Results for the six months ended 30 June 2023.
Delivering in challenging markets. Investing for future growth.
Mondi, a global leader in sustainable packaging and paper, today announces its results for the six months to 30 June 2023. Performance from the Group's continuing operations exclude its Russian operations.
1. Strong delivery from continuing operations against the backdrop of challenging market conditions
- Underlying EBITDA of €680 million, down 28% (H1 2022: €942 million)
- Basic underlying earnings per share (EPS) of 67.0 euro cents, down 32% (H1 2022: 98.7 euro cents)
- Improved cash generated from operations of €554 million (H1 2022: €519 million)
- Robust balance sheet at 0.8 times net debt to underlying EBITDA (31 December 2022: 0.5 times)
- Return on capital employed (ROCE) of 19.1% (31 December 2022: 23.7%)
2. Delivering value accretive growth, sustainably
- €1.2 billion of expansionary projects on track and on budget
- Announced acquisition of Hinton Pulp mill (Canada)
- Good progress in delivering on our MAP2030 sustainability commitments
3. Completed sale of three Russian packaging converting operations with proceeds of €30 million
4. Sale process of Syktyvkar mill ongoing within an evolving political and regulatory environment
5. Interim dividend declared of 23.33 euro cents per share (H1 2022: 21.67 euro cents per share)
Mondi's performance in the first half of 2023 reflects a strong delivery against a backdrop of challenging market conditions. Whilst underlying EBITDA was lower, the business exhibited its strong cash generative characteristics, improving cash generation. We maintained a robust balance sheet and are continuing to invest in our pipeline of expansionary projects.
So far in 2023, demand and prices have declined sequentially with the exception of containerboard prices which stabilised in the later part of the half year. We saw some benefit from lower input costs which continue to ease as we progress into the third quarter of the year. We remain focused on improving productivity and efficiency and delivering our MAP2030 commitments, while expanding capacity in our growing packaging segments. We have a compelling portfolio of sustainable packaging and paper products, scale and a resilient business model, which position us well to deliver attractive returns and sustainable value accretive growth.
Andrew King, Mondi Group Chief Executive Officer.