(Alliance News) - Mondi PLC on Thursday said it expected organic growth projects to deliver a meaningful earnings boost from 2025 as it reported a decline in profit and revenue for last year.
The Weybridge, Surrey-based packaging and paper company said pretax profit dropped 56% to EUR682 million in 2023 from EUR1.56 billion in 2022.
Revenue declined 18% to EUR7.33 billion from EUR8.90 billion, citing softer market demand and the impact of customer destocking.
Underlying earnings before interest, tax, depreciation and amortisation contracted 35% to EUR1.20 billion from EUR1.85 billion.
Return on capital deployed deteriorated to 12.8% in 2023 from 23.7% a year prior.
Mondi recommended a final dividend of 46.67 euro cents per share, bringing the total to an unchanged 70.0c.
Looking ahead, Chief Executive Officer Andrew King said: "We continue to make good progress in delivering our organic growth projects, which remain on track and on budget. We expect these projects to deliver a meaningful EBITDA contribution from 2025."
He added: "We remain well positioned to capitalise as demand improves with our strong operational leverage and organic growth investment projects."
Mondi shares rose 1.7% to 1,409.00 pence each on Thursday morning in London, while in Johannesburg, they were 2.5% higher at ZAR337.23 each.
By Tom Budszus, Alliance News slot editor
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Mondi (MNDI)