6th Aug 2020 09:27
(Alliance News) - Mondi PLC on Thursday said it is resuming dividend payments despite a double-digit profit fall in the first half of 2020.
The packaging and paper company said it has delivered a robust financial performance in a challenging environment.
For the six months to the end of June, revenue fell 8.4% to EUR3.45 billion from EUR3.77 billion a year earlier, resulting in pretax profit of EUR466 million, down 26% from EUR632 million.
Mondi chopped its dividend for the half-year by 30% to 19.00 euro cents per share from 27.28 cents.
In addition, the company said it will pay a 29.75 euro cents per share dividend relating to 2019.
Going forward, Mondi said it is "well positioned" for recovery with resilient business model, cost-advantaged asset base, strong balance sheet and unique portfolio of sustainable packaging solutions.
"Going into the second half of 2020, heightened macro-economic uncertainties remain. Pricing across our key pulp and paper grades is below or in line with the average of the first half. Demand for packaging daily essentials remains robust while we continue to see weakness in certain industrial end-uses," said Chief Executive Andrew King.
"Uncoated fine paper order books have picked up from the lows seen in the second quarter, albeit we do not expect a near-term recovery to pre-pandemic levels. We have rescheduled planned mill maintenance shuts which will have an impact on the second half of the year," added King.
Mondi shares were trading 4.3% higher in London on Thursday at 1,486.00 pence each, while in Johannesburg the stock was up 7.0% at ZAR342.20 a share.
By Evelina Grecenko; [email protected]
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