(Alliance News) - Mondi PLC on Thursday reported a fall in annual profit but showed its confidence going forward by upping its shareholder payout for 2020.
The Addlestone, England-based paper and packaging firm posted a pretax profit for 2020 of EUR770 million, falling 30% from EUR1.10 billion the year prior.
Underlying earnings before interest, tax, depreciation and amortisation dropped 18% to EUR1.35 billion from EUR1.66 billion, but came in above consensus expectations of GBP1.32 billion.
Revenue decreased 8.4% to EUR6.66 billion from EUR7.27 billion. Revenue was down due to a combination of lower average selling prices and negative currency effects, the company said.
"Mondi delivered a robust performance in a challenging trading environment, having started the year with lower pricing coupled with the difficulties brought by the Covid-19 pandemic and related lockdown measures in the markets where we operate," Mondi said.
"The packaging businesses delivered strongly and we are pleased with their strengthened order books in the second half and recent price increases being implemented in most paper grades," the company added.
Mondi declared a final dividend of 41.0 euro cents per share, bringing the annual total payout to 60.0 cents per share, up 5.3% from the prior year's 57.0 cents per share.
"Looking ahead, although the near-term macroeconomic outlook continues to be uncertain, we remain confident in the structural growth drivers in the packaging sectors in which we operate and the strength of our paper position. We are seeing strong order books supporting price increases in most packaging and pulp grades, and are encouraged by the improving uncoated fine paper demand. We are planning longer project-related maintenance shuts and are seeing input cost pressures and currency headwinds, although the benefits from our capital expenditure programme will continue to support our performance," Mondi said.
Mondi shares were up 2.8% at ZAR377.03 each in Johannesburg on Thursday morning, and were up 0.7% at 1,814.12 pence each in London.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Mondi (MNDI)