28th Feb 2014 08:07
LONDON (Alliance News) -Mondi PLC said Friday underlying operating profit was up 22% for the year, convincingly beating 2012 results, as the firm delivered a "record financial performance."
The international packaging and paper company leads the FTSE 100 after it said underlying operating profit came in at EUR699 million, up 22% from the EUR574 million reported in 2012, boosted somewhat by its low cost position and exposure to higher growth markets.
The firm last week said it expected its final underlying operating profit figure to beat the EUR574 million recorded in 2012 and that it was confident to meet its expectations for the full-year, after reporting a big uptick in its underlying operating profit for the third quarter.
In its results for the year to December 31, 2013, Mondi said group revenue came in 12% higher that 2012, reaching EUR6.48 billion from EUR5.80 billion.
Earnings before interest, taxation, depreciation and amortisation for the year was up 15% on last year at EUR1.07 billion from EUR927 million.
Mondi said its underlying earnings per share for the year were boosted by the group's performance, up 37% to 95 euro cents per share.
Profit before tax rose a heady 36% to EUR499 million, from EUR368 million last year.
Return on capital expenditure also reported a big uptick, up 170 basis points, a 15.3% increase. Also, said Mondi, for the first time, cash generated from operations exceeded EUR1 billion for the first time, at EUR1.04 billion from EUR849 million last year.
During the year, Mondi said it has continued to successfully integrate packaging acquisitions made in 2012, and that synergies within this programme continue, adding that "strategic capital investments" remain on track for the coming year, after completing a number of projects.
The first added that it has worked on de-leveraging during the reporting period, with net debt down by EUR251 million to EUR1.62 billion.
David Hathorn, Mondi Group Chief Executive, said, While growth in demand for the Group's key products has remained generally subdued, supply-side constraint has been supportive of pricing. It is particularly pleasing to see how well the integration of the businesses acquired in late 2012 has gone, with synergies delivered in line with target. Despite a difficult trading environment, the new business segment of Consumer Packaging has demonstrated its resilience. With order books strengthening in the new year and the structural growth dynamics still very much in place, we
remain confident in the future development of this business."
Hathorn notes that the trading environment in Mondi's main markets remains mixed, however, the increase in the price of recycled containerboard seen in the second half of 2013 on solid demand growth remains encouraging and should lend support to our other key containerboard grades. "However, price pressure in most virgin paper grades in the second half of 2013 means that we start the new year with lower pricing than the average for 2013," he said.
Looking ahead, the firm is mindful of the challenges it faces due to recent exchange rate volatility in several of its key emerging markets, however many of these allow the firm to benefit from the
devaluation of these currencies relative to the euro.
Shares in the international packaging and paper company were trading up 2.7% at 1,065.00 pence per share shortly after the market open, leading the FTSE 100 gainers.
By Alice Attwood; [email protected]; @AliceAtAlliance
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