23rd Feb 2023 09:30
(Alliance News) - Mondi PLC on Thursday announced a surge in profit in 2022 which outperformed against analyst expectations, while cautioning on 2023.
The Weybridge, England-based paper and packaging firm reported a pretax profit of EUR1.56 billion in 2022, up from EUR712 million in 2021. Revenue jumped 28% to EUR8.90 billion from EUR6.97 billion. Mondi said its report excluded its discontinued Russia operations.
Mondi posted earnings before interest, tax, depreciation and amortisation of EUR1.85 billion, beating the EUR1.83 billion expected by analysts at stockbroker Davy by 1.0%. Further, it beat expectations by Jefferies analysts of EUR1.81 billion by 2.1%.
The company declared a total dividend of 70.0 euro cents, up 7.7% from 65.0 a year ago.
Meanwhile, Mondi said its discontinued Russia business revenue in 2022 was EUR1.27 billion, up 32% from EUR961 million in 2021. Pretax profit in Russia grew 32% to EUR358 million from EUR271 million.
Mondi said the total assets held for sale regarding its Russian assets were at EUR1.38 billion. The value of Mondi's Russia business was EUR1.76 billion in August. Jefferies analysts estimate the current value at EUR1.4 billion.
Looking ahead, Mondi said that macroeconomic uncertainties remain uncertain. It noted a decline in input costs amid a softer demand and pricing. The company added that it continues to invest to strengthen its market positions.
Mondi shares fell 7.4% to 1,369.00 pence each in London on Thursday morning, and were down 4.6% to ZAR306.29 in Johannesburg.
By Tom Budszus, Alliance News reporter
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