|
(5)
|
—
|
(5)
|
|
Net finance
costs
|
|
(70)
|
—
|
(70)
|
(73)
|
—
|
(73)
|
|
Investment
income
|
|
30
|
—
|
30
|
45
|
—
|
45
|
|
Foreign
currency (losses)/gains
|
|
(3)
|
—
|
(3)
|
1
|
—
|
1
|
|
Finance
costs
|
|
(97)
|
—
|
(97)
|
(119)
|
—
|
(119)
|
|
Net
monetary (loss)/gain arising from hyperinflationary
economies
|
|
(5)
|
—
|
(5)
|
2
|
—
|
2
|
|
Profit
before tax
|
|
528
|
(150)
|
378
|
709
|
(27)
|
682
|
|
Tax
(charge)/credit
|
6
|
(117)
|
1
|
(116)
|
(167)
|
6
|
(161)
|
|
Profit
from continuing operations
|
|
411
|
(149)
|
262
|
542
|
(21)
|
521
|
|
From
discontinued operations
|
|
|
|
|
|
|
|
|
Loss from
discontinued operations1
|
|
|
|
—
|
|
|
(655)
|
|
Profit/(loss)
for the year
|
|
|
|
262
|
|
|
(134)
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
Non-controlling
interests
|
|
|
|
44
|
|
|
19
|
|
Shareholders
|
|
|
|
218
|
|
|
(153)
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share (EPS) attributable to
shareholders2
|
|
|
|
|
|
|
|
|
euro
cents
|
|
|
|
|
|
|
|
|
From
continuing operations
|
|
|
|
|
|
|
|
|
Basic
EPS
|
7
|
|
|
49.1
|
|
|
103.5
|
|
Diluted
EPS
|
7
|
|
|
49.1
|
|
|
103.5
|
|
Basic
underlying EPS
|
7
|
|
|
82.7
|
|
|
107.8
|
|
Diluted
underlying EPS
|
7
|
|
|
82.6
|
|
|
107.8
|
|
From
continuing and discontinued operations
|
|
|
|
|
|
|
|
|
Basic
EPS
|
7
|
|
|
49.1
|
|
|
(31.5)
|
|
Diluted
EPS
|
7
|
|
|
49.1
|
|
|
(31.5)
|
Notes:
1 Discontinued
operations represent the Group’s Russian packaging operations and
the Syktyvkar mill until the disposal completed on 30 June 2023 and 4 October
2023, respectively. Details on the transaction and
information on the financial performance and cash flows of the
discontinued operations for the year ended 31 December
2023 were disclosed in note 28 of the Group’s Integrated
report and financial statements 2023.
2 On
13 February 2024, the Group returned
the net proceeds from the sale of the Group’s Russian assets to its
shareholders by way of a special dividend. In addition, in order to
maintain the comparability, so far as possible, of Mondi plc’s
share price before and after the special dividend, the special
dividend was accompanied by a share consolidation, which took
effect on 29 January
2024, resulting in shareholders receiving 10 new ordinary
shares for every 11 existing ordinary shares. Further details are
provided in notes 7, 8 and 10.
Condensed
consolidated statement of comprehensive income
for the
year ended 31 December
2024
|
|
2024
|
2023
|
|
€ million
|
Before
tax amount
|
Tax
credit
|
Net
of tax amount
|
Before
tax amount
|
Tax
credit
|
Net
of tax amount
|
|
Profit/(loss)
for the year
|
|
|
262
|
|
|
(134)
|
|
Items
that may subsequently be or have been reclassified to the condensed
consolidated income statement
|
|
|
|
|
|
|
|
Fair value
losses arising from cash flow hedges of continuing
operations
|
(2)
|
1
|
(1)
|
—
|
—
|
—
|
|
Exchange
differences on translation of continuing non-euro
operations
|
75
|
—
|
75
|
(70)
|
—
|
(70)
|
|
Exchange
differences on translation of discontinued non-euro
operations
|
—
|
—
|
—
|
(227)
|
—
|
(227)
|
|
Reclassification
of foreign currency translation reserve to the consolidated income
statement on disposal of businesses of discontinued
operations
|
—
|
—
|
—
|
633
|
—
|
633
|
|
Items
that will not subsequently be reclassified to the condensed
consolidated income statement
|
|
|
|
|
|
|
|
Remeasurements
of retirement benefits plans of continuing operations
|
(2)
|
—
|
(2)
|
(23)
|
7
|
(16)
|
|
Other
comprehensive income for the year
|
71
|
1
|
72
|
313
|
7
|
320
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income/(expense) attributable to:
|
|
|
|
|
|
|
|
Non-controlling
interests
|
|
|
11
|
|
|
(3)
|
|
Shareholders
|
|
|
61
|
|
|
323
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income attributable to:
|
|
|
|
|
|
|
|
Non-controlling
interests
|
|
|
55
|
|
|
16
|
|
Shareholders
|
|
|
279
|
|
|
170
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income/(expense) attributable to shareholders arises
from:
|
|
|
|
|
|
|
|
Continuing
operations
|
|
|
279
|
|
|
419
|
|
Discontinued
operations
|
|
|
—
|
|
|
(249)
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income for the year
|
|
|
334
|
|
|
186
|
Condensed
consolidated statement of financial position
as at
31 December
2024
|
€ million
|
Notes
|
2024
|
2023
|
|
Property,
plant and equipment
|
|
5,160
|
4,619
|
|
Goodwill
|
|
767
|
765
|
|
Intangible
assets
|
|
70
|
68
|
|
Forestry
assets
|
9
|
503
|
519
|
|
Investments
in joint ventures
|
|
5
|
8
|
|
Financial
instruments
|
|
29
|
28
|
|
Deferred
tax assets
|
|
22
|
24
|
|
Net
retirement benefits asset
|
|
3
|
5
|
|
Other
non-current assets
|
|
3
|
5
|
|
Total
non-current assets
|
|
6,562
|
6,041
|
|
Inventories
|
|
1,194
|
1,049
|
|
Trade and
other receivables
|
|
1,275
|
1,254
|
|
Current tax
assets
|
|
22
|
14
|
|
Financial
instruments
|
|
10
|
14
|
|
Cash and
cash equivalents
|
14b
|
278
|
1,592
|
|
Total
current assets
|
|
2,779
|
3,923
|
|
Total
assets
|
|
9,341
|
9,964
|
|
|
|
|
|
|
Short-term
borrowings
|
11
|
(63)
|
(559)
|
|
Trade and
other payables
|
|
(1,281)
|
(1,219)
|
|
Current tax
liabilities
|
|
(67)
|
(78)
|
|
Provisions
|
|
(65)
|
(21)
|
|
Financial
instruments
|
|
(9)
|
(4)
|
|
Total
current liabilities
|
|
(1,485)
|
(1,881)
|
|
Medium- and
long-term borrowings
|
11
|
(1,952)
|
(1,460)
|
|
Net
retirement benefits liability
|
12
|
(161)
|
(159)
|
|
Deferred
tax liabilities
|
|
(342)
|
(322)
|
|
Provisions
|
|
(32)
|
(27)
|
|
Other
non-current liabilities
|
|
(19)
|
(19)
|
|
Total
non-current liabilities
|
|
(2,506)
|
(1,987)
|
|
Total
liabilities
|
|
(3,991)
|
(3,868)
|
|
|
|
|
|
|
Net
assets
|
|
5,350
|
6,096
|
|
|
|
|
|
|
Equity
|
|
|
|
|
Share
capital
|
10
|
97
|
97
|
|
Own
shares
|
|
(20)
|
(17)
|
|
Retained
earnings
|
|
4,582
|
5,434
|
|
Other
reserves
|
|
198
|
141
|
|
Total
attributable to shareholders
|
|
4,857
|
5,655
|
|
Non-controlling
interests in equity
|
|
493
|
441
|
|
Total
equity
|
|
5,350
|
6,096
|
The Group’s
condensed consolidated financial statements, including related
notes 1 to 19, were approved by the Board and authorised for issue
on 19 February 2025 and were signed
on its behalf by:
Andrew King Mike
Powell
Director Director
Condensed
consolidated statement of changes in equity
for the
year ended 31 December
2024
|
€ million
|
Equity
attributable to shareholders
|
Non-controlling
interests
|
Total
equity
|
|
At 1
January 2023
|
5,794
|
460
|
6,254
|
|
Total
comprehensive income for the year:
|
170
|
16
|
186
|
|
(Loss)/profit
for the year
|
(153)
|
19
|
(134)
|
|
Other
comprehensive income/(expense)
|
323
|
(3)
|
320
|
|
Hyperinflation
monetary adjustment
|
14
|
1
|
15
|
|
Transactions
with shareholders in their capacity as shareholders
|
|
|
|
|
Dividends
|
(345)
|
(7)
|
(352)
|
|
Purchases
of own shares
|
(8)
|
—
|
(8)
|
|
Mondi share
schemes’ charge
|
9
|
—
|
9
|
|
Non-controlling
interests bought out
|
21
|
(29)
|
(8)
|
|
At
31 December
2023
|
5,655
|
441
|
6,096
|
|
Total
comprehensive income for the year:
|
279
|
55
|
334
|
|
Profit for
the year
|
218
|
44
|
262
|
|
Other
comprehensive income
|
61
|
11
|
72
|
|
Hyperinflation
monetary adjustment
|
7
|
—
|
7
|
|
Transactions
with shareholders in their capacity as shareholders
|
|
|
|
|
Dividends
(see note 8)
|
(1,081)
|
(6)
|
(1,087)
|
|
Purchases
of own shares
|
(12)
|
—
|
(12)
|
|
Mondi share
schemes’ charge
|
9
|
—
|
9
|
|
Injection
from non-controlling interests
|
—
|
3
|
3
|
|
At
31 December
2024
|
4,857
|
493
|
5,350
|
Equity
attributable to shareholders
|
€ million
|
2024
|
2023
|
At
1 January 2023
|
|
Share
capital
|
97
|
97
|
97
|
|
Own
shares
|
(20)
|
(17)
|
(16)
|
|
Retained
earnings
|
4,582
|
5,434
|
5,895
|
|
Cumulative
translation adjustment reserve
|
(456)
|
(520)
|
(859)
|
|
Post-retirement
benefits reserve
|
(59)
|
(53)
|
(35)
|
|
Share-based
payment reserve
|
19
|
19
|
17
|
|
Cash flow
hedge reserve
|
—
|
1
|
1
|
|
Merger
reserve
|
667
|
667
|
667
|
|
Other
sundry reserves
|
27
|
27
|
27
|
|
Total
|
4,857
|
5,655
|
5,794
|
Condensed
consolidated statement of cash flows
for the
year ended 31 December
2024
|
€ million
|
Notes
|
2024
|
2023
|
|
Cash
flows from operating activities
|
|
|
|
|
Cash
generated from continuing operations
|
14a
|
970
|
1,312
|
|
Dividends
received from other investments
|
|
1
|
2
|
|
Income tax
paid
|
|
(120)
|
(178)
|
|
Net cash
generated from operating activities of discontinued
operations
|
|
—
|
223
|
|
Net
cash generated from operating activities
|
|
851
|
1,359
|
|
|
|
|
|
|
Cash
flows from investing activities
|
|
|
|
|
Investment
in property, plant and equipment
|
3
|
(933)
|
(830)
|
|
Investment
in intangible assets
|
|
(13)
|
(16)
|
|
Investment
in forestry assets
|
9
|
(48)
|
(48)
|
|
Proceeds
from the disposal of property, plant and equipment
|
|
17
|
25
|
|
Proceeds
from the disposal of financial asset investments
|
|
—
|
2
|
|
Acquisition
of businesses, net of cash and cash equivalents
|
13
|
(6)
|
(37)
|
|
Loans
advanced to related and external parties
|
|
—
|
(1)
|
|
Interest
received
|
|
32
|
38
|
|
Other
investing activities
|
|
15
|
17
|
|
Net cash
generated from investing activities of discontinued
operations
|
|
—
|
368
|
|
Net
cash used in investing activities
|
|
(936)
|
(482)
|
|
|
|
|
|
|
Cash
flows from financing activities
|
|
|
|
|
Proceeds
from issue of Eurobonds
|
14c
|
496
|
—
|
|
Repayment
of Eurobonds
|
14c
|
(500)
|
—
|
|
Proceeds
from medium- and long-term borrowings
|
14c
|
215
|
—
|
|
Repayment
of medium- and long-term borrowings
|
14c
|
(215)
|
—
|
|
Proceeds
from short-term borrowings
|
14c
|
9
|
16
|
|
Repayment
of short-term borrowings
|
14c
|
(18)
|
(33)
|
|
Repayment
of lease liabilities
|
14c
|
(26)
|
(22)
|
|
Interest
paid
|
14c
|
(44)
|
(50)
|
|
Dividends
paid to shareholders
|
8
|
(1,081)
|
(345)
|
|
Dividends
paid to non-controlling interests
|
|
(6)
|
(7)
|
|
Purchases
of own shares
|
|
(12)
|
(8)
|
|
Injection
from non-controlling interests
|
|
3
|
—
|
|
Non-controlling
interests bought out
|
|
—
|
(8)
|
|
Net cash
outflow from debt-related derivative financial
instruments
|
14c
|
(47)
|
(77)
|
|
Net cash
used in financing activities of discontinued operations
|
|
—
|
(7)
|
|
Net
cash used in financing activities
|
|
(1,226)
|
(541)
|
|
|
|
|
|
|
Net
(decrease)/increase in cash and cash
equivalents
|
|
(1,311)
|
336
|
|
|
|
|
|
|
Cash and
cash equivalents at beginning of year
|
|
1,592
|
1,381
|
|
Cash
movement in the year
|
14c
|
(1,311)
|
336
|
|
Effects of
changes in foreign exchange rates
|
14c
|
(12)
|
(125)
|
|
Cash
and cash equivalents at end of year
|
14b
|
269
|
1,592
|
Notes
to the condensed consolidated financial
statements
for the
year ended 31 December
2024
1
Basis
of preparation
These
condensed consolidated financial statements as at and for the year
ended 31 December
2024 comprise Mondi plc and its subsidiaries (referred to as
'the Group'), and the Group’s share of the results and net assets
of its associates and joint ventures.
The Group’s
condensed consolidated financial statements have been derived from
the audited consolidated financial statements of the Group,
prepared in accordance with UK-adopted International Accounting
Standards and with the requirements of the Companies Act 2006 as
applicable to companies reporting under those standards. The
Group’s condensed consolidated financial statements do not contain
sufficient information to comply with International Financial
Reporting Standards (IFRS Accounting Standards).
The
financial information set out in these condensed consolidated
financial statements does not constitute the Company’s statutory
accounts for the years ended 31 December
2024 or 2023 but is derived from those accounts. Statutory
accounts for 2023 have been delivered to the Registrar of
Companies, and those for 2024 will be delivered in due course. The
auditors have reported on those accounts; their report was (i)
unqualified, (ii) did not include a reference to any matters to
which the auditors drew attention by way of emphasis without
qualifying their report and (iii) did not contain a statement under
section 498 (2) or (3) of the Companies Act 2006. Copies of the
unqualified auditors' report on the Integrated report and financial
statements 2024 are available for inspection at the registered
office of Mondi plc.
The
condensed consolidated financial statements have been prepared on a
going concern basis as discussed in the commentary under the
heading ‘Going concern’ which is incorporated by reference into
these condensed consolidated financial statements.
The
condensed consolidated financial statements have been prepared
under the historical cost basis of accounting, as modified by
forestry assets, pension assets, certain financial assets and
financial liabilities held at fair value through profit and loss,
assets acquired and liabilities assumed in a business combination
and accounting in hyperinflationary economies.
2
Accounting
policies
The same
accounting policies and Alternative Performance Measures (APMs),
methods of computation and presentation have been followed in the
preparation of the condensed consolidated financial statements for
the year ended 31 December
2024 as were applied in the preparation of the Group’s
annual financial statements for the year ended
31 December
2023, except as follows:
•
A number of
amendments to IFRS became effective for the financial period
beginning on 1 January 2024, but the
Group did not have to change its accounting policies or make any
retrospective adjustments as a result of adopting these
amendments.
Alternative
Performance Measures
The Group
presents certain measures of financial performance, position or
cash flows that are not defined or specified according to IFRS
Accounting Standards and UK-adopted International Accounting
Standards. These measures, referred to as Alternative Performance
Measures, are defined at the end of this document.
3
Operating
segments
The Group’s
operating segments are reported in a manner consistent with the
internal reporting provided to the Executive Committee, the chief
operating decision-making body. The operating segments are managed
based on the nature of the underlying products produced by those
businesses and, consistent with prior year, comprise three distinct
segments.
Year
ended 31 December
20241
|
€ million,
unless otherwise stated
|
Corrugated
Packaging
|
Flexible
Packaging
|
Uncoated
Fine Paper
|
Corporate
|
Intersegment
elimination
|
Total
continuing operations
|
|
Segment
revenue
|
2,251
|
3,964
|
1,317
|
—
|
(116)
|
7,416
|
|
Internal
revenue
|
(22)
|
(37)
|
(57)
|
—
|
116
|
—
|
|
External
revenue
|
2,229
|
3,927
|
1,260
|
—
|
—
|
7,416
|
|
Underlying
EBITDA
|
328
|
558
|
198
|
(35)
|
—
|
1,049
|
|
Depreciation,
amortisation and impairments2
|
(167)
|
(203)
|
(72)
|
(1)
|
—
|
(443)
|
|
Underlying
operating profit/(loss)
|
161
|
355
|
126
|
(36)
|
—
|
606
|
|
Special
items before tax
|
(5)
|
(132)
|
—
|
(13)
|
—
|
(150)
|
|
Capital
employed
|
2,609
|
3,418
|
1,133
|
(78)
|
—
|
7,082
|
|
Trailing
12-month average capital employed
|
2,224
|
3,051
|
1,134
|
(126)
|
—
|
6,283
|
|
Additions
to non-current non-financial assets
|
346
|
565
|
160
|
—
|
—
|
1,071
|
|
Capital
expenditure cash payments
|
321
|
518
|
94
|
—
|
—
|
933
|
|
Underlying
EBITDA margin (%)
|
14.6
|
14.1
|
15.0
|
—
|
—
|
14.1
|
|
Return on
capital employed (%)
|
7.2
|
11.5
|
11.1
|
—
|
—
|
9.6
|
|
Average
number of employees (thousands)3
|
6.4
|
12.0
|
2.7
|
0.1
|
—
|
21.2
|
Year
ended 31 December
20231
|
€ million,
unless otherwise stated
|
Corrugated
Packaging
|
Flexible
Packaging
|
Uncoated
Fine Paper
|
Corporate
|
Intersegment
elimination
|
Total
continuing operations
|
|
Segment
revenue
|
2,280
|
3,866
|
1,292
|
—
|
(104)
|
7,334
|
|
Internal
revenue4
|
(23)
|
(33)
|
(52)
|
—
|
104
|
(4)
|
|
External
revenue
|
2,257
|
3,833
|
1,240
|
—
|
—
|
7,330
|
|
Underlying
EBITDA
|
310
|
637
|
289
|
(35)
|
—
|
1,201
|
|
Depreciation,
amortisation and impairments2
|
(151)
|
(191)
|
(68)
|
(1)
|
—
|
(411)
|
|
Underlying
operating profit/(loss)
|
159
|
446
|
221
|
(36)
|
—
|
790
|
|
Special
items before tax
|
—
|
—
|
(27)
|
—
|
—
|
(27)
|
|
Capital
employed
|
2,318
|
3,167
|
1,095
|
(65)
|
—
|
6,515
|
|
Trailing
12-month average capital employed
|
2,057
|
3,068
|
1,075
|
(65)
|
—
|
6,135
|
|
Additions
to non-current non-financial assets
|
379
|
427
|
129
|
—
|
—
|
935
|
|
Capital
expenditure cash payments
|
326
|
425
|
79
|
—
|
—
|
830
|
|
Underlying
EBITDA margin (%)
|
13.6
|
16.5
|
22.4
|
—
|
—
|
16.4
|
|
Return on
capital employed (%)
|
7.7
|
14.4
|
20.6
|
—
|
—
|
12.8
|
|
Average
number of employees (thousands)3
|
6.5
|
11.6
|
2.8
|
0.1
|
—
|
21.0
|
Notes:
1
See
definitions of APMs at the end of this document.
2
Previously
presented separately as 'depreciation and impairment' and
'amortisation' and includes only impairments not classified as
special items.
3
Presented
on a full-time employee equivalent basis.
4
Total
continuing operations' internal revenue relates to transactions
with discontinued operations.
External
revenue by location of contribution and by location of
customer
|
|
External
revenue
by
location of contribution
|
External
revenue
by
location of customer
|
|
€
million
|
2024
|
2023
|
2024
|
2023
|
|
Western
Europe
|
|
|
|
|
|
Austria
|
1,175
|
1,301
|
166
|
159
|
|
Germany
|
555
|
579
|
932
|
954
|
|
UK
|
3
|
3
|
196
|
192
|
|
Rest of
Western Europe
|
721
|
792
|
1,620
|
1,691
|
|
Western
Europe total
|
2,454
|
2,675
|
2,914
|
2,996
|
|
Emerging
Europe
|
|
|
|
|
|
Czech
Republic
|
705
|
657
|
264
|
252
|
|
Poland
|
1,347
|
1,275
|
729
|
722
|
|
Turkiye
|
490
|
426
|
533
|
486
|
|
Rest of
emerging Europe
|
919
|
887
|
543
|
521
|
|
Emerging
Europe total
|
3,461
|
3,245
|
2,069
|
1,981
|
|
Africa
|
|
|
|
|
|
South
Africa
|
667
|
656
|
489
|
495
|
|
Rest of
Africa
|
80
|
95
|
366
|
395
|
|
Africa
total
|
747
|
751
|
855
|
890
|
|
Russia
|
—
|
—
|
—
|
5
|
|
North
America
|
648
|
561
|
850
|
825
|
|
South
America
|
7
|
3
|
93
|
94
|
|
Asia and
Australia
|
99
|
95
|
635
|
539
|
|
Total
Group revenue from continuing operations
|
7,416
|
7,330
|
7,416
|
7,330
|
4
Special
items
The Group
separately discloses special items, an APM as defined at the end of
this document, on the face of the condensed consolidated income
statement to assist its stakeholders in understanding the
underlying financial performance achieved by the Group on a basis
that is comparable from year to year.
|
€ million
|
2024
|
2023
|
|
Operating
special items
|
|
|
|
Impairment
of assets
|
(74)
|
(4)
|
|
Restructuring
and closure costs:
|
|
|
|
Personnel
costs
|
(18)
|
(9)
|
|
Other
restructuring and closure costs
|
(40)
|
(14)
|
|
Costs
relating to the acquisition of Schumacher Packaging
|
(5)
|
—
|
|
Costs
relating to the aborted all-share combination with DS Smith
plc
|
(13)
|
—
|
|
Total
special items before tax
|
(150)
|
(27)
|
|
Tax credit
(see note 6)
|
1
|
6
|
|
Total
special items
|
(149)
|
(21)
|
The
operating special items resulted in a cash outflow from operating
activities of €34 million for the year ended 31 December
2024 (2023: €10 million).
To
31 December
2024
The special
items during the year ended 31 December
2024 comprised:
•
Corrugated
Packaging
-
On
9 October 2024, the Group announced
that it has entered into an agreement to acquire the Western Europe
Packaging Assets of Schumacher Packaging for an enterprise value of
€634 million. The transaction, which is subject to certain
customary regulatory approvals, is expected to close in the first
half of 2025. In 2024, transaction costs of €5 million
were recognised and additional costs will be incurred in 2025 with
total costs expected to exceed €10 million.
•
Flexible
Packaging
-
Closure of
a paper bags plant in Maastricht (Netherlands). Restructuring and closure costs
of €13 million
were recognised.
-
Closure of
a paper bags plant in Pine Bluff (USA). Restructuring and closure costs of
€8 million
and related impairment of assets of €1 million
were recognised. Additional costs will be incurred in 2025 with
total costs expected to exceed €10 million.
-
Closure of
Stambolijski paper mill (Bulgaria)
following a fire in September 2024.
Restructuring and closure costs of €37 million
and related impairment of assets of €73 million
were recognised.
•
Corporate
-
€13 million
of costs relating to the aborted all-share combination with DS
Smith plc. On 19 April 2024, the
Board announced it did not intend to make an offer for DS Smith plc
following a period of due diligence and after carefully considering
the value the all-share combination with DS Smith plc would deliver
to Mondi's shareholders.
To
31 December
2023
The special
items during the year ended 31 December
2023 comprised:
•
Uncoated
Fine Paper
-
Closure of
a paper machine and streamlining the capacity of the finishing
lines at the Neusiedler operations in Austria. Restructuring and closure costs of
€23 million and related impairment of assets of €4 million were
recognised.
5
Write-down
of inventories to net realisable value
|
€ million
|
2024
|
2023
|
|
Within
materials, energy and consumables used
|
|
|
|
Write-down
of inventories to net realisable value
|
(69)
|
(77)
|
|
Aggregate
reversal of previous write-downs of inventories
|
49
|
45
|
6
Taxation
The Group’s
effective rate of tax before special items for the year ended
31 December
2024 was 22.2% (2023: 23.6%).
|
€ million
|
2024
|
2023
|
|
UK
corporation tax at 25% (2023: 23.5%)
|
4
|
—
|
|
Overseas
tax
|
105
|
135
|
|
Current tax
in respect of the prior years
|
(4)
|
(13)
|
|
Current
tax
|
105
|
122
|
|
Deferred
tax in respect of the current year
|
10
|
62
|
|
Deferred
tax in respect of the prior years
|
(5)
|
(24)
|
|
Deferred
tax attributable to a change in the
rate of domestic income tax
|
7
|
7
|
|
Tax
charge before special items
|
117
|
167
|
|
Current tax
on special items
|
—
|
(6)
|
|
Deferred
tax on special items
|
(1)
|
—
|
|
Tax
credit on special items (see note 4)
|
(1)
|
(6)
|
|
Tax
charge for the year
|
116
|
161
|
|
Current tax
charge
|
105
|
116
|
|
Deferred
tax charge
|
11
|
45
|
|
|
|
|
On
24 May 2021, legislation was
substantively enacted in the UK to increase the corporate tax rate
from 19% to 25% with effect from 1 April
2023. In the year ended 31 December
2023, the 23.5% UK corporation tax rate referenced in the
table above reflects the average tax rate that applied in that
year.
The Group
is within the scope of the OECD Pillar 2 model rules as of
1 January 2024. The effective tax
rate (as calculated under the Pillar 2 transitional safe harbour
rules) in the majority of countries in which the Group operates
exceeds 15% for the year ended 31 December
2024. Additional Pillar 2 top-up tax of €3 million has been
included within the current tax charge for the year ended
31 December
2024, mostly arising in a small number of jurisdictions
benefitting from tax incentives on capital investments and tax
holidays.
7
Earnings
per share (EPS)
On
13 February 2024, the Group returned
the net proceeds from the sale of the Group's Russian assets to its
shareholders by way of a special
dividend (see note 8). In addition, in order to maintain the
comparability, so far as possible, of Mondi plc’s share price
before and after
the special dividend, the special dividend was accompanied by a
share consolidation, which took effect on 29 January
2024, resulting in shareholders receiving 10 new ordinary
shares for every 11 existing ordinary shares (see note
10).
For
calculating basic and diluted EPS measures, the Board concluded
that the overall effect of the share consolidation and special
dividend was a share repurchase at fair value. Therefore, the
reduction in the number of shares as a result of the share
consolidation was reflected in the denominator in the current year
prospectively from the day the dividend was paid
(i.e. 13 February
2024). The weighted average number of ordinary shares
outstanding for 2023 was not restated.
|
|
EPS
attributable to shareholders
|
|
euro
cents
|
2024
|
2023
|
|
From
continuing operations
|
|
|
|
Basic
EPS
|
49.1
|
103.5
|
|
Diluted
EPS
|
49.1
|
103.5
|
|
Basic
underlying EPS
|
82.7
|
107.8
|
|
Diluted
underlying EPS
|
82.6
|
107.8
|
|
From
continuing and discontinued operations
|
|
|
|
Basic
EPS
|
49.1
|
(31.5)
|
|
Diluted
EPS
|
49.1
|
(31.5)
|
|
Basic
headline EPS
|
60.8
|
145.3
|
|
Diluted
headline EPS
|
60.8
|
145.3
|
The
calculation of basic and diluted EPS, basic and diluted underlying
EPS and basic and diluted headline EPS is based on the following
data:
|
|
Earnings
|
|
€ million
|
2024
|
2023
|
|
Profit/(loss)
for the year attributable to shareholders
|
218
|
(153)
|
|
Arises
from:
|
|
|
|
Continuing
operations
|
218
|
502
|
|
Discontinued
operations
|
—
|
(655)
|
|
Special
items attributable to shareholders (see note 4)
|
150
|
27
|
|
Related tax
(see note 4)
|
(1)
|
(6)
|
|
Total
earnings for the year (prior to special items)
|
367
|
(132)
|
|
Arises
from:
|
|
|
|
Continuing
operations
|
367
|
523
|
|
Discontinued
operations
|
—
|
(655)
|
|
Gain on
disposal of property, plant and equipment
|
(12)
|
(13)
|
|
Insurance
reimbursements for property damages
|
(3)
|
(27)
|
|
Restructuring
and closure costs (see note 4)
|
(58)
|
(23)
|
|
Costs
relating to the aborted all-share combination with DS Smith plc
(see note 4)
|
(13)
|
—
|
|
Costs
relating to the acquisition of Schumacher Packaging (see note
4)
|
(5)
|
—
|
|
Gain on
purchase of business before transaction-related costs (see note
13)
|
(13)
|
—
|
|
Impairments
not included in special items
|
—
|
3
|
|
Loss
arising from sale and leaseback transaction
|
3
|
—
|
|
Loss on
disposal of businesses from discontinued operations
|
—
|
756
|
|
Impairments
included in loss from discontinued operations
|
—
|
113
|
|
Related
tax
|
4
|
28
|
|
Headline
earnings for the year
|
270
|
705
|
Underlying
earnings, total earnings (prior to special items) and headline
earnings represent APMs which are defined at the end of this
document.
|
|
Weighted
average number of shares
|
|
million
|
2024
|
2023
|
|
Basic
number of ordinary shares outstanding
|
444.0
|
485.1
|
|
Effect of
dilutive potential ordinary shares
|
0.1
|
—
|
|
Diluted
number of ordinary shares outstanding
|
444.1
|
485.1
|
8
Dividends
An interim
dividend for the year ended 31 December
2024 of 23.33 euro cents per
ordinary share was paid on Friday 27 September 2024
to those shareholders on the register of Mondi plc on Friday
23 August 2024.
A proposed
final dividend for the year ended 31 December
2024 of 46.67 euro cents per
ordinary share will be paid on Friday 16 May
2025 to those shareholders on the register of Mondi plc on
Friday 4 April 2025.
The final
ordinary dividend proposed has been recommended by the Board and is
subject to the approval of the shareholders of Mondi plc at the
Annual General Meeting scheduled for Thursday 8 May 2025.
|
|
2024
|
2023
|
|
|
euro
cents per share
|
€ million
|
euro
cents per share
|
€ million
|
|
Final
ordinary dividend paid in respect of the prior year
|
46.67
|
209
|
48.33
|
231
|
|
Special
dividend
|
160.00
|
769
|
—
|
—
|
|
Interim
ordinary dividend paid in respect of the current year
|
23.33
|
103
|
23.33
|
114
|
|
Total
ordinary and special dividends paid
|
|
1,081
|
|
345
|
|
|
|
|
|
|
|
Final
ordinary dividend proposed to shareholders
|
46.67
|
206
|
46.67
|
209
|
On
13 February 2024, the Group returned
the net proceeds from the sale of the Group's Russian assets to
shareholders by way of a special dividend of €1.60 per existing
ordinary share (see note 7). The final ordinary dividend for the
year ended 31 December
2023 was declared after the accompanying share consolidation
took effect and therefore, was declared based on the number of new
ordinary shares.
Dividend
timetable
The
proposed final dividend for the year ended 31 December
2024 of 46.67 euro cents
per share
will be paid in accordance with the following timetable:
|
Last
date to trade shares cum-dividend
|
|
|
JSE
Limited
|
Tuesday 1
April 2025
|
|
London
Stock Exchange
|
Wednesday 2
April 2025
|
|
Shares
commence trading ex-dividend
|
|
|
JSE
Limited
|
Wednesday 2
April 2025
|
|
London
Stock Exchange
|
Thursday 3
April 2025
|
|
Record
date
|
Friday 4
April 2025
|
|
Last
date for receipt of Dividend Reinvestment Plan (DRIP) elections by
Central Securities Depository Participants
|
Thursday 10
April 2025
|
|
Last
date for DRIP elections to UK Registrar and South African Transfer
Secretaries
|
|
|
South
African Register
|
Friday 11
April 2025
|
|
UK
Register
|
Tuesday 22
April 2025
|
|
Annual
General Meeting
|
Thursday 8
May 20251
|
|
Payment
date
|
Friday 16
May 2025
|
|
DRIP
purchase settlement date (subject to market conditions and the
purchase of shares in the open market)
|
|
|
UK
Register
|
Tuesday 20
May 2025
|
|
South
African Register
|
Thursday 22
May 2025
|
|
DRIP
results announcement
|
Friday 30
May 2025
|
|
Currency
conversion date
|
|
|
ZAR/euro
|
Thursday 20
February 2025
|
|
Euro/sterling
|
Thursday 24
April 2025
|
Note:
1 Results
of the Annual General Meeting to be held are expected to be
released on or around Thursday 8 May
2025.
Share
certificates on Mondi plc’s South African register may not be
dematerialised or rematerialised between Wednesday 2 April 2025 and Friday 4
April 2025, both dates inclusive, nor may transfers between
the UK and South African registers of Mondi plc take place between
Wednesday 26 March 2025 and Friday
4 April 2025, both dates
inclusive.
Information
relating to the dividend tax to be withheld from Mondi plc
shareholders on the South African branch register will be announced
separately, together with the ZAR/euro exchange rate to be applied,
on or shortly after Thursday 20 February
2025.
9
Forestry
assets
|
€ million
|
2024
|
2023
|
|
At 1
January
|
519
|
485
|
|
Investment
in forestry assets
|
48
|
48
|
|
Fair value
gains
|
7
|
128
|
|
Felling
costs
|
(92)
|
(87)
|
|
Currency
movements
|
21
|
(55)
|
|
At
31 December
|
503
|
519
|
|
Mature
|
371
|
359
|
|
Immature
|
132
|
160
|
|
|
|
|
The fair
value of forestry assets is a level 3 measure in terms of the fair
value measurement hierarchy (see note 17), consistent with prior
years. The fair value of forestry assets is determined using a
market based approach.
10
Share
capital
On
13 February 2024, the Group returned
the net proceeds from the sale of the Group’s Russian assets to
shareholders by way of a special dividend of €1.60 per existing
ordinary share. In addition, in order to maintain the
comparability, so far as possible, of Mondi plc’s share price
before and after the special dividend, the special dividend was
accompanied by a share consolidation, which took effect on
29 January 2024, resulting in
shareholders receiving 10 new ordinary shares with a nominal value
of €0.22 each for every 11 existing ordinary shares with a nominal
value of €0.20 each.
To effect
the share consolidation, the Group issued 3 additional ordinary
shares prior to the record date for the share consolidation,
increasing the number of ordinary shares from 485,553,780 ordinary
shares to 485,553,783 ordinary shares, so that the number of the
existing ordinary shares in issue at the time of the consolidation
was exactly divisible by 11, such that there was no remaining
fraction of a share.
Following the share consolidation, the total number of ordinary
shares issued decreased by 44,141,253 ordinary shares from
485,553,783 ordinary shares to 441,412,530 ordinary shares, while
the total nominal value of the share capital of the Group remained
unchanged at €97 million.
|
|
Number
of shares
|
€
million
|
|
At 31
December 20231
|
485,553,780
|
97
|
|
Shares
issued
|
3
|
—
|
|
Effect of
share consolidation
|
(44,141,253)
|
—
|
|
At
31 December
2024
|
441,412,530
|
97
|
Note:
1 There
were no movements in the share capital of Mondi plc in
2023.
11
Borrowings
The primary
sources of the Group’s liquidity include its €3 billion Guaranteed
Euro Medium Term Note Programme, its €750 million Syndicated
Revolving Credit Facility (RCF), which has been increased to €1
billion effective from 2 January
2025, and financing from various banks
and other
credit agencies, thus providing the Group with access
to diverse
sources of debt financing.
The
principal loan arrangements in place are the following:
|
€ million
|
Maturity
|
Interest
rate %
|
2024
|
2023
|
|
Financing
facilities
|
|
|
|
|
|
Syndicated
Revolving Credit Facility1
|
June
2028
|
EURIBOR +
margin
|
750
|
750
|
|
€500
million Eurobond
|
April
2024
|
1.500%
|
—
|
500
|
|
€600
million Eurobond
|
April
2026
|
1.625%
|
600
|
600
|
|
€750
million Eurobond
|
April
2028
|
2.375%
|
750
|
750
|
|
€500
million Eurobond
|
May
2032
|
3.750%
|
500
|
—
|
|
Long-Term
Facility Agreement
|
December
2026
|
EURIBOR +
margin
|
13
|
20
|
|
Other
|
Various
|
Various
|
—
|
4
|
|
Total
committed facilities
|
|
|
2,613
|
2,624
|
|
Drawn
|
|
|
(1,863)
|
(1,870)
|
|
Total
committed facilities available
|
|
|
750
|
754
|
Note:
1 In
December 2024, the Group’s Syndicated
Revolving Credit Facility was increased from a €750 million
facility to a €1 billion facility effective from 2 January 2025.
The Group’s
Eurobonds incur a fixed rate of interest. Swap agreements are
utilised by the Group to raise non-euro-denominated currency to
fund subsidiaries liquidity needs thereby exposing the Group to
floating interest rates.
In
April 2024, the Group repaid its €500
million Eurobond at maturity and, in May
2024, issued a new €500 million 8 year Eurobond maturing in
May 2032 at a coupon of 3.750% per
annum. The new Eurobond was issued under the Group’s Guaranteed
Euro Medium Term Note Programme and the proceeds were used for
general corporate purposes.
The RCF
incorporates key sustainability targets linked to MAP2030,
classifying the facility as a Sustainability Linked Loan. Under the
terms of the agreement, the margin will be adjusted according to
the Group’s performance against specified sustainability
targets.
Short-term
liquidity needs are met by cash and the RCF. As at
31 December
2024, the Group had no financial covenants in any of its
financing facilities.
|
|
2024
|
2023
|
|
€ million
|
Current
|
Non-current
|
Total
|
Current
|
Non-current
|
Total
|
|
Secured
|
|
|
|
|
|
|
|
Lease
liabilities
|
24
|
104
|
128
|
21
|
104
|
125
|
|
Total
secured
|
24
|
104
|
128
|
21
|
104
|
125
|
|
Unsecured
|
|
|
|
|
|
|
|
Bonds
|
—
|
1,842
|
1,842
|
500
|
1,345
|
1,845
|
|
Bank loans
and overdrafts
|
39
|
6
|
45
|
38
|
11
|
49
|
|
Total
unsecured
|
39
|
1,848
|
1,887
|
538
|
1,356
|
1,894
|
|
Total
borrowings
|
63
|
1,952
|
2,015
|
559
|
1,460
|
2,019
|
|
Committed
facilities drawn
|
|
|
1,863
|
|
|
1,870
|
|
Uncommitted
facilities drawn
|
|
|
152
|
|
|
149
|
|
|
|
|
|
|
|
|
12
Retirement
benefits
All
assumptions related to the Group’s defined benefit schemes and
post-retirement medical plan liabilities were re-assessed
individually for the year ended 31 December
2024. Due to changes in assumptions and exchange rate
movements, the net retirement benefits liability increased by €2
million and the net retirement benefits asset decreased by €2
million. The assets backing the defined benefit scheme liabilities
reflect their market values as at 31 December
2024. Net remeasurement losses arising from changes in
assumptions and return on plan assets amounting to €2 million have
been recognised in the condensed consolidated statement of
comprehensive income.
13
Business
combinations
To
31 December
2024
On
5 February 2024, the Group announced
the completion of the acquisition of Hinton Pulp mill in
Alberta (Canada) from West Fraser
Timber Co. Ltd (West Fraser) for an agreed consideration of
USD 5 million, before working capital
adjustments. The mill has the capacity to produce around 250,000
tonnes of pulp per annum and will provide the Group with access to
local, high-quality fibre from a well-established wood basket as
part of a long-term partnership with West Fraser. The Group intends
to invest in the mill to improve productivity and sustainability
performance and, subject to pre-engineering and permitting, expand
the facility primarily with a new kraft paper machine which will
integrate its paper bag operations in the Americas and support
future growth.
Hinton's revenue for the year ended 31 December
2024 was €115 million with a loss after tax of €21 million.
Since the date of acquisition, Hinton's revenue of €102
million and
a loss after tax of €17 million have been included in the condensed
consolidated income
statement.
Details of
the net assets acquired, as adjusted from book to fair value, are
as follows:
|
€ million
|
Fair
value
|
|
Net
assets acquired
|
|
|
Property,
plant and equipment
|
4
|
|
Inventories
|
15
|
|
Trade and
other receivables
|
17
|
|
Total
assets
|
36
|
|
Trade and
other payables
|
(11)
|
|
Deferred
tax liabilities
|
(4)
|
|
Other
provisions
|
(2)
|
|
Total
liabilities
|
(17)
|
|
|
|
|
Net
assets acquired
|
19
|
|
Gain on
bargain purchase before transaction-related costs
|
(13)
|
|
Net
cash paid per condensed consolidated statement of cash
flows
|
6
|
Transaction
costs of €4 million were charged to other net operating expenses in
the condensed consolidated income statement.
The
acquisition is a purchase of assets that constitutes a business
accounted for under IFRS 3, 'Business Combinations'. The purchase
price allocation resulted in a net gain on purchase of €9 million,
net of transaction-related costs, as the fair value of net assets
acquired was in excess of the consideration paid. The gain on
purchase is attributable to the mill’s loss-making operations at
the time of the transaction and the need for investment to improve
productivity and sustainability performance. The gain was
recognised in other net operating expenses in the condensed
consolidated income statement.
The fair
values of assets acquired and liabilities assumed in business
combinations are level 3 measures in terms of the fair value
measurement hierarchy. Property, plant and equipment has been
measured at fair value using relevant valuation methods accepted
under IFRS 13, 'Fair Value Measurement', with related deferred tax
adjustments. Management has considered the impact of environmental
and climate risks on the estimated fair values of Hinton's property, plant and equipment. These
considerations did not have a material impact.
To
31 December
2023
On
12 January 2023, the Group completed
the acquisition of the Duino mill near Trieste (Italy) from the Burgo Group. Details of this
business combination were disclosed in note 25 of the Group’s
Integrated report and financial statements 2023.
14
Consolidated
cash flow analysis
(a)
Reconciliation
of profit before tax to cash generated from
operations
|
€ million
|
2024
|
2023
|
|
Profit
before tax from continuing operations
|
378
|
682
|
|
Depreciation
and amortisation
|
443
|
408
|
|
Impairment
of property, plant and equipment (not included in special
items)
|
—
|
3
|
|
Share-based
payments
|
9
|
9
|
|
Net cash
flow effect of current and prior year special items
|
116
|
17
|
|
Net finance
costs
|
70
|
73
|
|
Net
monetary loss/(gain) arising from hyperinflationary
economies
|
5
|
(2)
|
|
Net loss
from joint ventures
|
3
|
5
|
|
Impairment
of investments in joint ventures
|
—
|
5
|
|
Increase/(decrease)
in provisions
|
13
|
(17)
|
|
Decrease in
net retirement benefits
|
(8)
|
(19)
|
|
Net
movement in working capital
|
(108)
|
229
|
|
(Increase)/decrease
in inventories
|
(70)
|
389
|
|
(Increase)/decrease
in operating receivables
|
(140)
|
56
|
|
Increase/(decrease)
in operating payables
|
102
|
(216)
|
|
Fair value
gains on forestry assets
|
(7)
|
(128)
|
|
Felling
costs
|
92
|
87
|
|
Net gain on
disposal of property, plant and equipment
|
(12)
|
(13)
|
|
Insurance
reimbursements for property damages
|
(13)
|
(17)
|
|
Other
adjustments
|
(11)
|
(10)
|
|
Cash
generated from continuing operations
|
970
|
1,312
|
(b)
Cash
and cash equivalents
|
€ million
|
2024
|
2023
|
|
Cash and
cash equivalents per condensed consolidated statement of financial
position
|
278
|
1,592
|
|
Bank
overdrafts included in short-term borrowings
|
(9)
|
—
|
|
Cash
and cash equivalents per condensed consolidated statement of cash
flows
|
269
|
1,592
|
The cash
and cash equivalents of €278 million (2023: €1,592 million) include
money market funds of €50 million (2023: €840 million)
valued at fair value through profit and loss, with the remaining
balance carried at amortised cost with fair values approximate to
the carrying values presented.
The Group
operates in certain countries where the existence of exchange
controls or access to hard currency may restrict the use of certain
cash balances outside of those countries. These restrictions are
not expected to have any material effect on the Group’s ability to
meet its ongoing obligations.
(c)
Movement
in net debt
The Group’s
net debt position is as follows:
|
€ million
|
Cash
and
cash
equivalents
|
Current
financial asset investments1
|
Debt
due within
1 year2
|
Debt
due
after
1 year
|
Debt-related
derivative financial instruments1
|
Total
net
debt
|
|
At 1
January 2023
|
1,061
|
1
|
(96)
|
(1,970)
|
(7)
|
(1,011)
|
|
Cash
flow
|
336
|
—
|
40
|
—
|
77
|
453
|
|
Cash
movement from continuing operations
|
(248)
|
—
|
—
|
—
|
—
|
(248)
|
|
Proceeds
from borrowings
|
—
|
—
|
(16)
|
—
|
—
|
(16)
|
|
Repayment
of borrowings
|
—
|
—
|
33
|
—
|
—
|
33
|
|
Repayment
of lease liabilities
|
—
|
—
|
22
|
—
|
—
|
22
|
|
Net cash
outflow from debt-related derivative financial
instruments
|
—
|
—
|
—
|
—
|
77
|
77
|
|
Discontinued
operations
|
584
|
—
|
1
|
—
|
—
|
585
|
|
Additions
to lease liabilities
|
—
|
—
|
(14)
|
(18)
|
—
|
(32)
|
|
Disposal of
lease liabilities
|
—
|
—
|
2
|
6
|
—
|
8
|
|
Movement in
unamortised loan costs
|
—
|
—
|
(1)
|
(2)
|
—
|
(3)
|
|
Net
movement in fair value of derivative financial
instruments
|
—
|
—
|
—
|
—
|
(63)
|
(63)
|
|
Reclassification
|
—
|
—
|
(519)
|
519
|
—
|
—
|
|
Elimination
of assets and liabilities previously classified as held for
sale
|
320
|
—
|
(1)
|
(23)
|
—
|
296
|
|
Currency
movements
|
(125)
|
—
|
30
|
28
|
—
|
(67)
|
|
At
31 December
2023
|
1,592
|
1
|
(559)
|
(1,460)
|
7
|
(419)
|
|
Cash
flow
|
(1,311)
|
—
|
535
|
(496)
|
47
|
(1,225)
|
|
Cash
movement from continuing operations
|
(1,311)
|
—
|
—
|
—
|
—
|
(1,311)
|
|
Proceeds
from Eurobonds
|
—
|
—
|
—
|
(496)
|
—
|
(496)
|
|
Repayment
of Eurobonds
|
—
|
—
|
500
|
—
|
—
|
500
|
|
Proceeds
from borrowings
|
—
|
—
|
(9)
|
(215)
|
—
|
(224)
|
|
Repayment
of borrowings
|
—
|
—
|
18
|
215
|
—
|
233
|
|
Repayment
of lease liabilities
|
—
|
—
|
26
|
—
|
—
|
26
|
|
Net cash
outflow from debt-related derivative financial
instruments
|
—
|
—
|
—
|
—
|
47
|
47
|
|
Additions
to lease liabilities
|
—
|
—
|
(11)
|
(19)
|
—
|
(30)
|
|
Disposal of
lease liabilities
|
—
|
—
|
—
|
2
|
—
|
2
|
|
Movement in
unamortised loan costs
|
—
|
—
|
—
|
(2)
|
—
|
(2)
|
|
Net
movement in fair value of derivative financial
instruments
|
—
|
—
|
—
|
—
|
(49)
|
(49)
|
|
Reclassification
|
—
|
—
|
(25)
|
25
|
—
|
—
|
|
Currency
movements
|
(12)
|
(1)
|
6
|
(2)
|
—
|
(9)
|
|
At
31 December
2024
|
269
|
—
|
(54)
|
(1,952)
|
5
|
(1,732)
|
Notes:
1 Included
in financial instruments in the condensed consolidated statement of
financial position.
2 Excludes
bank overdrafts of €9 million (2023: €nil), which are included in
cash and cash equivalents (see note 14b).
The Group
incurred interest expense of €107 million (2023: €122 million) in
relation to bank overdrafts, loans and lease liabilities. Included
in this expense is €35 million (2023: €53 million) relating to
forward exchange rates on derivative contracts and interest paid on
borrowings of €44 million (2023: €50 million).
15
Capital
commitments
As at
31 December
2024, capital expenditure contracted for but not recognised as
liabilities is €372 million (as at 31 December
2023: €634 million).
16
Contingent
liabilities
The Group’s
contingent liabilities as at 31 December
2024 were €nil (2023: €3 million). No acquired contingent
liabilities have been recorded in the Group’s condensed
consolidated statement of financial position for either year
presented.
17
Fair
value measurement
Assets and
liabilities that are measured at fair value, or where the fair
value of financial instruments has been disclosed in the notes to
the condensed consolidated financial statements, are based on the
following fair value measurement hierarchy:
•
Level 1 –
quoted prices (unadjusted) in active markets for identical assets
or liabilities
•
Level 2 –
inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly (that is, as
prices) or indirectly (that is, derived from prices)
•
Level 3 –
inputs for the asset or liability that are not based on observable
market data (that is, unobservable inputs)
The assets
measured at fair value on level 3 of the fair value measurement
hierarchy are the Group’s forestry assets as set out in note 9 and
certain assets acquired or liabilities assumed in business
combinations as set out in note 13.
There have
been no transfers of assets or liabilities between levels of the
fair value hierarchy during the year.
The fair
values of financial instruments that are not traded in an active
market (for example, over-the-counter derivatives) require a degree
of estimation and judgement and are determined using generally
accepted valuation techniques. These valuation techniques maximise
the use of observable market data and rely as little as possible on
Group-specific estimates.
Specific
valuation methodologies used to value financial instruments include
the following:
•
The fair
values of foreign exchange contracts are calculated as the present
value of expected future cash flows based on observable yield
curves and exchange rates.
•
The fair
values of the Group’s commodity price derivatives are calculated as
the present value of expected future cash flows based on observable
market data.
•
Other
techniques, including discounted cash flow analysis, are used to
determine the fair values of other financial
instruments.
Except as
detailed below, the carrying values of financial instruments at
amortised cost as presented in the condensed consolidated financial
statements approximate their fair values.
|
|
Carrying
amount
|
Fair
value
|
|
€ million
|
2024
|
2023
|
2024
|
2023
|
|
Financial
liabilities
|
|
|
|
|
|
Borrowings
|
2,015
|
2,019
|
2,010
|
1,983
|
18
Related
party transactions
The Group
and its subsidiaries, in the ordinary course of business, enter
into various sale, purchase and service transactions with
associated undertakings in which the Group has a material interest.
These related party transactions have been contracted on an arm's
length basis.
Transactions
between Mondi plc and its subsidiaries, which are related parties,
and transactions between its subsidiaries have been eliminated on
consolidation and are not disclosed in this note.
|
|
Joint
ventures
|
|
€ million
|
2024
|
2023
|
|
Sales to
related parties
|
10
|
7
|
|
Purchases
from related parties
|
587
|
663
|
|
Trade and
other receivables from related parties
|
2
|
1
|
|
Trade and
other payables due to related parties
|
72
|
86
|
|
Loans
receivable from related parties
|
11
|
11
|
19
Events
occurring after 31 December
2024
Aside from
the final ordinary dividend proposed for 2024 (see note 8), there
have been no material reportable events since 31 December
2024.
Production
statistics
|
|
|
2024
|
2023
|
|
Continuing
operations
|
|
|
|
|
Containerboard
|
000
tonnes
|
2,345
|
2,312
|
|
Kraft
paper
|
000
tonnes
|
1,233
|
1,085
|
|
Uncoated
fine paper
|
000
tonnes
|
938
|
855
|
|
Pulp
|
000
tonnes
|
3,725
|
3,218
|
|
Internal
consumption
|
000
tonnes
|
3,044
|
2,741
|
|
Market
pulp
|
000
tonnes
|
681
|
477
|
|
Corrugated
solutions
|
million
m2
|
1,899
|
1,880
|
|
Paper
bags
|
million
units
|
5,583
|
5,414
|
|
Consumer
flexibles
|
million
m2
|
1,912
|
1,818
|
|
Functional
paper and films
|
million
m2
|
3,067
|
2,667
|
Exchange
rates
|
|
Average
|
Closing
|
|
Versus
euro
|
2024
|
2023
|
2024
|
2023
|
|
South
African rand (ZAR)
|
19.83
|
19.96
|
19.62
|
20.35
|
|
Czech
koruna (CZK)
|
25.12
|
24.00
|
25.19
|
24.72
|
|
Polish
zloty (PLN)
|
4.31
|
4.54
|
4.28
|
4.34
|
|
Pound
sterling (GBP)
|
0.85
|
0.87
|
0.83
|
0.87
|
|
Turkish
lira (TRY)1
|
35.57
|
25.76
|
36.74
|
32.65
|
|
US dollar
(USD)
|
1.08
|
1.08
|
1.04
|
1.11
|
Note:
1 The
Group has applied hyperinflation accounting for its subsidiaries in
Turkiye.
Alternative
Performance Measures
The Group
presents certain measures of financial performance, position or
cash flows in the condensed consolidated financial statements that
are not defined or specified according to IFRS Accounting Standards
in order to provide additional performance-related measures to its
stakeholders. These measures, referred to as Alternative
Performance Measures (APMs), are prepared
on a consistent basis for all periods presented in this
report.
By their
nature, the APMs used by the Group are not necessarily uniformly
applied by peer companies and therefore may not be comparable with
similarly defined measures and disclosures applied by other
companies. Such measures should not be viewed in isolation or as a
substitute to the equivalent IFRS Accounting Standards
measure.
Internally,
the Group and its operating segments apply the same APMs in a
consistent manner in planning and reporting on performance to
management, the Executive Committee and the Board. Two of the
Group’s APMs, underlying EBITDA and ROCE, link to the Group’s
strategy and form part of the executive directors' and senior
management's remuneration targets.
The most
significant APMs used by the Group are described below, together
with a reconciliation to the equivalent IFRS Accounting Standards
measure. The reconciliations
are based on Group figures and represent the continuing operations
of the Group, unless otherwise stated. The reporting
segment equivalent APMs are measured in a consistent
manner.
|
APM
description and purpose
|
Financial
statement reference
|
Closest
IFRS equivalent measure
|
|
Special
items
|
|
Special
items are generally material, non-recurring items from continuing
operations that exceed €10 million.
The Audit Committee regularly assesses the monetary threshold of
€10 million on a net basis and considers the threshold in the
context of both the Group as a whole and individual operating
segment performance.
The Group
separately discloses special items on the face of the condensed
consolidated income statement to assist its stakeholders in
understanding the underlying financial performance achieved by the
Group on a
basis that is comparable from year to year.
Examples of special item charges or credits include, but are not
limited to, significant restructuring programmes, impairment of
assets or cash-generating units, costs associated with potential
and achieved acquisitions, profits or losses from the disposal of
businesses, and the settlement of significant litigation or
claims.
Subsequent
adjustments to items previously recognised as special items,
including any related credits received subsequently, continue to be
reflected as special items
in future periods even if they do not exceed the quantitative
reporting threshold. Subsequent adjustments to items, or charges
and credits on items that are closely related, which previously did
not qualify for reporting as special items, continue to be reported
in the underlying result even if the cumulative net charge/credit
over the years exceeds the €10 million quantitative reporting
threshold.
|
Note
4
|
None
|
|
|
|
|
|
Underlying
EBITDA
|
|
Operating
profit before special items, depreciation, amortisation and
impairments not recorded as special items provides a measure of the
cash-generating ability of the Group's continuing operations that
is comparable from year to year.
For the
Financial review and the Uncoated Fine Paper business unit review,
the Group has disclosed underlying EBITDA excluding forestry fair
value gain to improve relative comparability.
|
Condensed
consolidated income statement
|
Operating
profit
|
|
|
|
|
|
Underlying
EBITDA margin
|
|
Underlying
EBITDA expressed as a percentage of Group revenue (segment revenue
for operating segments) provides a measure of the cash-generating
ability of the Group's continuing operations relative to
revenue.
|
|
None
|
|
|
|
|
|
APM
calculation:
|
|
|
|
€ million,
unless otherwise stated
|
2024
|
2023
|
|
Underlying
EBITDA (see condensed consolidated income statement)
|
1,049
|
1,201
|
|
Group
revenue (see condensed consolidated income statement)
|
7,416
|
7,330
|
|
Underlying
EBITDA margin (%)
|
14.1
|
16.4
|
|
|
|
|
|
Underlying
operating profit
|
|
|
|
Operating
profit before special items provides a measure of operating
performance of the Group's continuing operations that is comparable
from year to year.
|
Condensed
consolidated income statement
|
Operating
profit
|
|
|
|
|
|
Underlying
profit before tax
|
|
Profit
before tax and special items. Underlying profit before tax provides
a measure of the Group’s continuing operations' profitability
before tax that is comparable from year to year.
|
Condensed
consolidated income statement
|
Profit
before tax
|
|
|
|
|
|
Effective
tax rate
|
|
Underlying
tax charge expressed as a percentage of underlying profit before
tax.
A measure
of the tax charge of the Group's continuing operations relative to
its profit before tax expressed on an underlying basis.
|
|
None
|
|
|
|
|
|
APM
calculation:
|
|
|
|
€ million,
unless otherwise stated
|
2024
|
2023
|
|
Tax charge
before special items (see note 6)
|
117
|
167
|
|
Underlying
profit before tax (see condensed consolidated income
statement)
|
528
|
709
|
|
Effective
tax rate (%)
|
22.2
|
23.6
|
|
|
|
|
|
Underlying
earnings (and per share measure)
|
|
Net profit
after tax before special items arising from the Group's continuing
operations that is attributable to shareholders.
Underlying
earnings (and the related per share measure based on the basic,
weighted average number of ordinary shares outstanding) provides a
measure of the Group's continuing operations’ earnings.
|
Note
7
|
Profit for
the period attributable to shareholders (and per share
measure)
|
|
|
|
|
|
Total
earnings (prior to special items)
|
|
|
|
Net profit
after tax before special items arising from the Group's continuing
and discontinued operations that is attributable to
shareholders.
Total
earnings provides a measure of the Group’s earnings.
|
Note
7
|
Profit for
the period attributable to shareholders
|
|
|
|
|
|
Headline
earnings (and per share measure)
|
|
The
presentation of headline earnings (and the related per share
measure based on the basic, weighted average number of ordinary
shares outstanding) is mandated under the Listings Requirements of
the JSE Limited and is calculated in accordance with Circular
1/2023, ‘Headline Earnings’, as issued by the South African
Institute of Chartered Accountants.
|
Note
7
|
Profit for
the period attributable to shareholders (and per share
measure)
|
|
|
|
|
|
Dividend
cover
|
|
Basic
underlying EPS from continuing operations divided by total ordinary
dividend per share paid and proposed
provides a measure of the Group’s earnings relative to ordinary
dividend payments.
|
|
None
|
|
|
|
|
|
APM
calculation:
|
|
|
|
euro
cents, unless otherwise stated
|
2024
|
2023
|
|
Basic
underlying EPS (see note 7)
|
82.7
|
107.8
|
|
Total
ordinary dividend per share (see note 8)
|
70.0
|
70.0
|
|
Dividend
cover (times)
|
1.2
|
1.5
|
|
|
|
|
|
Capital
employed (and related trailing 12-month average capital
employed)
|
|
Capital
employed comprises total equity and net debt. Trailing 12-month
average capital employed is the
average monthly capital employed over the last 12 months adjusted
for spend on major capital expenditure projects which are not yet
in production.
These
measures provide the level of invested capital in the business.
Trailing 12-month average capital employed is used in the
calculation of return on capital employed.
|
Note
3
|
Total
equity
|
|
|
|
|
|
Return
on capital employed (ROCE)
|
|
Trailing
12-month underlying operating profit, including share of
associates' and joint ventures' net profit/(loss), divided by
trailing 12-month average capital employed. ROCE provides a measure
of the efficient and effective use of capital in the business and
is presented on the basis of the Group's continuing operations for
comparability.
|
|
None
|
|
|
|
|
|
APM
calculation:
|
|
|
|
€ million,
unless otherwise stated
|
2024
|
2023
|
|
Underlying
operating profit (see condensed consolidated income
statement)
|
606
|
790
|
|
Underlying
net loss from joint ventures (see condensed consolidated income
statement)
|
(3)
|
(5)
|
|
Underlying
profit from operations and joint ventures
|
603
|
785
|
|
Trailing
12-month average capital employed of continuing operations (see
note 3)
|
6,283
|
6,135
|
|
ROCE
(%)
|
9.6
|
12.8
|
|
|
|
|
|
Net
debt (and related trailing 12-month average net
debt)
|
|
A measure
comprising short-, medium- and long-term interest-bearing
borrowings and the fair value of debt-related
derivatives less cash and cash equivalents, net of overdrafts, and
current financial asset investments.
Net debt
provides a measure of the Group’s net indebtedness or overall
leverage. Trailing 12-month average net debt is the average monthly
net debt over the last 12 months.
|
Note
14c
|
None
|
|
|
|
|
|
Net
debt to underlying EBITDA
|
|
Net debt
divided by trailing 12-month underlying EBITDA. A measure of the
Group’s net indebtedness relative to its cash-generating
ability.
|
|
None
|
|
|
|
|
|
APM
calculation:
|
|
|
|
€ million,
unless otherwise stated
|
2024
|
2023
|
|
Net debt
(see note 14c)
|
1,732
|
419
|
|
Underlying
EBITDA (see condensed consolidated income statement)
|
1,049
|
1,201
|
|
Net
debt to underlying EBITDA (times)
|
1.7
|
0.3
|
Forward-looking
statements
This
document includes forward-looking statements. All statements other
than statements of historical facts included herein, including,
without limitation, those regarding Mondi’s financial position,
business strategy, market growth and developments, expectations of
growth and profitability and plans and objectives of management for
future operations, are forward-looking statements. Forward-looking
statements are sometimes identified by the use of forward-looking
terminology such as “believe”, “expects”, “may”, “will”, “could”,
“should”, “shall”, “risk”, “intends”, “estimates”, “aims”, “plans”,
“predicts”, “continues”, “assumes”, “positioned” or “anticipates”
or the negative thereof, other variations thereon or comparable
terminology. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of Mondi, or industry
results, to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. Such forward-looking statements and
other statements contained in this document regarding matters that
are not historical facts involve predictions and are based on
numerous assumptions regarding Mondi’s present and future business
strategies and the environment in which Mondi will operate in the
future. These forward-looking statements speak only as of the date
on which they are made.
No
assurance can be given that such future results will be achieved;
various factors could cause actual future results, performance or
events to differ materially from those described in these
statements. Such factors include in particular but without any
limitation: (1) operating factors, such as continued success of
manufacturing activities and the achievement of efficiencies
therein, continued success of product development plans and
targets, changes in the degree of protection created by Mondi’s
patents and other intellectual property rights and the availability
of capital on acceptable terms; (2) industry conditions, such as
strength of product demand, intensity of competition, prevailing
and future global market prices for Mondi’s products and raw
materials and the pricing pressures thereto, financial condition of
the customers, suppliers and the competitors of Mondi and potential
introduction of competing products and technologies by competitors;
and (3) general economic conditions, such as rates of economic
growth in Mondi’s principal geographical markets or fluctuations of
exchange rates and interest rates.
Mondi
expressly disclaims a) any warranty or liability as to accuracy or
completeness of the information provided herein; and b) any
obligation or undertaking to review or confirm analysts’
expectations or estimates or to update any forward-looking
statements to reflect any change in Mondi’s expectations or any
events that occur or circumstances that arise after the date of
making any forward-looking statements, unless required to do so by
applicable law or any regulatory body applicable to Mondi,
including the JSE Limited and the LSE. Any reference to future
financial performance included in this announcement has not been
reviewed or reported on by the Group’s auditors.
Editors’
notes
Mondi is a
global leader in packaging and paper, contributing to a better
world by producing products that are sustainable by design. We
employ 22,000 people in more than 30 countries and operate an
integrated business with expertise spanning the entire value chain,
enabling us to offer our customers a broad range of innovative
solutions for consumer and industrial end-use applications.
Sustainability is at the centre of our strategy, with our ambitious
commitments to 2030 focused on circular driven solutions, created
by empowered people, taking action on climate.
In 2024,
Mondi had revenues of €7.4 billion and underlying EBITDA of €1.0
billion. Mondi is listed on the London Stock Exchange in the ESCC
category (MNDI), where the Group is a FTSE100 constituent. It also
has a secondary listing on the JSE Limited (MNP).
mondigroup.com
Sponsor in
South Africa: Merrill Lynch South Africa Proprietary Limited t/a
BofA Securities.
