Mondi to cash in on eco-friendly alternatives
As awareness of plastic waste grows, the packaging group is set to cash in with eco-friendly alternatives
Over the past decade, Mondi’s strategic focus has been on building capacity, driving efficiency and making well-executed acquisitions. The strategy is paying off for the €7.5bn annual revenue paper packaging group. Mondi showed its form in its half-year to June, roaring in with pretax profit up 29% at €590m, and EPS up 26%. "It was a phenomenal performance," says Ricco Friedrich of Denker Capital. "There is little you can fault [the company] on." Mondi’s profitability also continued to improve in the half-year. Reflecting this, return on capital, at a solid 21.3%, was up from 18.5% in the previous half-year. This figure was just 7.6% at the time of Mondi’s unbundling by Anglo American in 2007. Rising returns on capital enabled Mondi to buck the negative market conditions that prevailed until very recently. The group’s operating profit grew 8% a year and dividends 15% a year between 2013 and 2017. A long-awaited economic upturn in Europe, a region crucial to Mondi’s performance, is a...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.