Higher volumes and selling prices boost Mondi’s full-year earnings

Packaging company Mondi reported 11% year-on-year growth in underlying EBITDA to €1.5 billion in its fiscal year 2021, driven by volumes of sales and higher selling prices amid inflationary cost pressures.

Group revenue increased 16% year-on-year to €7.7 billion, while underlying operating income was €1.1 billion, up 15 % year-on-year.

Andrew King, Mondi Group Managing Director, said: “Our vertical integration, the agility of our operations and the collaboration with our customers enabled us to meet growing demand at a time when supply chains were under pressure. in the whole world.

“We have implemented price increases across all of our businesses and, in a context of rising raw material costs, we have demonstrated good cost control. Our focus on the safety and protection of the well-being of our employees remains our priority. »

Divisional Performance

The company saw volume growth in its corrugated packaging, flexible packaging and uncoated freesheet businesses

The flexible packaging unit was driven by growth in retail usage, particularly in paper shopping, e-commerce bags and consumer applications, such as food and pet food. company.

Demand for corrugated packaging remained strong throughout the year, with growth across all end uses, including e-commerce and FMCG applications.

Other Highlights

Mondi added that selling prices were up across the business, especially in corrugated packaging.

Input costs increased significantly year-on-year, particularly for energy, resins, recycled paper and transportation.

The company expects energy costs to remain high for some time in the future.

Mondi’s pulp and paper mills meet most of its energy needs internally, with biomass sources accounting for approximately 65% ​​of the fuels used in this process.

Read more: Mondi to sell its personal care business for 615 million euros

Outlook

The company hopes to make progress in 2020, but has warned of continued inflationary pressures on its cost base due to geopolitical and macroeconomic uncertainties.

The company expects to benefit from price increases implemented in 2021 and early 2022, shorter planned maintenance shutdowns and contribution from its capital investment program.

© 2022 European supermarket magazine – your source for the latest packaging news. Article by Dayeeta Das. Click on subscribe register for ESM: European Supermarket Magazine.

About Patrick K. Moon

Check Also

Walmart is selling a ROBOT vacuum cleaner that cleans your house on its own and saves you $55

IF YOU rarely have time to clean your house, this affordable robot vacuum might be …