19th Feb 2026 07:52
(Alliance News) - Mondi PLC on Thursday slashed its dividend as the packaging firm continued to grapple with "prolonged cyclical downturn" facing the industry.
The Weybridge, England-based packaging firm chopped its final dividend to 4.92 euro cents in 2025, down sharply from 46.67 cents in 2024, reducing the total payout for 2025 to 28.25 cents from 70 cents.
Analysts had warned that a dividend cut was priced in already. Investors have grown increasingly frustrated at Mondi's poor performance. Its shares have lost 28% of its value in London and around 35% in Johannesburg over the past 12 months.
Shares in Mondi were down 0.3% to ZAR200.44 in Johannesburg.
For 2025, Mondi reported a 29% slump in pretax profit to EUR269 million from EUR378 million in 2024.
But revenue was EUR7.66 billion, up 3.2% from EUR7.42 billion. Underlying earnings before interest, taxes, depreciation and amortisation were down 4.7% to EUR1.00 billion from EUR1.05 billion, beating expectations.
Jefferies expected Mondi to report a 2025 underlying Ebitda of EUR990 million.
Earnings per share dropped 24% to 37.4 euro cents from 49.1 cents, while basic headline EPS declined 21% to 48.1 cents from 60.8 cents.
Mondi Chief Executive Officer Andrew King said the industry continued to work through a "prolonged cyclical downturn", yet it delivered a resilient full-year financial performance.
"This reflects the strength of our cost advantaged and integrated assets, our quality product offering, the commitment of our people and the targeted strategic actions taken to enhance our competitive advantage," King said.
Going into 2026, Mondi said it remains unclear when geopolitical and macroeconomic conditions will improve.
Paper prices are modestly lower, on average, than those seen in the final quarter of 2025, it said.
Looking ahead, Mondi said it is strongly positioned to capture the upside as market conditions improve.
By Artwell Dlamini, Alliance News senior reporter South Africa
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