Performance highlights
Mondi has delivered a solid full-year performance in very challenging market conditions. The early part of the year was particularly difficult for our European operations, characterised by sharp volume declines and consequent pricing pressures. It was, however, pleasing to see the subsequent recovery in demand, which supported price increases during the fourth quarter in various packaging segments. Our initiatives to prioritise cash flow generation in light of the downturn in trading have been very successful, evidenced by the reduction in net debt over the course of the year, while still funding the two major capital expenditure projects.
- Resilient performance in challenging circumstances
- Clear pick-up in European trading conditions in the final quarter
- Strong performance from European Uncoated Fine Paper business throughout the year
- Substantial cash generation from operations of €867 million
- Strong cash management with net debt down to €1.5 billion despite around €300 million spent on major capital projects
- Delivered cost savings of €251 million, significantly in excess of target
- Achieved very strong control of working capital, resulting in a net working capital inflow of €248 million for the year
- Polish recycled containerboard machine and box plant projects successfully completed and significant progress on Russian project
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[Page 2, Annual report and accounts 2009]
Annual report and accounts 2009 Mondi Group