Mondi, the multinational packaging and paper group, has reported underlying EBITDA of €1.85 billion in its 2022 financial year, up 60% (2021: €1.16 billion), with underlying EBITDA margin of 20.8% (2021: 16.6%).
The performance excludes its Russian operations, the group said.
Mondi said it achieved higher average selling prices in the period, which more than offset materially higher input costs.
Its corrugated packaging business reported increased underlying EBITDA by 22% to €662 million (2021: €543 million), while flexible packaging grew underlying EBITDA 41% to €797 million (2021: €567 million).
Uncoated fine paper significantly improved underlying EBITDA, delivering €427 million in the year (2021: €55 million). Mondi claims this was in part due to a higher non-cash forestry fair value gain of €169 million (2021: loss of €7 million).
'Tight Market Conditions'
Group revenue of €8.9 billion was up 28% on the prior year. Mondi saw volume growth in containerboard, kraft paper and pulp sales following continued investment across its portfolio, with lower volumes in corrugated solutions and uncoated fine paper.
Mondi said selling price increases were achieved in all businesses in response to tight market conditions and inflationary pressures. The group reported profit before tax of €1.56 billion, up 119% (2021: €712 million).
Read More: Mondi To Invest €280m In Corrugated Packaging
Growing Customer Demand
Mondi said a €1 billion expansionary capital investment pipeline is on track to deliver growth across its packaging businesses.
The company noted its 'unique platform, cash generation and strong balance sheet' has positioned it to meet growing customer demand for sustainable packaging and investment.
'Growing Markets'
"We continue to accelerate our growth ambitions, making good progress with our significant expansionary capital investment pipeline," said Andrew King, Mondi Group chief executive.
"Projects focus on expanding capacity to serve growing markets, productivity improvements, enhancing cost competitiveness and delivering sustainability benefits. Particularly pleasing is the strong growth we are seeing in our market-leading Flexible Packaging business.
"Our innovative product offering means we can use paper where possible and plastic when useful to provide customers with a uniquely broad choice of flexible packaging solutions to meet their needs."
© 2022 European Supermarket Magazine – your source for the latest Packaging and Design news. Article by Robert McHugh. Click subscribe to sign up to ESM: European Supermarket Magazine.
