Mondi FY profit surges

21st Feb 2011 07:26

South African paper and packaging firm Mondi increased full year pre-tax four fold and upped its dividend as demand continues to pickup from financial crisis levels. Pre-tax profit rose to €372m for the year ended 31 December 2010 from €49m a year earlier. Group revenue increased 18% to €6.2bn. "Demand growth over the past 18 months has been very encouraging, with volumes in most grades and geographic regions back at satisfactory levels," said Mondi chief executive David Hathorn in a company statement.He said demand is expected to grow further this year but at a slower rate."The general economic recovery also brings cost pressures," Hathorn cautioned but added, "We are confident that the group's integrated low cost position, focus on performance, and the contribution from the major investments made through the down cycle position the business well for the future."Mondi declared a final dividend of 16.5 euro cents per share.