Higher prices for Mondi’s products underpin a positive outlook for the international packaging, paper and pulp manufacturer after it reported a “robust performance” in the first half of 2017, say industry analysts. Revenue rose 8% to €3.6bn in the six months from the same period in 2016. But underlying operating profit of €497m came off €32m. This was mainly driven by a substantially lower forestry fair-value gain in SA and also the effects of shutting down mills for maintenance. However, return on capital employed stayed strong at 18.7%. Cash generated from operations of €592m, down from €620m in the quarter in 2016, included an increase in working capital.

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.