Packaging companies: Mondi gets first prize
The packaging company’s performance has been outstanding in a sector that faces many difficulties, writes Stafford Thomas
Investors who chose to back the packaging sector at the start of 2015 have had outcomes ranging from outstanding to disastrous. It all depended on the company they picked.Had they gone for Nampak, once up there with the bluest of blue chips, they would have watched the outcome in horror, as its share price went on to slump more than 60%.Mpact would also have given them little reason to rejoice. Though its share price did rise initially during the first nine months of 2015 it later dived, and ended almost 40% down on its January 2015 level.The packaging company to have backed at the start of 2015 turned out to be Mondi, the global heavyweight with an annual revenue of €7bn. It rewarded its shareholders with a doubling of its share price.Mondi, which is focused on paper packaging and is dual listed on the London Stock Exchange and JSE, has earned its strong market following by delivering consistent growth. Over its past four financial years, up to December 2017, Mondi delivered EPS gr...
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