Low costs drive record 2013 results for Mondi

28th Feb 2014 07:38

Mondi Group, the international packaging and paper company, delivered a strong rise in annual pre-tax profit, driven by low costs and exposure to higher growth markets. On a 12% rise in revenue to €6,476m, pre-tax profit leapt 36% from €368m to €499m. Basic earnings per share rose from 50.1 cents to 79.8 cents. Underlying earning before interest, tax, depreciation and amortisation (EBITDA) jumped 15% from €927 to €1,068m. Return on capital employed, a key performance metric for Mondi, was 15.3%, a record for the group despite the dilutive effect of the acquisitions made in 2012.Mondi Group Chief Executive, David Hathorn, said: "It is particularly pleasing to see how well the integration of the business acquired in late 2012 has gone, with synergies delivered in line with target. Despite a difficult trading environment, the new 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."The trading environment in the group's main markets remains mixed. The increase in the price of recycled containerboard in the second half of 2013 on solid demand growth is 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."In the near-term, the outlook for pricing is largely dependent on the strength of the European macroeconomic recovery, he further explained. NR