REG-Mondi Plc: Final Results
20/02/2025 07:15
Mondi plc
(Incorporated in England and Wales)
(Registered number: 6209386)
LEI: 213800LOZA69QFDC9N34
LSE share code: MNDI ISIN: GB00BMWC6P49
JSE share code: MNP
20 February 2025
Full year results for the year ended 31 December 2024
Mondi, a global leader in the production of sustainable packaging and paper,
today announces its results for the 12 months to 31 December 2024.
Highlights
• Resilient performance in line with our expectations
• Underlying EBITDA of €1,049 million, including €7
million forestry fair value gain (2023: €1,201 million including €128
million forestry fair value gain)
• Delivering on our growth strategy
• Started up five major capacity expansion projects – on
time and within budget – including the new paper machine at Steti (Czech
Republic) that commenced operations ahead of plan in December 2024
• Completed the acquisition of Hinton pulp mill (Canada)
• Agreed acquisition of Schumacher’s Western Europe
Packaging Assets – on track to complete in H1 2025
• Supporting shareholder returns
• €1.60 per share special dividend paid in February
2024, returning net proceeds from sale of the Group’s Russian assets
• Recommended total ordinary dividend of 70.0 euro cents
per share – in line with 2023
Financial summary
€ million, unless otherwise stated Year ended 31 December 2024 Year ended 31 December 2023 Change % Six months ended 31 December 2024 (H2 2024) Six months ended 30 June 2024 (H1 2024)
From continuing operations
Group revenue 7,416 7,330 1 3,677 3,739
Underlying EBITDA 1 1,049 1,201 (13) 484 565
Forestry fair value gain / (loss) 7 128 (42) 49
Underlying EBITDA excluding forestry fair value gain 1 1,042 1,073 526 516
Underlying EBITDA margin 1 14.1% 16.4% 13.2% 15.1%
Profit before tax 378 682 (45)
Basic underlying earnings per share (euro cents) 1 82.7 107.8 (23)
Basic earnings per share (euro cents) 49.1 103.5 (53)
Total ordinary dividend per share (euro cents) 70.0 70.0 —
Special dividend per share (euro cents) 160.0
Cash generated from operations 970 1,312 (26)
Net debt to underlying EBITDA (times) 1 1.7 0.3
Return on capital employed (ROCE) 1 9.6% 12.8%
Note:
1 The Group presents certain measures that are not defined or specified
according to International Financial Reporting Standards. Refer to the
Alternative Performance Measures (APMs) section at the end of this document
for further detail.
Andrew King, Mondi Group Chief Executive Officer, commented:
“Mondi demonstrated resilience through the year in the face of ongoing
difficult trading conditions, characterised by soft demand and a challenging
pricing environment. This resilience highlights the strength of our
cost-competitive, strategically located integrated assets and our great
people. Furthermore, our ability to adapt with agility and flexibility to
market uncertainties, combined with our unwavering focus on product quality,
reliability and innovation in offering a diverse portfolio of sustainable
packaging and paper solutions, has been central to delivering value to our
stakeholders.
“In 2024 Mondi successfully started up five major capacity expansion
projects on time and within budget building a strong platform for growth. The
largest of these, the new paper machine at Steti (Czech Republic), commenced
operations ahead of schedule in December. We are very appreciative of the
commitment of our colleagues who have worked tirelessly over the last few
years to deliver these projects. Our focus now turns to executing our
operational and commercial strategy and leveraging our expanded product
offering.
“Disciplined capital allocation to deliver value accretive growth remains a
strategic priority and, alongside our investment in organic growth
opportunities, we were pleased to announce the acquisition of the Western
Europe Packaging Assets of Schumacher Packaging, which will expand our
geographic reach and deliver integration benefits in our Corrugated Packaging
business.
"Reflecting the importance of shareholder returns and our continued confidence
in the future of the business, the Board has recommended a total ordinary
dividend for 2024 in line with last year, at 70.0 euro cents per share.
"As we move into 2025, while significant macroeconomic and geopolitical
uncertainties remain, we are currently seeing improving order books across our
packaging businesses and are implementing price increases across our range of
packaging paper grades. With our culture of continuous improvement, we are
focused on managing costs and driving productivity, alongside ramping up our
new capacity expansion projects.
“The demand for sustainable products is providing many opportunities for
Mondi and is a key driver of our growth. Our investments over the last few
years, enhancing our unique packaging and paper platform and product offering
for our customers, will support this growth.”
Enquiries
Investors/analysts:
Fiona Lawrence +44 742 587 8683
Mondi Group: Head of Investor Relations
Media:
Chris Gurney +44 799 004 3764
Mondi Group: Head of Corporate Communication
Richard Mountain +44 790 968 4466
FTI Consulting
Results presentation details
A webinar will be held today at 09:00 (GMT), 10:00 (CET), 11:00 (SAST).
Event registration link:
https://storm-virtual-uk.zoom.us/webinar/register/WN_NnKIKisrTvW7KFhK6CXLBA
Once registered, you will receive a confirmation email from ‘MONDI Events’
with the webinar link and ID.
A replay will be available on our website within a couple hours after the end
of the live results presentation at:
https://www.mondigroup.com/investors/results-reports-and-presentations/
For any queries, please email ir@mondigroup.com
Delivering on our strategy
Group performance review
Mondi demonstrated resilience during the year delivering an underlying EBITDA
of €1,049 million, achieved against a backdrop of softness in demand and a
challenging pricing environment. This performance highlights the strength of
our cost-competitive, strategically located integrated assets and our great
people. Furthermore, our ability to adapt with agility and flexibility to
market uncertainties, combined with our unwavering focus on product quality,
reliability and innovation in offering a diverse portfolio of sustainable
packaging and paper solutions, has been central to delivering value to our
stakeholders.
2024 started with some encouraging signs of recovery, with restocking and
price increases across all our paper grades combined with lower input costs.
As the year progressed the market recovery faltered with many of our markets
experiencing a lacklustre demand environment resulting in prices first
stabilising and then declining into the end of the year.
Underlying EBITDA of €1,049 million was 13% below last year primarily due
to the significantly lower forestry fair value gain in 2024 of €7 million
and a €32 million one-off currency loss recognised in the first half of 2024
from the devaluation of the Egyptian pound (2023: €1,201 million, forestry
fair value gain of €128 million). Volume growth and lower wood, energy and
chemical costs offset lower average prices and inflationary increases in
operating costs.
Corrugated Packaging delivered an improved performance in the second half of
the year when compared to the first half of the year. Margin expansion and an
improvement in underlying EBITDA in the second half were driven by higher
average selling prices which more than offset lower volumes as a result of a
higher number of scheduled mill maintenance shuts compared to the first half.
Excluding the one-off currency loss in the first half, Flexible Packaging's
underlying EBITDA was down in the second half as higher average selling prices
through the second half were offset by lower volumes and higher fixed costs
from scheduled mill maintenance shuts. After a strong start to the year,
Uncoated Fine Paper had a weaker second half of the year due to a forestry
fair value loss, lower prices and scheduled mill maintenance shut impacts.
Basic underlying earnings per share were 82.7 euro cents (2023: 107.8 euro
cents) reflecting lower profitability.
Special item pre-tax charges in the year were €150 million which included
€110 million of closure costs at the Stambolijski kraft paper mill in
Bulgaria.
Over the last three years Mondi has undertaken a meaningful capital
expenditure programme across both corrugated and flexible packaging mills and
converting plants investing €1.2 billion in total to expand capacity,
increase cost competitiveness and improve our environmental footprint. By the
end of 2024 80% of the investment had been completed – on time and within
budget. Five of the major capacity expansion projects, including the new paper
machine at Steti (Czech Republic) which commenced operations in December 2024,
are now operational. Duino (Italy) remains on track to complete in the first
half of 2025. Our focus turns to executing our operational and commercial
strategy ensuring all these projects ramp up capacity efficiently to maximise
value from our investments and deliver mid-teen returns through cycle.
Return on capital employed was 9.6% (2023: 12.8%), reflecting the ongoing
challenging trading conditions, the significantly lower forestry fair value
gain and a one-off currency loss from the devaluation of the Egyptian pound.
Maintaining a strong and flexible balance sheet, reflected in an investment
grade credit rating, coupled with strong cash generation, enables the Group to
continue investing through the cycle alongside paying dividends to
shareholders. Cash generated from operations was €970 million, a reduction
on the prior year (2023: €1,312 million) due to working capital movements.
Net debt to underlying EBITDA at 31 December 2024 was 1.7 times (31 December
2023: 0.3 times) as the business continued to invest in its meaningful capital
expenditure programme. We are on track to complete the acquisition of the
Western Europe Packaging Assets of Schumacher Packaging, for an enterprise
value of €634 million, in the first half of 2025, which will increase
leverage in the short term.
The Board has recommended paying a total ordinary dividend for 2024 in line
with last year, at 70.0 euro cents per share, reflecting our continued
confidence in the future of our business.
Delivering value accretive growth, sustainably
Mondi aims to deliver value accretive growth for all our stakeholders by
making packaging and paper solutions that are sustainable by design. We
leverage our integrated business model to maintain our market leading
positions, meet evolving customer preferences and contribute towards the
transition to a circular economy.
In 2024 Mondi delivered further progress across each of its four strategic
pillars: drive performance along the value chain, invest in quality assets,
partner with our customers, and empower our people. Sustainability is core to
Mondi’s strategy, and we have continued to make progress against our
commitments through our Mondi Action Plan 2030 (MAP2030) sustainability
framework.
Drive performance along the value chain
By implementing continuous improvement initiatives to optimise productivity,
enhance our efficiency and eliminate waste across our operations, we gain
considerable competitive advantage.
During 2024 we delivered improvements across the value chain to reduce input
costs, largely from procurement initiatives, increase energy efficiency and
further enhance product quality. The completion of a number of significant
capital expenditure projects during the year will further improve productivity
and efficiency.
Our focus on minimising the environmental impacts of our operations is
demonstrated by our target to reduce waste to landfill per tonne of production
by 30% by 2030, against a 2020 baseline. In 2024 we decreased our waste to
landfill per tonne of production by 4% which, when compared to the 2020
baseline, is a reduction of 46%. We undertake projects to keep materials in
circulation by recycling and reusing waste as secondary raw materials with
this year's improvement mainly from our mills in Richards Bay (South Africa),
Kuopio (Finland) and Dynas (Sweden).
Investing in quality assets
We invest in quality assets through the cycle. Our investments ensure we have
capacity in structurally growing markets and a broad range of products to meet
the increasing demand for sustainable packaging from our customers.
Over the last three years we have invested €1.2 billion to increase capacity
in both Corrugated Packaging and Flexible Packaging. When fully ramped up,
these projects will add more than 500,000 tonnes of additional virgin and
recycled containerboard capacity (Swiecie, Kuopio and Duino) and 210,000
tonnes of kraft paper capacity (Steti). We also expanded our converting
capacity, primarily through major box plant expansions at Warsaw and Simet
(both Poland) and projects across Flexible Packaging. These include expanding
our market-leading pet food packaging converting capability and a new
extrusion line at Mondi Coating Steti (Czech Republic) to support the growth
of food and non-food contact packaging. With this investment and build phase
largely complete, we are now focused on executing our operational and
commercial strategy to ensure these capacity expansion projects ramp up
efficiently to maximise value from our investments and deliver mid-teen
returns through cycle.
We also invest in our mills and plants to drive operating efficiency, increase
energy self-sufficiency, reduce environmental impacts and maintain a
competitive advantage. In 2024 we continued to make progress towards reducing
our greenhouse gas emissions. Compared to our target of a 46% reduction in
Scope 1 and 2 emissions by 2030 against our 2019 baseline, we achieved an 11%
reduction compared to 2023 which, when compared to our 2019 baseline, is a
reduction of 31%. Contributing to this is our continued focus on switching
fuel mix towards renewable energy, including using biomass-based energy in our
mills. In 2024, 79% of our energy was from renewables (2023: 75%). Further
reductions will follow at our Richards Bay mill (South Africa), where we are
replacing the coal-fired boilers with a biomass boiler, removing our reliance
on externally procured energy, and at our Dynas mill (Sweden), where we are
replacing our existing boiler with a new energy-efficient boiler. These energy
investments reduce both costs and emissions, enabling us to offer our
customers products with a lower carbon footprint, supporting their
sustainability journey.
In February 2024 we completed the acquisition of the Hinton Pulp mill (Canada)
and have made good progress developing team excellence and improving its
productivity, sustainability performance and quality parameters for
high-quality pulp suitable for kraft paper. Feasibility studies for a new sack
kraft paper machine at the mill are ongoing in line with our intention to
fully integrate our American paper bags business.
In October 2024 we reached an agreement to acquire the Western Europe
Packaging Assets of Schumacher Packaging for an enterprise value of €634
million. The acquisition, due to complete in the first half of 2025,
complements Mondi’s Corrugated Packaging operations in Europe. It includes
two state-of-the-art mega-box plants in Germany and secures significant
capacity for Mondi to continue to meet growing demand for sustainable
packaging, particularly in eCommerce markets.
We continue to look at further opportunities for organic and inorganic growth
investment across our packaging portfolio and to improve operating efficiency
across all our operations to ensure we are well positioned to benefit from
structural growth in our markets and meet the demands of our customers for
sustainable packaging and paper.
Partner with customers
We believe that the global transition to sustainable packaging offers an
important growth opportunity for Mondi. We innovate in partnership with our
customers to create a unique range of fibre and high-end sustainable plastic
packaging products that are fit for a future circular economy and support our
customers’ sustainability journeys.
Complementing our corrugated solutions ‘Think Box’ innovation hubs, we
recently opened ‘FlexStudios’ at Steinfeld (Germany) to help us co-create
with our customers a range of new flexible packaging solutions. Working in
collaboration with Amazon, we launched a fully recyclable, paper-based padded
mailer this year and, reflecting the strength of our innovative ideas and
technologies, we received ten 2025 WorldStar Packaging Awards.
We are focused on providing our customers with sustainable low-carbon
packaging solutions that support their climate targets and keep materials in
circulation. In Europe, our growth plans are supported by legislation that is
increasingly driving the move towards more sustainable packaging products,
including the Packaging and Packaging Waste Regulation. We continue to improve
our data collection and analytics capabilities to enable us to support our
customers with product-related data to manage their Scope 3 emissions, as well
as maintaining traceability of our fibre sources.
We have increased the proportion of Mondi revenue from reusable, recyclable or
compostable products to 87% (2023: 85%). In 2021, as part of MAP2030, we set a
target of 100% of packaging and paper revenue to be reusable, recyclable or
compostable by 2025. Corrugated Packaging and Uncoated Fine Paper are fully
recyclable so our focus is on Flexible Packaging where we are making good
progress. In 2024, we had a sustainable alternative in place, or identified
and in development, for 97% of our Flexible Packaging revenue. With customer
adoption rates slower than expected due to a number of factors including the
weak macroeconomic environment, we recognise that achieving 100% in the coming
year is unlikely. As we reach the midpoint of MAP2030 and with the expansion
of our global footprint, we will be reviewing, and where relevant, updating
our MAP2030 targets.
Empower our people
We are focused on creating an inspiring, inclusive and safe workplace that
empowers our teams and enables leaders to take accountability for attracting,
developing, and retaining talent to foster innovation and growth. We engage
with colleagues throughout Mondi and take action based on their opinions and
feedback. Over the past year, we implemented local actions across the Group to
address points raised in the 2023 Employee Survey. On a Group level we have
been looking at how we can promote psychological safety and reinforce a
culture of listening and caring. As part of this, we conducted a pulse survey
on speaking up in 2024, which had a 78% participation rate. This high level of
engagement provides us with a representative sample and enables us to take
meaningful action across the organisation.
Ensuring the safety of our colleagues remains our top priority and although we
saw a slight increase in our Total Recordable Case Rate (TRCR) this year to
0.68 (2023: 0.64) we are still recognised as a leader in our industry. We did
however regrettably experience a fatality of an employee at our Merebank mill
(South Africa), and three people suffered serious finger injuries at our other
operations. We are resolute in our commitment to investigating every incident
thoroughly. Procedures and practices are rigorously revised to prevent any
recurrence and ensure everyone returns home safely at the end of each day.
Returns focused capital allocation
Our disciplined capital allocation policy gives us the flexibility to invest
through the economic cycle to drive long-term growth and to deliver attractive
returns, while supporting the ordinary dividend. Cash generated from
operations was €970 million in 2024 and we ended the year in a robust
financial position demonstrated by a leverage ratio of 1.7 times net debt to
underlying EBITDA.
While 2024 was another year of navigating challenging markets, the Board has
recommended a full year ordinary dividend of 70.0 euro cents per share
reflecting its continued confidence in the future of the business.
Following the sale of the Group’s Russian assets at the end of 2023, and on
obtaining shareholder approval, Mondi returned the net proceeds received of
€769 million to shareholders as a €1.60 per share special dividend in
February 2024. The special dividend was accompanied by a share consolidation,
whereby shareholders received 10 new ordinary shares for every 11 existing
ordinary shares held.
Mondi sees excellent growth and return opportunities from investing in its
packaging verticals of Corrugated Packaging and Flexible Packaging through
both organic growth and acquisitions, while continuing to optimise its
well-located and competitive Uncoated Fine Paper operations. Geographically,
the focus for growth in Corrugated Packaging is in leveraging our leading
positions and vertical integration strengths in Europe and adjacent markets.
In Flexible Packaging we will continue to seek opportunities to develop our
leading global franchise in kraft paper and paper bags, while focusing our
consumer flexibles business on serving the more developed markets of Europe
and North America.
Business unit review
Corrugated Packaging
Mondi is a leading producer of corrugated packaging with a cost-competitive
asset base and strong customer offering focused on quality, reliability and
service. We are the leading virgin containerboard producer in Europe and the
largest containerboard producer in emerging Europe. Our virgin containerboard
is a high-quality product with excellent properties for specialised end-use
applications, ideal to meet our customers' needs around the globe.
We are also a leading corrugated solutions producer across central and
emerging Europe. We leverage our integrated production network and partner
with our customers to create fully recyclable corrugated boxes and packaging.
€ million and percentage Year ended 31 December 2024 Year ended 31 December 2023 Change % Six months ended 31 December 2024 (H2 2024) Six months ended 30 June 2024 (H1 2024)
Segment revenue 2,251 2,280 (1) 1,148 1,103
Underlying EBITDA 328 310 6 185 143
Underlying EBITDA margin (%) 14.6% 13.6% 16.1% 13.0%
Capital employed 2,609 2,318
ROCE (%) 7.2% 7.7%
Corrugated Packaging delivered an improved performance compared to 2023 with
underlying EBITDA of €328 million and margin of 14.6% (2023:
€310 million, 13.6%). The business exhibited good cost control, achieving a
reduction in input costs which more than offset inflationary cost pressures.
Performance in the second half of the year was stronger when compared to the
first half mainly due to higher average selling prices.
In Containerboard, our sales volumes were broadly flat compared to the prior
year as the business continued to deliver its broad range of high-quality
paper grades to customers. We achieved selling price increases through the
year before some modest reductions during the last quarter resulting in
broadly similar average selling prices for the year compared to the prior
year. We are currently implementing containerboard price increases.
In Corrugated Solutions, box volumes were broadly flat but improved over the
year, with higher volumes in the second half compared to the first half
supported by the growing demand for sustainable packaging solutions used in
eCommerce and other consumer end-use applications.
The majority of our major capacity expansion projects have started up and are
ramping up capacity. In Containerboard, this includes the €125 million
modernisation investment at our Kuopio mill (Finland) which is increasing
semi-chemical fluting capacity by 55,000 tonnes while enhancing efficiency and
improving environmental performance at the mill. In addition, our €95
million debottlenecking project at Swiecie mill (Poland) is increasing
kraftliner capacity by 55,000 tonnes. In Corrugated Solutions, completed
investments include our Warsaw and Simet plant expansions in Poland,
transforming these sites into state-of-the-art corrugated packaging facilities
tailored to serve the specialised needs of our customers in Poland and beyond.
We continue to make good progress with our €200 million investment at our
Duino mill (Italy) to convert the existing paper machine into a high-quality,
cost-competitive recycled containerboard machine with an annual capacity of
420,000 tonnes. Start-up of the machine is expected in the first half of 2025.
Flexible Packaging
We are a global flexible packaging producer with a unique portfolio of
solutions. We primarily produce kraft paper which is converted into paper bags
or used for specialist consumer or industrial applications. As the global
leader in kraft paper and paper bag production, and together with our high
level of integration, our customers come to us for scale, security of supply
and global reach.
We are also a leading producer of high-quality, flexible plastic-based
packaging for consumer end-uses in Europe. Furthermore, we have broad coating
capabilities which add barriers to create functional paper solutions that
protect the goods inside while continuing to be recyclable in paper waste
streams.
€ million and percentage Year ended 31 December 2024 Year ended 31 December 2023 Change % Six months ended 31 December 2024 (H2 2024) Six months ended 30 June 2024 (H1 2024)
Segment revenue 3,964 3,866 3 1,940 2,024
Underlying EBITDA 558 637 (12) 282 276
Underlying EBITDA margin (%) 14.1% 16.5% 14.5% 13.6%
Capital employed 3,418 3,167
ROCE (%) 11.5% 14.4%
Flexible Packaging's underlying EBITDA was €558 million for the year with
margin of 14.1% (2023: €637 million, 16.5%) as higher sales volumes and
reduced input costs were offset by lower average selling prices and
inflationary cost pressures. A €32 million one-off currency loss from the
devaluation of the Egyptian pound, as previously reported, was also recognised
in the first half of the year. Excluding this one-off loss, Flexible
Packaging's underlying EBITDA was down in the second half as higher average
selling prices through the second half were offset by lower volumes and higher
fixed costs from scheduled mill maintenance shuts.
In Kraft Paper, improvements in market demand, supported by the drive for more
sustainable solutions, led to higher sales volumes compared to 2023. While
kraft paper selling prices increased during the first half and into the second
half of the year, average prices for the year remained below the prior year's
averages. In 2025, kraft paper has seen some early signs of improving demand
with order books tightening, supporting price increase announcements.
Paper Bags increased sales volumes by 3% compared to the prior year. This was
supported by the growing demand for traditional building material and cement
applications across our main emerging markets served, as well as increasing
demand for eCommerce solutions as our customers transition from plastic
mailers to our paper-based MailerBAGs. Input costs were lower compared to the
prior year primarily due to lower average kraft paper prices. This mitigated
the impact of lower paper bag selling prices.
Consumer Flexibles and Functional Paper and Films delivered resilient
performances with good margins and higher sales volumes compared to 2023,
continuing to provide customers with innovative and sustainable packaging
solutions.
During the year, we made good progress on our major capacity expansion
projects. Our €400 million investment in a new 210,000 tonne per annum kraft
paper machine and pulp mill upgrade at our Steti mill (Czech Republic)
commenced operations in December 2024. We also have a number of investments
across our converting plant network including expanding and upgrading the
global reach of our paper bag network, starting up a new extrusion line at
Steti and investments to consolidate our leading position in European pet food
packaging.
In February 2024 we completed the acquisition of the Hinton Pulp mill (Canada)
and have made good progress developing team excellence and improving its
productivity, sustainability performance and quality parameters for
high-quality pulp suitable for kraft paper. Feasibility studies for a new sack
kraft paper machine at the mill are ongoing in line with our intention to
fully integrate our American paper bags business.
Uncoated Fine Paper
Our Uncoated Fine Paper business produces a wide range of home, office,
converting and professional printing papers at our mills in central Europe and
South Africa. We have strong customer relationships, leveraging our leading
positions in these regions. We also produce and sell market pulp to customers
around the world.
€ million and percentage Year ended 31 December 2024 Year ended 31 December 2023 Change % Six months ended 31 December 2024 (H2 2024) Six months ended 30 June 2024 (H1 2024)
Segment revenue 1,317 1,292 2 648 669
Underlying EBITDA 198 289 (31) 32 166
Forestry fair value gain / (loss) 7 128 (42) 49
Underlying EBITDA excluding forestry fair value gain 191 161 74 117
Underlying EBITDA margin (%) 15.0% 22.4% 4.9% 24.8%
Capital employed 1,133 1,095
ROCE (%) 11.1% 20.6%
In Uncoated Fine Paper, underlying EBITDA of €198 million and margin of
15.0% were below last year due to the significantly lower forestry fair value
gain in 2024 of €7 million (2023: Underlying EBITDA of €289 million,
margin of 22.4% and forestry fair value gain of €128 million). Excluding
the impact of the significantly lower forestry fair value gain, the business
delivered an improved performance when compared to the prior year driven by
higher sales volumes and reduced input costs despite lower average selling
prices.
In Europe, sales volume increases were supported by a recovery in market
demand during the year, market share gains and restocking effects in the first
half of the year which abated in the second half. In South Africa, sales
volumes were modestly down on the prior year due to weaker domestic demand.
Uncoated fine paper selling prices increased in the first half of the year
however these largely reversed in the second half and ended the year below
2024 average prices.
Average market pulp prices were higher than the prior year. These increased
sharply during the first half of the year before decreasing over the course of
the second half, ending the year below average 2024 price levels.
The forestry fair value gain of €7 million in the year (2023:
€128 million) comprised a €49 million gain in the first half which
largely reversed in the second half (loss of €42 million) as a result of
wood price decreases in South Africa.
Finance review
In October 2024 we reached an agreement to acquire the Western Europe
Packaging Assets of Schumacher Packaging with completion expected in the first
half of 2025. All 2025 guidance provided below excludes this acquisition.
Group performance
Group revenue of €7,416 million was up on the prior year with higher sales
volumes despite lower average selling prices (2023: €7,330 million).
Underlying EBITDA was lower than the prior year at €1,049 million (2023:
€1,201 million) due to the significantly lower forestry fair value gain and
a one-off currency loss from the devaluation of the Egyptian pound recorded in
the period. The Group's underlying EBITDA margin was 14.1% (2023: 16.4%).
In 2024, input costs were lower than the prior year following price declines
across most input cost categories in 2023, with the largest benefits achieved
from lower wood costs in central Europe as well as energy and chemical costs.
Paper for recycling costs were higher due to price increases during the first
half of 2024 which largely reversed over the second half of the year. As we
enter 2025, input costs are broadly stable and similar to average 2024 levels.
Total maintenance costs were higher in the year mainly as a result of the
inclusion of the Hinton Pulp mill (Canada) that was acquired in February 2024.
In 2025, we expect a similar phasing of planned maintenance shuts as in 2024
with the majority to be undertaken in the second half of the year. Personnel
costs were also higher, driven by the inclusion of Hinton's employee costs
following the acquisition and inflationary cost pressures most notably from
the hyperinflationary environment in Turkiye. We remain focused on cost
control, driving efficiency improvements and taking decisive restructuring
actions where necessary. In regard to the latter, we closed three production
sites in the year and transferred volumes to other sites to ensure continuity
of supply to our customers. Other net operating expenses were negatively
impacted by the significantly lower forestry fair value gain and one-off
currency loss as outlined above, together with lower income received from
green energy sales and disposal of emissions credits. Comparability was also
impacted by income received in the prior year from an insurance claim.
Depreciation, amortisation and impairment underlying charges were higher at
€443 million (2023: €411 million) as a result of starting up a number of
capital investment projects in the year. These are expected to be €450-475
million in 2025.
Net finance costs of €70 million were in line with the prior year (2023:
€73 million). In 2025, we expect net finance costs of around €90 million
due to a higher average net debt balance.
The underlying tax charge for the year was €117 million, giving an effective
tax rate of 22.2% (2023: €167 million, 23.6%). In 2025, we expect our
effective tax rate to be around 23%.
A special item pre-tax charge of €150 million was recognised in the year.
This included, as previously reported, closure costs at the Stambolijski kraft
paper mill in Bulgaria which totalled €110 million and primarily related to
a non-cash asset impairment charge of €73 million. The remaining costs
comprised €22 million from closing two paper bag plants during the year, as
well as €18 million of transaction-related costs.
Basic underlying earnings per share were 82.7 euro cents (2023: 107.8 euro
cents) reflecting the lower underlying earnings and the effect of the share
consolidation that accompanied the special dividend paid in February 2024.
After taking special items into account, basic earnings per share were 49.1
euro cents (2023: 103.5 euro cents, special item pre-tax charge of
€27 million).
Cash flow
Cash generated from operations was €970 million, lower than the prior year
(2023: €1,312 million) as a result of a working capital cash outflow in the
year of €108 million compared to an inflow in 2023 of €229 million,
impacted in part by an increase in inventory levels following the start-up of
our major capacity expansion projects.
Capital expenditure cash payments were €933 million (2023: €830 million)
as we continued to invest in our meaningful capital expenditure programme
alongside investing to improve efficiency, reduce environmental impacts and
increase energy self-sufficiency. In 2025 we expect capital expenditure to be
€750-850 million which, in addition to regular stay in business capital
expenditure, includes the final payments associated with our €1.2 billion
capital expenditure programme, and the ongoing investments to replace the
boilers in both Richards Bay (South Africa) and Dynas (Sweden).
Tax paid was €120 million (2023: €178 million) and interest paid including
derivative interest was €79 million (2023: €103 million).
The Group returned €1,081 million of dividends to shareholders during the
year. This comprised a €1.60 per share special dividend payment in February
2024 totalling €769 million from the disposal of the Group´s Russian
operations in 2023. In addition, ordinary dividends totalling 70.0 euro cents
per share were paid to shareholders representing a distribution of
€312 million.
Liquidity, treasury and borrowings
Net debt at 31 December 2024 was €1,732 million with net debt to
underlying EBITDA at 1.7 times (31 December 2023: €419 million, 0.3
times), the increase in leverage reflecting the ongoing investment into the
business and the special dividend payment to shareholders in February 2024.
In April 2024, the Group repaid a €500 million Eurobond on maturity and in
May 2024, issued a 3.75% €500 million Eurobond with an 8-year tenor, thereby
extending the Group's maturity profile. Mondi's available liquidity at
31 December 2024 was €1,028 million, comprising the undrawn Syndicated
Revolving Credit Facility (RCF) of €750 million and cash and cash
equivalents of €278 million. The weighted average maturity of our committed
debt facilities at the end of the year was 3.9 years with no significant
short-term debt maturities. Our financing agreements do not contain financial
covenants.
In addition, and effective from January 2025, we increased the RCF by €250
million (to €1 billion) to further strengthen our liquidity position.
The Group maintains its investment grade credit rating and has an A- (stable
outlook) credit rating from Standard & Poor’s and a Baa1 (stable outlook)
credit rating from Moody’s.
Principal risks
The Board is responsible for the effectiveness of the Group’s risk
management activities and internal control processes. It has put procedures in
place for identifying, evaluating, and managing the risks faced by the Group.
In combination with the Audit Committee, the Board conducted, over the course
of the year, a robust assessment of the Group’s principal and emerging risks
to which Mondi is exposed and it is satisfied that the Group has effective
systems and controls in place to manage these risks relative to the risk
appetite levels established.
Risk management is by its nature a dynamic and ongoing process. Risk
management is of key importance given the diversity of the Group’s
locations, markets and production processes. Our internal controls aim to
provide reasonable assurance as to the accuracy, reliability and integrity of
our financial information, non-financial disclosures and the Group’s
compliance with applicable laws, regulations and internal policies as well as
the effectiveness of internal processes.
Key changes in the year
The Group’s most significant risks are long term in nature. The assessment
of the principal risks is updated annually to reflect the developments in our
strategic priorities and Board discussions on emerging risks.
In 2024, a review of the Group’s approach to the assessment of risk appetite
was performed. The review considered various risk appetite methodologies and
settled on an optimal approach which enables risk owners to use and own the
risk appetite in a practical manner. The Group utilises a four-point risk
appetite rating scale against which the residual risk of each principal risk
can be considered. Where a difference is identified between the risk appetite
and residual risk rating, the risk owner provides an explanation for and a
chosen approach to address the differential to the Executive Committee and the
Board.
A detailed risk assurance map is used to present our principal risks to the
Board, Audit Committee and Sustainable Development Committee, facilitating
comprehensive discussions on risk. The Board, in combination with the Audit
Committee, is satisfied that the review performed has enhanced the Group’s
approach to risk management. The Group remains committed to the continuous
improvement of risk assessment, risk management and risk reporting.
No changes to the Group’s principal risks were identified during the 2024
review.
The Board considered decreasing the risk rating for cost and availability of
raw materials due to a stabilised procurement environment; however, the risk
rating was maintained due to longer-term structural changes in the pricing and
availability of wood.
Emerging risks
The Board introduced a new emerging risk for the Group related to the
integration of a major acquisition, prompted by the announced acquisition of
the Western Europe Packaging Assets of Schumacher Packaging, which is
scheduled to complete in the first half of 2025.
The risks noted relating to a major acquisition included the integration of a
private company into a public company environment, the large scale of the
acquisition, the alignment of a different IT landscape and the combining of
different corporate cultures.
The Board is confident that risks associated with the acquisition will be well
mitigated, and that inclusion as an emerging risk and not as a principal risk
is the correct judgement.
In 2023, the Group noted one emerging risk for the execution of major capital
expenditure projects. This emerging risk was amended in 2024 to an emerging
risk labelled start-up and commercial ramp-up of major capital projects. The
amendment is due to the current phase of the Group’s capital investment
programme. The emerging risk is managed through mitigating activities, such
that the residual risk exposure is not considered significant.
Asset start-up and commercial ramp-up are planned in detail and updated from
initial project inception through to completion. Post-investment reviews are
conducted on major capital investments to evaluate the project execution
against the plan and identify lessons learnt. We will continue to monitor and
mitigate potential risks relating to the start-up and commercial ramp-up of
major capital projects in the year ahead.
Strategic risks
The industries and geographies in which we operate expose us to specific
long-term risks which are accepted by the Board as a consequence of the
Group’s chosen strategy and operating footprint.
We continue to monitor recent capacity announcements, demand developments and
how consumers are demanding more sustainable packaging. We continue to develop
our understanding of climate change risks and its impact whilst continuing to
improve our disclosures and improve our responses.
The Executive Committee and Board monitor our exposure to these risks and
evaluate investment decisions against our overall exposures so that our
strategic capital allocation takes advantage of the opportunities arising from
our deliberate exposure to such risks.
Our principal strategic risks relate to the following:
• Industry productive capacity
• Product substitution
• Fluctuations and variability in selling prices or gross
margins
• Country risk
• Climate change risks
Financial risks
We aim to maintain an appropriate capital structure and to manage our
financial risk exposures in compliance with all laws and regulations.
An attentive approach to financial risk management remains in response to tax
risks and ongoing short-term currency volatility.
Our principal financial risks relate to the following:
• Capital structure
• Currency risk
• Tax risk
Operational risks
As a Group we focus on operational excellence and investment in our people and
are committed to the responsible use of resources.
Our investments to improve our energy efficiency, engineer out our most
significant safety risks and improve operating efficiencies reduce the
likelihood of operational risk events.
Our principal operational risks relate to the following:
• Cost and availability of raw materials
• Energy security and related input costs
• Technical integrity of our operating assets
• Environmental impact
• Employee and contractor health and safety
• Attraction and retention of key skills and talent
• Cyber security risk
Compliance risk
We have a zero tolerance approach to non-compliance. Our strong culture and
values underpin our approach. These are emphasised in every part of our
business with a focus on integrity, honesty and transparency.
Our principal compliance risk relates to reputational risk.
A more detailed description of our principal risks can be found in the
Group’s 2023 Integrated Report. The 2024 Integrated Report is planned to be
published in March 2025.
Going concern
The directors have reviewed the Group’s budget and considered the
assumptions contained in the budget, including consideration of the principal
risks which may impact the Group’s performance in the 18 months following
the balance sheet date and considerations of the period immediately
thereafter.
The Group has a strong balance sheet. At 31 December 2024, the Group had
a liquidity position of €1,028 million, comprising €750 million of
undrawn committed debt facilities and cash and cash equivalents of €278
million available. As the Group’s debt facilities and loan agreements
contain no financial covenants, in performing its going concern assessment the
directors have focused on liquidity.
The Group announced on 9 October 2024 that it entered into an agreement to
acquire the Western Europe Packaging Assets of Schumacher Packaging for
an enterprise value of €634 million. The required financing for the
transaction has been considered in all scenarios tested. In order to provide
increased liquidity headroom for the Group following the agreed Schumacher
Packaging acquisition, the Group utilised the accordion increase in its €750
million RCF, to increase the available facility by €250 million to €1
billion, effective 2 January 2025. All of the banks agreed to the increase.
The Group has a track record of successfully accessing both bank and debt
capital markets for funding, and the Group’s management is expecting to be
able to refinance any facility maturing during the going concern period. The
Board believes that the strong and stable financial position of the
Group, supported by a continued strong investment grade credit rating
from both Moody’s (Baa1, outlook stable) and Standard & Poor’s (A-,
outlook stable), ensures the Group has access to funding through the going
concern period.
The current and possible future impact from the macroeconomic environment on
the Group’s activities and performance has been considered by the Board in
preparing its going concern assessment. The base case forecasts for the Group,
being those arising over the 18-month going concern assessment period as
reflected in the Group’s 2025-2027 plan, were sensitised to reflect a severe
but plausible downside scenario on Group performance.
The scenario testing assumed severe but plausible volume and margin reductions
happening in combination and was carried out against Mondi’s current
committed debt facilities, and on the assumption that the Group’s €600
million Eurobond maturing in April 2026 will be successfully refinanced. Given
the Group’s track record of successfully accessing both the bank and debt
capital markets for funding, the Board is confident that the Group will be
able to refinance the bond. This testing does not incorporate any mitigation
actions such as reductions and deferrals of capital and operational
expenditure or cash preservation responses, which the Group would implement in
the event of severe and extended revenue decline.
In the severe but plausible downside scenario, the Group has sufficient
liquidity headroom throughout the entire period covered by the going concern
assessment.
A further scenario has been modelled which, while considered highly unlikely,
assumes that no refinancing takes place during the going concern period. In
this scenario the Group would implement mitigating actions including
reductions and deferrals of capital and operational expenditure and other
cash preservation responses to maintain sufficient liquidity.
In addition to its modelled downside going concern scenario, the Board has
reverse stress tested the model to determine the extent of downturn which
would result in no liquidity headroom. The test was conducted based on the
Group’s current committed debt facilities, with the assumption that any
facility maturing during the assessment period will be refinanced. A decline
of 45% to the planned underlying EBITDA in the period until 30 June 2026, well
in excess of that contemplated in the severe but plausible downside scenario,
would need to persist throughout the observed period to result in no liquidity
headroom, which is considered very unlikely. This reverse stress test also
does not incorporate mitigating actions such as reductions and deferrals of
capital and operational expenditure or cash preservation responses, which the
Group would implement in the event of a severe and extended revenue decline.
Following its assessment, the directors have formed a judgement, at the time
of approving the condensed consolidated financial statements, that there are
no material uncertainties that cast doubt on the Group’s going concern
status and that it is a reasonable expectation that the Group has adequate
resources to continue in operational existence for the going concern period.
For this reason, the Group continues to adopt the going concern basis in
preparing the condensed consolidated financial statements for the year ended
31 December 2024.
Audited financial information
The condensed consolidated financial statements and notes 1 to 19 for the year
ended 31 December 2024 are derived from the Group annual financial statements
which have been audited by PricewaterhouseCoopers LLP. The unmodified audit
report is available for inspection at the Group’s registered office.
Condensed consolidated income statement
for the year ended 31 December 2024
2024 2023
€ million Notes Underlying Special items (Note 4) Total Underlying Special items (Note 4) Total
From continuing operations
Group revenue 3 7,416 — 7,416 7,330 — 7,330
Materials, energy and consumables used (3,696) — (3,696) (3,971) — (3,971)
Variable selling expenses (645) — (645) (618) — (618)
Gross margin 3,075 — 3,075 2,741 — 2,741
Maintenance and other indirect expenses (425) — (425) (374) — (374)
Personnel costs (1,228) (18) (1,246) (1,087) (9) (1,096)
Other net operating expenses (373) (58) (431) (79) (14) (93)
EBITDA 3 1,049 (76) 973 1,201 (23) 1,178
Depreciation, amortisation and impairments (443) (74) (517) (411) (4) (415)
Operating profit 3 606 (150) 456 790 (27) 763
Net loss from joint ventures (3) — (3) (5) — (5)
Impairment of investments in joint ventures — — — (5) — (5)
Net finance costs (70) — (70) (73) — (73)
Investment income 30 — 30 45 — 45
Foreign currency (losses)/gains (3) — (3) 1 — 1
Finance costs (97) — (97) (119) — (119)
Net monetary (loss)/gain arising from hyperinflationary economies (5) — (5) 2 — 2
Profit before tax 528 (150) 378 709 (27) 682
Tax (charge)/credit 6 (117) 1 (116) (167) 6 (161)
Profit from continuing operations 411 (149) 262 542 (21) 521
From discontinued operations
Loss from discontinued operations 1 — (655)
Profit/(loss) for the year 262 (134)
Attributable to:
Non-controlling interests 44 19
Shareholders 218 (153)
Earnings per share (EPS) attributable to shareholders 2
euro cents
From continuing operations
Basic EPS 7 49.1 103.5
Diluted EPS 7 49.1 103.5
Basic underlying EPS 7 82.7 107.8
Diluted underlying EPS 7 82.6 107.8
From continuing and discontinued operations
Basic EPS 7 49.1 (31.5)
Diluted EPS 7 49.1 (31.5)
Notes:
1 Discontinued operations represent the Group’s Russian packaging
operations and the Syktyvkar mill until the disposal completed on 30 June 2023
and 4 October 2023, respectively. Details on the transaction and information
on the financial performance and cash flows of the discontinued operations for
the year ended 31 December 2023 were disclosed in note 28 of the Group’s
Integrated report and financial statements 2023.
2 On 13 February 2024, the Group returned the net proceeds from the sale of
the Group’s Russian assets to its shareholders by way of a special dividend.
In addition, in order to maintain the comparability, so far as possible, of
Mondi plc’s share price before and after the special dividend, the special
dividend was accompanied by a share consolidation, which took effect on
29 January 2024, resulting in shareholders receiving 10 new ordinary shares
for every 11 existing ordinary shares. Further details are provided in notes
7, 8 and 10.
Condensed consolidated statement of comprehensive income
for the year ended 31 December 2024
2024 2023
€ million Before tax amount Tax credit Net of tax amount Before tax amount Tax credit Net of tax amount
Profit/(loss) for the year 262 (134)
Items that may subsequently be or have been reclassified to the condensed consolidated income statement
Fair value losses arising from cash flow hedges of continuing operations (2) 1 (1) — — —
Exchange differences on translation of continuing non-euro operations 75 — 75 (70) — (70)
Exchange differences on translation of discontinued non-euro operations — — — (227) — (227)
Reclassification of foreign currency translation reserve to the consolidated income statement on disposal of businesses of discontinued operations — — — 633 — 633
Items that will not subsequently be reclassified to the condensed consolidated income statement
Remeasurements of retirement benefits plans of continuing operations (2) — (2) (23) 7 (16)
Other comprehensive income for the year 71 1 72 313 7 320
Other comprehensive income/(expense) attributable to:
Non-controlling interests 11 (3)
Shareholders 61 323
Total comprehensive income attributable to:
Non-controlling interests 55 16
Shareholders 279 170
Total comprehensive income/(expense) attributable to shareholders arises from:
Continuing operations 279 419
Discontinued operations — (249)
Total comprehensive income for the year 334 186
Condensed consolidated statement of financial position
as at 31 December 2024
€ million Notes 2024 2023
Property, plant and equipment 5,160 4,619
Goodwill 767 765
Intangible assets 70 68
Forestry assets 9 503 519
Investments in joint ventures 5 8
Financial instruments 29 28
Deferred tax assets 22 24
Net retirement benefits asset 3 5
Other non-current assets 3 5
Total non-current assets 6,562 6,041
Inventories 1,194 1,049
Trade and other receivables 1,275 1,254
Current tax assets 22 14
Financial instruments 10 14
Cash and cash equivalents 14b 278 1,592
Total current assets 2,779 3,923
Total assets 9,341 9,964
Short-term borrowings 11 (63) (559)
Trade and other payables (1,281) (1,219)
Current tax liabilities (67) (78)
Provisions (65) (21)
Financial instruments (9) (4)
Total current liabilities (1,485) (1,881)
Medium- and long-term borrowings 11 (1,952) (1,460)
Net retirement benefits liability 12 (161) (159)
Deferred tax liabilities (342) (322)
Provisions (32) (27)
Other non-current liabilities (19) (19)
Total non-current liabilities (2,506) (1,987)
Total liabilities (3,991) (3,868)
Net assets 5,350 6,096
Equity
Share capital 10 97 97
Own shares (20) (17)
Retained earnings 4,582 5,434
Other reserves 198 141
Total attributable to shareholders 4,857 5,655
Non-controlling interests in equity 493 441
Total equity 5,350 6,096
The Group’s condensed consolidated financial statements, including related
notes 1 to 19, were approved by the Board and authorised for issue on 19
February 2025 and were signed on its behalf by:
Andrew King Mike Powell
Director Director
Condensed consolidated statement of changes in equity
for the year ended 31 December 2024
€ million Equity attributable to shareholders Non-controlling interests Total
equity
At 1 January 2023 5,794 460 6,254
Total comprehensive income for the year: 170 16 186
(Loss)/profit for the year (153) 19 (134)
Other comprehensive income/(expense) 323 (3) 320
Hyperinflation monetary adjustment 14 1 15
Transactions with shareholders in their capacity as shareholders
Dividends (345) (7) (352)
Purchases of own shares (8) — (8)
Mondi share schemes’ charge 9 — 9
Non-controlling interests bought out 21 (29) (8)
At 31 December 2023 5,655 441 6,096
Total comprehensive income for the year: 279 55 334
Profit for the year 218 44 262
Other comprehensive income 61 11 72
Hyperinflation monetary adjustment 7 — 7
Transactions with shareholders in their capacity as shareholders
Dividends (see note 8) (1,081) (6) (1,087)
Purchases of own shares (12) — (12)
Mondi share schemes’ charge 9 — 9
Injection from non-controlling interests — 3 3
At 31 December 2024 4,857 493 5,350
Equity attributable to shareholders
€ million 2024 2023 At 1 January 2023
Share capital 97 97 97
Own shares (20) (17) (16)
Retained earnings 4,582 5,434 5,895
Cumulative translation adjustment reserve (456) (520) (859)
Post-retirement benefits reserve (59) (53) (35)
Share-based payment reserve 19 19 17
Cash flow hedge reserve — 1 1
Merger reserve 667 667 667
Other sundry reserves 27 27 27
Total 4,857 5,655 5,794
Condensed consolidated statement of cash flows
for the year ended 31 December 2024
€ million Notes 2024 2023
Cash flows from operating activities
Cash generated from continuing operations 14a 970 1,312
Dividends received from other investments 1 2
Income tax paid (120) (178)
Net cash generated from operating activities of discontinued operations — 223
Net cash generated from operating activities 851 1,359
Cash flows from investing activities
Investment in property, plant and equipment 3 (933) (830)
Investment in intangible assets (13) (16)
Investment in forestry assets 9 (48) (48)
Proceeds from the disposal of property, plant and equipment 17 25
Proceeds from the disposal of financial asset investments — 2
Acquisition of businesses, net of cash and cash equivalents 13 (6) (37)
Loans advanced to related and external parties — (1)
Interest received 32 38
Other investing activities 15 17
Net cash generated from investing activities of discontinued operations — 368
Net cash used in investing activities (936) (482)
Cash flows from financing activities
Proceeds from issue of Eurobonds 14c 496 —
Repayment of Eurobonds 14c (500) —
Proceeds from medium- and long-term borrowings 14c 215 —
Repayment of medium- and long-term borrowings 14c (215) —
Proceeds from short-term borrowings 14c 9 16
Repayment of short-term borrowings 14c (18) (33)
Repayment of lease liabilities 14c (26) (22)
Interest paid 14c (44) (50)
Dividends paid to shareholders 8 (1,081) (345)
Dividends paid to non-controlling interests (6) (7)
Purchases of own shares (12) (8)
Injection from non-controlling interests 3 —
Non-controlling interests bought out — (8)
Net cash outflow from debt-related derivative financial instruments 14c (47) (77)
Net cash used in financing activities of discontinued operations — (7)
Net cash used in financing activities (1,226) (541)
Net (decrease)/increase in cash and cash equivalents (1,311) 336
Cash and cash equivalents at beginning of year 1,592 1,381
Cash movement in the year 14c (1,311) 336
Effects of changes in foreign exchange rates 14c (12) (125)
Cash and cash equivalents at end of year 14b 269 1,592
Notes to the condensed consolidated financial statements
for the year ended 31 December 2024
1 Basis of preparation
These condensed consolidated financial statements as at and for the year ended
31 December 2024 comprise Mondi plc and its subsidiaries (referred to as 'the
Group'), and the Group’s share of the results and net assets of its
associates and joint ventures.
The Group’s condensed consolidated financial statements have been derived
from the audited consolidated financial statements of the Group, prepared in
accordance with UK-adopted International Accounting Standards and with the
requirements of the Companies Act 2006 as applicable to companies reporting
under those standards. The Group’s condensed consolidated financial
statements do not contain sufficient information to comply with International
Financial Reporting Standards (IFRS Accounting Standards).
The financial information set out in these condensed consolidated financial
statements does not constitute the Company’s statutory accounts for the
years ended 31 December 2024 or 2023 but is derived from those accounts.
Statutory accounts for 2023 have been delivered to the Registrar of Companies,
and those for 2024 will be delivered in due course. The auditors have reported
on those accounts; their report was (i) unqualified, (ii) did not include a
reference to any matters to which the auditors drew attention by way of
emphasis without qualifying their report and (iii) did not contain a statement
under section 498 (2) or (3) of the Companies Act 2006. Copies of the
unqualified auditors' report on the Integrated report and financial statements
2024 are available for inspection at the registered office of Mondi plc.
The condensed consolidated financial statements have been prepared on a going
concern basis as discussed in the commentary under the heading ‘Going
concern’ which is incorporated by reference into these condensed
consolidated financial statements.
The condensed consolidated financial statements have been prepared under the
historical cost basis of accounting, as modified by forestry assets, pension
assets, certain financial assets and financial liabilities held at fair value
through profit and loss, assets acquired and liabilities assumed in a business
combination and accounting in hyperinflationary economies.
2 Accounting policies
The same accounting policies and Alternative Performance Measures (APMs),
methods of computation and presentation have been followed in the preparation
of the condensed consolidated financial statements for the year ended
31 December 2024 as were applied in the preparation of the Group’s annual
financial statements for the year ended 31 December 2023, except as follows:
• A number of amendments to IFRS became effective for the financial
period beginning on 1 January 2024, but the Group did not have to change its
accounting policies or make any retrospective adjustments as a result of
adopting these amendments.
Alternative Performance Measures
The Group presents certain measures of financial performance, position or cash
flows that are not defined or specified according to IFRS Accounting Standards
and UK-adopted International Accounting Standards. These measures, referred to
as Alternative Performance Measures, are defined at the end of this document.
3 Operating segments
The Group’s operating segments are reported in a manner consistent with the
internal reporting provided to the Executive Committee, the chief operating
decision-making body. The operating segments are managed based on the nature
of the underlying products produced by those businesses and, consistent with
prior year, comprise three distinct segments.
Year ended 31 December 20241
€ million, unless otherwise stated Corrugated Packaging Flexible Packaging Uncoated Fine Paper Corporate Intersegment elimination Total continuing operations
Segment revenue 2,251 3,964 1,317 — (116) 7,416
Internal revenue (22) (37) (57) — 116 —
External revenue 2,229 3,927 1,260 — — 7,416
Underlying EBITDA 328 558 198 (35) — 1,049
Depreciation, amortisation and impairments 2 (167) (203) (72) (1) — (443)
Underlying operating profit/(loss) 161 355 126 (36) — 606
Special items before tax (5) (132) — (13) — (150)
Capital employed 2,609 3,418 1,133 (78) — 7,082
Trailing 12-month average capital employed 2,224 3,051 1,134 (126) — 6,283
Additions to non-current non-financial assets 346 565 160 — — 1,071
Capital expenditure cash payments 321 518 94 — — 933
Underlying EBITDA margin (%) 14.6 14.1 15.0 — — 14.1
Return on capital employed (%) 7.2 11.5 11.1 — — 9.6
Average number of employees (thousands) 3 6.4 12.0 2.7 0.1 — 21.2
Year ended 31 December 20231
€ million, unless otherwise stated Corrugated Packaging Flexible Packaging Uncoated Fine Paper Corporate Intersegment elimination Total continuing operations
Segment revenue 2,280 3,866 1,292 — (104) 7,334
Internal revenue 4 (23) (33) (52) — 104 (4)
External revenue 2,257 3,833 1,240 — — 7,330
Underlying EBITDA 310 637 289 (35) — 1,201
Depreciation, amortisation and impairments 2 (151) (191) (68) (1) — (411)
Underlying operating profit/(loss) 159 446 221 (36) — 790
Special items before tax — — (27) — — (27)
Capital employed 2,318 3,167 1,095 (65) — 6,515
Trailing 12-month average capital employed 2,057 3,068 1,075 (65) — 6,135
Additions to non-current non-financial assets 379 427 129 — — 935
Capital expenditure cash payments 326 425 79 — — 830
Underlying EBITDA margin (%) 13.6 16.5 22.4 — — 16.4
Return on capital employed (%) 7.7 14.4 20.6 — — 12.8
Average number of employees (thousands) 3 6.5 11.6 2.8 0.1 — 21.0
Notes:
1 See definitions of APMs at the end of this document.
2 Previously presented separately as 'depreciation and impairment' and
'amortisation' and includes only impairments not classified as special items.
3 Presented on a full-time employee equivalent basis.
4 Total continuing operations' internal revenue relates to transactions with
discontinued operations.
External revenue by location of contribution and by location of customer
External revenue by location of contribution External revenue by location of customer
€ million 2024 2023 2024 2023
Western Europe
Austria 1,175 1,301 166 159
Germany 555 579 932 954
UK 3 3 196 192
Rest of Western Europe 721 792 1,620 1,691
Western Europe total 2,454 2,675 2,914 2,996
Emerging Europe
Czech Republic 705 657 264 252
Poland 1,347 1,275 729 722
Turkiye 490 426 533 486
Rest of emerging Europe 919 887 543 521
Emerging Europe total 3,461 3,245 2,069 1,981
Africa
South Africa 667 656 489 495
Rest of Africa 80 95 366 395
Africa total 747 751 855 890
Russia — — — 5
North America 648 561 850 825
South America 7 3 93 94
Asia and Australia 99 95 635 539
Total Group revenue from continuing operations 7,416 7,330 7,416 7,330
4 Special items
The Group separately discloses special items, an APM as defined at the end of
this document, on the face of the condensed consolidated income statement to
assist its stakeholders in understanding the underlying financial performance
achieved by the Group on a basis that is comparable from year to year.
€ million 2024 2023
Operating special items
Impairment of assets (74) (4)
Restructuring and closure costs:
Personnel costs (18) (9)
Other restructuring and closure costs (40) (14)
Costs relating to the acquisition of Schumacher Packaging (5) —
Costs relating to the aborted all-share combination with DS Smith plc (13) —
Total special items before tax (150) (27)
Tax credit (see note 6) 1 6
Total special items (149) (21)
The operating special items resulted in a cash outflow from operating
activities of €34 million for the year ended 31 December 2024 (2023:
€10 million).
To 31 December 2024
The special items during the year ended 31 December 2024 comprised:
• Corrugated Packaging
- On 9 October 2024, the Group announced that it has entered into an agreement
to acquire the Western Europe Packaging Assets of Schumacher Packaging for an
enterprise value of €634 million. The transaction, which is subject to
certain customary regulatory approvals, is expected to close in the first half
of 2025. In 2024, transaction costs of €5 million were recognised and
additional costs will be incurred in 2025 with total costs expected to exceed
€10 million.
• Flexible Packaging
- Closure of a paper bags plant in Maastricht (Netherlands). Restructuring and
closure costs of €13 million were recognised.
- Closure of a paper bags plant in Pine Bluff (USA). Restructuring and closure
costs of €8 million and related impairment of assets of €1 million were
recognised. Additional costs will be incurred in 2025 with total costs
expected to exceed €10 million.
- Closure of Stambolijski paper mill (Bulgaria) following a fire in September
2024. Restructuring and closure costs of €37 million and related impairment
of assets of €73 million were recognised.
• Corporate
- €13 million of costs relating to the aborted all-share combination with
DS Smith plc. On 19 April 2024, the Board announced it did not intend to make
an offer for DS Smith plc following a period of due diligence and after
carefully considering the value the all-share combination with DS Smith plc
would deliver to Mondi's shareholders.
To 31 December 2023
The special items during the year ended 31 December 2023 comprised:
• Uncoated Fine Paper
- Closure of a paper machine and streamlining the capacity of the finishing
lines at the Neusiedler operations in Austria. Restructuring and closure costs
of €23 million and related impairment of assets of €4 million were
recognised.
5 Write-down of inventories to net realisable value
€ million 2024 2023
Within materials, energy and consumables used
Write-down of inventories to net realisable value (69) (77)
Aggregate reversal of previous write-downs of inventories 49 45
6 Taxation
The Group’s effective rate of tax before special items for the year ended
31 December 2024 was 22.2% (2023: 23.6%).
€ million 2024 2023
UK corporation tax at 25% (2023: 23.5%) 4 —
Overseas tax 105 135
Current tax in respect of the prior years (4) (13)
Current tax 105 122
Deferred tax in respect of the current year 10 62
Deferred tax in respect of the prior years (5) (24)
Deferred tax attributable to a change in the rate of domestic income tax 7 7
Tax charge before special items 117 167
Current tax on special items — (6)
Deferred tax on special items (1) —
Tax credit on special items (see note 4) (1) (6)
Tax charge for the year 116 161
Current tax charge 105 116
Deferred tax charge 11 45
On 24 May 2021, legislation was substantively enacted in the UK to increase
the corporate tax rate from 19% to 25% with effect from 1 April 2023. In the
year ended 31 December 2023, the 23.5% UK corporation tax rate referenced in
the table above reflects the average tax rate that applied in that year.
The Group is within the scope of the OECD Pillar 2 model rules as of 1 January
2024. The effective tax rate (as calculated under the Pillar 2 transitional
safe harbour rules) in the majority of countries in which the Group operates
exceeds 15% for the year ended 31 December 2024. Additional Pillar 2 top-up
tax of €3 million has been included within the current tax charge for the
year ended 31 December 2024, mostly arising in a small number of
jurisdictions benefitting from tax incentives on capital investments and tax
holidays.
7 Earnings per share (EPS)
On 13 February 2024, the Group returned the net proceeds from the sale of the
Group's Russian assets to its shareholders by way of a special dividend (see
note 8). In addition, in order to maintain the comparability, so far as
possible, of Mondi plc’s share price before and after the special dividend,
the special dividend was accompanied by a share consolidation, which took
effect on 29 January 2024, resulting in shareholders receiving 10 new
ordinary shares for every 11 existing ordinary shares (see note 10).
For calculating basic and diluted EPS measures, the Board concluded that the
overall effect of the share consolidation and special dividend was a share
repurchase at fair value. Therefore, the reduction in the number of shares as
a result of the share consolidation was reflected in the denominator in the
current year prospectively from the day the dividend was paid
(i.e. 13 February 2024). The weighted average number of ordinary shares
outstanding for 2023 was not restated.
EPS attributable to shareholders
euro cents 2024 2023
From continuing operations
Basic EPS 49.1 103.5
Diluted EPS 49.1 103.5
Basic underlying EPS 82.7 107.8
Diluted underlying EPS 82.6 107.8
From continuing and discontinued operations
Basic EPS 49.1 (31.5)
Diluted EPS 49.1 (31.5)
Basic headline EPS 60.8 145.3
Diluted headline EPS 60.8 145.3
The calculation of basic and diluted EPS, basic and diluted underlying EPS and
basic and diluted headline EPS is based on the following data:
Earnings
€ million 2024 2023
Profit/(loss) for the year attributable to shareholders 218 (153)
Arises from:
Continuing operations 218 502
Discontinued operations — (655)
Special items attributable to shareholders (see note 4) 150 27
Related tax (see note 4) (1) (6)
Total earnings for the year (prior to special items) 367 (132)
Arises from:
Continuing operations 367 523
Discontinued operations — (655)
Gain on disposal of property, plant and equipment (12) (13)
Insurance reimbursements for property damages (3) (27)
Restructuring and closure costs (see note 4) (58) (23)
Costs relating to the aborted all-share combination with DS Smith plc (see note 4) (13) —
Costs relating to the acquisition of Schumacher Packaging (see note 4) (5) —
Gain on purchase of business before transaction-related costs (see note 13) (13) —
Impairments not included in special items — 3
Loss arising from sale and leaseback transaction 3 —
Loss on disposal of businesses from discontinued operations — 756
Impairments included in loss from discontinued operations — 113
Related tax 4 28
Headline earnings for the year 270 705
Underlying earnings, total earnings (prior to special items) and headline
earnings represent APMs which are defined at the end of this document.
Weighted average number of shares
million 2024 2023
Basic number of ordinary shares outstanding 444.0 485.1
Effect of dilutive potential ordinary shares 0.1 —
Diluted number of ordinary shares outstanding 444.1 485.1
8 Dividends
An interim dividend for the year ended 31 December 2024 of 23.33 euro cents
per ordinary share was paid on Friday 27 September 2024 to those
shareholders on the register of Mondi plc on Friday 23 August 2024.
A proposed final dividend for the year ended 31 December 2024 of 46.67 euro
cents per ordinary share will be paid on Friday 16 May 2025 to those
shareholders on the register of Mondi plc on Friday 4 April 2025.
The final ordinary dividend proposed has been recommended by the Board and is
subject to the approval of the shareholders of Mondi plc at the Annual General
Meeting scheduled for Thursday 8 May 2025.
2024 2023
euro cents per share € million euro cents per share € million
Final ordinary dividend paid in respect of the prior year 46.67 209 48.33 231
Special dividend 160.00 769 — —
Interim ordinary dividend paid in respect of the current year 23.33 103 23.33 114
Total ordinary and special dividends paid 1,081 345
Final ordinary dividend proposed to shareholders 46.67 206 46.67 209
On 13 February 2024, the Group returned the net proceeds from the sale of the
Group's Russian assets to shareholders by way of a special dividend of €1.60
per existing ordinary share (see note 7). The final ordinary dividend for the
year ended 31 December 2023 was declared after the accompanying share
consolidation took effect and therefore, was declared based on the number of
new ordinary shares.
Dividend timetable
The proposed final dividend for the year ended 31 December 2024 of 46.67 euro
cents per share will be paid in accordance with the following timetable:
Last date to trade shares cum-dividend
JSE Limited Tuesday 1 April 2025
London Stock Exchange Wednesday 2 April 2025
Shares commence trading ex-dividend
JSE Limited Wednesday 2 April 2025
London Stock Exchange Thursday 3 April 2025
Record date Friday 4 April 2025
Last date for receipt of Dividend Reinvestment Plan (DRIP) elections by Central Securities Depository Participants Thursday 10 April 2025
Last date for DRIP elections to UK Registrar and South African Transfer Secretaries
South African Register Friday 11 April 2025
UK Register Tuesday 22 April 2025
Annual General Meeting Thursday 8 May 2025 1
Payment date Friday 16 May 2025
DRIP purchase settlement date (subject to market conditions and the purchase of shares in the open market)
UK Register Tuesday 20 May 2025
South African Register Thursday 22 May 2025
DRIP results announcement Friday 30 May 2025
Currency conversion date
ZAR/euro Thursday 20 February 2025
Euro/sterling Thursday 24 April 2025
Note:
1 Results of the Annual General Meeting to be held are expected to be
released on or around Thursday 8 May 2025.
Share certificates on Mondi plc’s South African register may not be
dematerialised or rematerialised between Wednesday 2 April 2025 and Friday 4
April 2025, both dates inclusive, nor may transfers between the UK and South
African registers of Mondi plc take place between Wednesday 26 March 2025 and
Friday 4 April 2025, both dates inclusive.
Information relating to the dividend tax to be withheld from Mondi plc
shareholders on the South African branch register will be announced
separately, together with the ZAR/euro exchange rate to be applied, on or
shortly after Thursday 20 February 2025.
9 Forestry assets
€ million 2024 2023
At 1 January 519 485
Investment in forestry assets 48 48
Fair value gains 7 128
Felling costs (92) (87)
Currency movements 21 (55)
At 31 December 503 519
Mature 371 359
Immature 132 160
The fair value of forestry assets is a level 3 measure in terms of the fair
value measurement hierarchy (see note 17), consistent with prior years. The
fair value of forestry assets is determined using a market based approach.
10 Share capital
On 13 February 2024, the Group returned the net proceeds from the sale of the
Group’s Russian assets to shareholders by way of a special dividend of
€1.60 per existing ordinary share. In addition, in order to maintain the
comparability, so far as possible, of Mondi plc’s share price before and
after the special dividend, the special dividend was accompanied by a share
consolidation, which took effect on 29 January 2024, resulting in shareholders
receiving 10 new ordinary shares with a nominal value of €0.22 each for
every 11 existing ordinary shares with a nominal value of €0.20 each.
To effect the share consolidation, the Group issued 3 additional ordinary
shares prior to the record date for the share consolidation, increasing the
number of ordinary shares from 485,553,780 ordinary shares to 485,553,783
ordinary shares, so that the number of the existing ordinary shares in issue
at the time of the consolidation was exactly divisible by 11, such that there
was no remaining fraction of a share. Following the share consolidation, the
total number of ordinary shares issued decreased by 44,141,253 ordinary shares
from 485,553,783 ordinary shares to 441,412,530 ordinary shares, while the
total nominal value of the share capital of the Group remained unchanged at
€97 million.
Number of shares € million
At 31 December 2023 1 485,553,780 97
Shares issued 3 —
Effect of share consolidation (44,141,253) —
At 31 December 2024 441,412,530 97
Note:
1 There were no movements in the share capital of Mondi plc in 2023.
11 Borrowings
The primary sources of the Group’s liquidity include its €3 billion
Guaranteed Euro Medium Term Note Programme, its €750 million Syndicated
Revolving Credit Facility (RCF), which has been increased to €1 billion
effective from 2 January 2025, and financing from various banks and other
credit agencies, thus providing the Group with access to diverse sources of
debt financing.
The principal loan arrangements in place are the following:
€ million Maturity Interest rate % 2024 2023
Financing facilities
Syndicated Revolving Credit Facility 1 June 2028 EURIBOR + margin 750 750
€500 million Eurobond April 2024 1.500% — 500
€600 million Eurobond April 2026 1.625% 600 600
€750 million Eurobond April 2028 2.375% 750 750
€500 million Eurobond May 2032 3.750% 500 —
Long-Term Facility Agreement December 2026 EURIBOR + margin 13 20
Other Various Various — 4
Total committed facilities 2,613 2,624
Drawn (1,863) (1,870)
Total committed facilities available 750 754
Note:
1 In December 2024, the Group’s Syndicated Revolving Credit Facility was
increased from a €750 million facility to a €1 billion facility effective
from 2 January 2025.
The Group’s Eurobonds incur a fixed rate of interest. Swap agreements are
utilised by the Group to raise non-euro-denominated currency to fund
subsidiaries liquidity needs thereby exposing the Group to floating interest
rates.
In April 2024, the Group repaid its €500 million Eurobond at maturity and,
in May 2024, issued a new €500 million 8 year Eurobond maturing in May 2032
at a coupon of 3.750% per annum. The new Eurobond was issued under the
Group’s Guaranteed Euro Medium Term Note Programme and the proceeds were
used for general corporate purposes.
The RCF incorporates key sustainability targets linked to MAP2030, classifying
the facility as a Sustainability Linked Loan. Under the terms of the
agreement, the margin will be adjusted according to the Group’s performance
against specified sustainability targets.
Short-term liquidity needs are met by cash and the RCF. As at 31 December
2024, the Group had no financial covenants in any of its financing facilities.
2024 2023
€ million Current Non-current Total Current Non-current Total
Secured
Lease liabilities 24 104 128 21 104 125
Total secured 24 104 128 21 104 125
Unsecured
Bonds — 1,842 1,842 500 1,345 1,845
Bank loans and overdrafts 39 6 45 38 11 49
Total unsecured 39 1,848 1,887 538 1,356 1,894
Total borrowings 63 1,952 2,015 559 1,460 2,019
Committed facilities drawn 1,863 1,870
Uncommitted facilities drawn 152 149
12 Retirement benefits
All assumptions related to the Group’s defined benefit schemes and
post-retirement medical plan liabilities were re-assessed individually for the
year ended 31 December 2024. Due to changes in assumptions and exchange rate
movements, the net retirement benefits liability increased by €2 million and
the net retirement benefits asset decreased by €2 million. The assets
backing the defined benefit scheme liabilities reflect their market values as
at 31 December 2024. Net remeasurement losses arising from changes in
assumptions and return on plan assets amounting to €2 million have been
recognised in the condensed consolidated statement of comprehensive income.
13 Business combinations
To 31 December 2024
On 5 February 2024, the Group announced the completion of the acquisition of
Hinton Pulp mill in Alberta (Canada) from West Fraser Timber Co. Ltd (West
Fraser) for an agreed consideration of USD 5 million, before working capital
adjustments. The mill has the capacity to produce around 250,000 tonnes of
pulp per annum and will provide the Group with access to local, high-quality
fibre from a well-established wood basket as part of a long-term partnership
with West Fraser. The Group intends to invest in the mill to improve
productivity and sustainability performance and, subject to pre-engineering
and permitting, expand the facility primarily with a new kraft paper machine
which will integrate its paper bag operations in the Americas and support
future growth.
Hinton's revenue for the year ended 31 December 2024 was €115 million with
a loss after tax of €21 million. Since the date of acquisition, Hinton's
revenue of €102 million and a loss after tax of €17 million have been
included in the condensed consolidated income statement.
Details of the net assets acquired, as adjusted from book to fair value, are
as follows:
€ million Fair value
Net assets acquired
Property, plant and equipment 4
Inventories 15
Trade and other receivables 17
Total assets 36
Trade and other payables (11)
Deferred tax liabilities (4)
Other provisions (2)
Total liabilities (17)
Net assets acquired 19
Gain on bargain purchase before transaction-related costs (13)
Net cash paid per condensed consolidated statement of cash flows 6
Transaction costs of €4 million were charged to other net operating expenses
in the condensed consolidated income statement.
The acquisition is a purchase of assets that constitutes a business accounted
for under IFRS 3, 'Business Combinations'. The purchase price allocation
resulted in a net gain on purchase of €9 million, net of transaction-related
costs, as the fair value of net assets acquired was in excess of the
consideration paid. The gain on purchase is attributable to the mill’s
loss-making operations at the time of the transaction and the need for
investment to improve productivity and sustainability performance. The gain
was recognised in other net operating expenses in the condensed consolidated
income statement.
The fair values of assets acquired and liabilities assumed in business
combinations are level 3 measures in terms of the fair value measurement
hierarchy. Property, plant and equipment has been measured at fair value using
relevant valuation methods accepted under IFRS 13, 'Fair Value Measurement',
with related deferred tax adjustments. Management has considered the impact of
environmental and climate risks on the estimated fair values of Hinton's
property, plant and equipment. These considerations did not have a material
impact.
To 31 December 2023
On 12 January 2023, the Group completed the acquisition of the Duino mill near
Trieste (Italy) from the Burgo Group. Details of this business combination
were disclosed in note 25 of the Group’s Integrated report and financial
statements 2023.
14 Consolidated cash flow analysis
(a) Reconciliation of profit before tax to cash generated from operations
€ million 2024 2023
Profit before tax from continuing operations 378 682
Depreciation and amortisation 443 408
Impairment of property, plant and equipment (not included in special items) — 3
Share-based payments 9 9
Net cash flow effect of current and prior year special items 116 17
Net finance costs 70 73
Net monetary loss/(gain) arising from hyperinflationary economies 5 (2)
Net loss from joint ventures 3 5
Impairment of investments in joint ventures — 5
Increase/(decrease) in provisions 13 (17)
Decrease in net retirement benefits (8) (19)
Net movement in working capital (108) 229
(Increase)/decrease in inventories (70) 389
(Increase)/decrease in operating receivables (140) 56
Increase/(decrease) in operating payables 102 (216)
Fair value gains on forestry assets (7) (128)
Felling costs 92 87
Net gain on disposal of property, plant and equipment (12) (13)
Insurance reimbursements for property damages (13) (17)
Other adjustments (11) (10)
Cash generated from continuing operations 970 1,312
(b) Cash and cash equivalents
€ million 2024 2023
Cash and cash equivalents per condensed consolidated statement of financial position 278 1,592
Bank overdrafts included in short-term borrowings (9) —
Cash and cash equivalents per condensed consolidated statement of cash flows 269 1,592
The cash and cash equivalents of €278 million (2023: €1,592 million)
include money market funds of €50 million (2023: €840 million) valued at
fair value through profit and loss, with the remaining balance carried at
amortised cost with fair values approximate to the carrying values presented.
The Group operates in certain countries where the existence of exchange
controls or access to hard currency may restrict the use of certain cash
balances outside of those countries. These restrictions are not expected to
have any material effect on the Group’s ability to meet its ongoing
obligations.
(c) Movement in net debt
The Group’s net debt position is as follows:
€ million Cash and cash equivalents Current financial asset investments 1 Debt due within 1 year 2 Debt due after 1 year Debt-related derivative financial instruments 1 Total net debt
At 1 January 2023 1,061 1 (96) (1,970) (7) (1,011)
Cash flow 336 — 40 — 77 453
Cash movement from continuing operations (248) — — — — (248)
Proceeds from borrowings — — (16) — — (16)
Repayment of borrowings — — 33 — — 33
Repayment of lease liabilities — — 22 — — 22
Net cash outflow from debt-related derivative financial instruments — — — — 77 77
Discontinued operations 584 — 1 — — 585
Additions to lease liabilities — — (14) (18) — (32)
Disposal of lease liabilities — — 2 6 — 8
Movement in unamortised loan costs — — (1) (2) — (3)
Net movement in fair value of derivative financial instruments — — — — (63) (63)
Reclassification — — (519) 519 — —
Elimination of assets and liabilities previously classified as held for sale 320 — (1) (23) — 296
Currency movements (125) — 30 28 — (67)
At 31 December 2023 1,592 1 (559) (1,460) 7 (419)
Cash flow (1,311) — 535 (496) 47 (1,225)
Cash movement from continuing operations (1,311) — — — — (1,311)
Proceeds from Eurobonds — — — (496) — (496)
Repayment of Eurobonds — — 500 — — 500
Proceeds from borrowings — — (9) (215) — (224)
Repayment of borrowings — — 18 215 — 233
Repayment of lease liabilities — — 26 — — 26
Net cash outflow from debt-related derivative financial instruments — — — — 47 47
Additions to lease liabilities — — (11) (19) — (30)
Disposal of lease liabilities — — — 2 — 2
Movement in unamortised loan costs — — — (2) — (2)
Net movement in fair value of derivative financial instruments — — — — (49) (49)
Reclassification — — (25) 25 — —
Currency movements (12) (1) 6 (2) — (9)
At 31 December 2024 269 — (54) (1,952) 5 (1,732)
Notes:
1 Included in financial instruments in the condensed consolidated statement
of financial position.
2 Excludes bank overdrafts of €9 million (2023: €nil), which are included
in cash and cash equivalents (see note 14b).
The Group incurred interest expense of €107 million (2023: €122 million)
in relation to bank overdrafts, loans and lease liabilities. Included in this
expense is €35 million (2023: €53 million) relating to forward exchange
rates on derivative contracts and interest paid on borrowings of €44 million
(2023: €50 million).
15 Capital commitments
As at 31 December 2024, capital expenditure contracted for but not recognised
as liabilities is €372 million (as at 31 December 2023: €634 million).
16 Contingent liabilities
The Group’s contingent liabilities as at 31 December 2024 were €nil
(2023: €3 million). No acquired contingent liabilities have been recorded in
the Group’s condensed consolidated statement of financial position for
either year presented.
17 Fair value measurement
Assets and liabilities that are measured at fair value, or where the fair
value of financial instruments has been disclosed in the notes to the
condensed consolidated financial statements, are based on the following fair
value measurement hierarchy:
• Level 1 – quoted prices (unadjusted) in active markets for
identical assets or liabilities
• Level 2 – inputs other than quoted prices included within level 1
that are observable for the asset or liability, either directly (that is, as
prices) or indirectly (that is, derived from prices)
• Level 3 – inputs for the asset or liability that are not based on
observable market data (that is, unobservable inputs)
The assets measured at fair value on level 3 of the fair value measurement
hierarchy are the Group’s forestry assets as set out in note 9 and certain
assets acquired or liabilities assumed in business combinations as set out in
note 13.
There have been no transfers of assets or liabilities between levels of the
fair value hierarchy during the year.
The fair values of financial instruments that are not traded in an active
market (for example, over-the-counter derivatives) require a degree of
estimation and judgement and are determined using generally accepted valuation
techniques. These valuation techniques maximise the use of observable market
data and rely as little as possible on Group-specific estimates.
Specific valuation methodologies used to value financial instruments include
the following:
• The fair values of foreign exchange contracts are calculated as the
present value of expected future cash flows based on observable yield curves
and exchange rates.
• The fair values of the Group’s commodity price derivatives are
calculated as the present value of expected future cash flows based on
observable market data.
• Other techniques, including discounted cash flow analysis, are used
to determine the fair values of other financial instruments.
Except as detailed below, the carrying values of financial instruments at
amortised cost as presented in the condensed consolidated financial statements
approximate their fair values.
Carrying amount Fair value
€ million 2024 2023 2024 2023
Financial liabilities
Borrowings 2,015 2,019 2,010 1,983
18 Related party transactions
The Group and its subsidiaries, in the ordinary course of business, enter into
various sale, purchase and service transactions with associated undertakings
in which the Group has a material interest. These related party transactions
have been contracted on an arm's length basis.
Transactions between Mondi plc and its subsidiaries, which are related
parties, and transactions between its subsidiaries have been eliminated on
consolidation and are not disclosed in this note.
Joint ventures
€ million 2024 2023
Sales to related parties 10 7
Purchases from related parties 587 663
Trade and other receivables from related parties 2 1
Trade and other payables due to related parties 72 86
Loans receivable from related parties 11 11
19 Events occurring after 31 December 2024
Aside from the final ordinary dividend proposed for 2024 (see note 8), there
have been no material reportable events since 31 December 2024.
Production statistics
2024 2023
Continuing operations
Containerboard 000 tonnes 2,345 2,312
Kraft paper 000 tonnes 1,233 1,085
Uncoated fine paper 000 tonnes 938 855
Pulp 000 tonnes 3,725 3,218
Internal consumption 000 tonnes 3,044 2,741
Market pulp 000 tonnes 681 477
Corrugated solutions million m 2 1,899 1,880
Paper bags million units 5,583 5,414
Consumer flexibles million m 2 1,912 1,818
Functional paper and films million m 2 3,067 2,667
Exchange rates
Average Closing
Versus euro 2024 2023 2024 2023
South African rand (ZAR) 19.83 19.96 19.62 20.35
Czech koruna (CZK) 25.12 24.00 25.19 24.72
Polish zloty (PLN) 4.31 4.54 4.28 4.34
Pound sterling (GBP) 0.85 0.87 0.83 0.87
Turkish lira (TRY) 1 35.57 25.76 36.74 32.65
US dollar (USD) 1.08 1.08 1.04 1.11
Note:
1 The Group has applied hyperinflation accounting for its subsidiaries in
Turkiye.
Alternative Performance Measures
The Group presents certain measures of financial performance, position or cash
flows in the condensed consolidated financial statements that are not defined
or specified according to IFRS Accounting Standards in order to provide
additional performance-related measures to its stakeholders. These measures,
referred to as Alternative Performance Measures (APMs), are prepared on a
consistent basis for all periods presented in this report.
By their nature, the APMs used by the Group are not necessarily uniformly
applied by peer companies and therefore may not be comparable with similarly
defined measures and disclosures applied by other companies. Such measures
should not be viewed in isolation or as a substitute to the equivalent IFRS
Accounting Standards measure.
Internally, the Group and its operating segments apply the same APMs in a
consistent manner in planning and reporting on performance to management, the
Executive Committee and the Board. Two of the Group’s APMs, underlying
EBITDA and ROCE, link to the Group’s strategy and form part of the executive
directors' and senior management's remuneration targets.
The most significant APMs used by the Group are described below, together with
a reconciliation to the equivalent IFRS Accounting Standards measure.
The reconciliations are based on Group figures and represent the continuing
operations of the Group, unless otherwise stated. The reporting segment
equivalent APMs are measured in a consistent manner.
APM description and purpose Financial statement reference Closest IFRS equivalent measure
Special items
Special items are generally material, non-recurring items from continuing operations that exceed €10 million. The Audit Committee regularly assesses the monetary Note 4 None
threshold of €10 million on a net basis and considers the threshold in the context of both the Group as a whole and individual operating segment performance. The Group
separately discloses special items on the face of the condensed consolidated income statement to assist its stakeholders in understanding the underlying financial
performance achieved by the Group on a basis that is comparable from year to year. Examples of special item charges or credits include, but are not limited to,
significant restructuring programmes, impairment of assets or cash-generating units, costs associated with potential and achieved acquisitions, profits or losses from the
disposal of businesses, and the settlement of significant litigation or claims. Subsequent adjustments to items previously recognised as special items, including any
related credits received subsequently, continue to be reflected as special items in future periods even if they do not exceed the quantitative reporting threshold.
Subsequent adjustments to items, or charges and credits on items that are closely related, which previously did not qualify for reporting as special items, continue to be
reported in the underlying result even if the cumulative net charge/credit over the years exceeds the €10 million quantitative reporting threshold.
Underlying EBITDA
Operating profit before special items, depreciation, amortisation and impairments not recorded as special items provides a measure of the cash-generating ability of the Condensed consolidated income statement Operating profit
Group's continuing operations that is comparable from year to year. For the Financial review and the Uncoated Fine Paper business unit review, the Group has disclosed
underlying EBITDA excluding forestry fair value gain to improve relative comparability.
Underlying EBITDA margin
Underlying EBITDA expressed as a percentage of Group revenue (segment revenue for operating segments) provides a measure of the cash-generating ability of the Group's None
continuing operations relative to revenue.
APM calculation:
€ million, unless otherwise stated 2024 2023
Underlying EBITDA (see condensed consolidated income statement) 1,049 1,201
Group revenue (see condensed consolidated income statement) 7,416 7,330
Underlying EBITDA margin (%) 14.1 16.4
Underlying operating profit
Operating profit before special items provides a measure of operating performance of the Group's continuing operations that is comparable from year to year. Condensed consolidated income statement Operating profit
Underlying profit before tax
Profit before tax and special items. Underlying profit before tax provides a measure of the Group’s continuing operations' profitability before tax that is comparable Condensed consolidated income statement Profit before tax
from year to year.
Effective tax rate
Underlying tax charge expressed as a percentage of underlying profit before tax. A measure of the tax charge of the Group's continuing operations relative to its profit None
before tax expressed on an underlying basis.
APM calculation:
€ million, unless otherwise stated 2024 2023
Tax charge before special items (see note 6) 117 167
Underlying profit before tax (see condensed consolidated income statement) 528 709
Effective tax rate (%) 22.2 23.6
Underlying earnings (and per share measure)
Net profit after tax before special items arising from the Group's continuing operations that is attributable to shareholders. Underlying earnings (and the related per Note 7 Profit for the period attributable to shareholders (and per share measure)
share measure based on the basic, weighted average number of ordinary shares outstanding) provides a measure of the Group's continuing operations’ earnings.
Total earnings (prior to special items)
Net profit after tax before special items arising from the Group's continuing and discontinued operations that is attributable to shareholders. Total earnings provides a Note 7 Profit for the period attributable to shareholders
measure of the Group’s earnings.
Headline earnings (and per share measure)
The presentation of headline earnings (and the related per share measure based on the basic, weighted average number of ordinary shares outstanding) is mandated under the Note 7 Profit for the period attributable to shareholders (and per share measure)
Listings Requirements of the JSE Limited and is calculated in accordance with Circular 1/2023, ‘Headline Earnings’, as issued by the South African Institute of Chartered
Accountants.
Dividend cover
Basic underlying EPS from continuing operations divided by total ordinary dividend per share paid and proposed provides a measure of the Group’s earnings relative to None
ordinary dividend payments.
APM calculation:
euro cents, unless otherwise stated 2024 2023
Basic underlying EPS (see note 7) 82.7 107.8
Total ordinary dividend per share (see note 8) 70.0 70.0
Dividend cover (times) 1.2 1.5
Capital employed (and related trailing 12-month average capital employed)
Capital employed comprises total equity and net debt. Trailing 12-month average capital employed is the average monthly capital employed over the last 12 months adjusted Note 3 Total equity
for spend on major capital expenditure projects which are not yet in production. These measures provide the level of invested capital in the business. Trailing 12-month
average capital employed is used in the calculation of return on capital employed.
Return on capital employed (ROCE)
Trailing 12-month underlying operating profit, including share of associates' and joint ventures' net profit/(loss), divided by trailing 12-month average capital None
employed. ROCE provides a measure of the efficient and effective use of capital in the business and is presented on the basis of the Group's continuing operations for
comparability.
APM calculation:
€ million, unless otherwise stated 2024 2023
Underlying operating profit (see condensed consolidated income statement) 606 790
Underlying net loss from joint ventures (see condensed consolidated income statement) (3) (5)
Underlying profit from operations and joint ventures 603 785
Trailing 12-month average capital employed of continuing operations (see note 3) 6,283 6,135
ROCE (%) 9.6 12.8
Net debt (and related trailing 12-month average net debt)
A measure comprising short-, medium- and long-term interest-bearing borrowings and the fair value of debt-related derivatives less cash and cash equivalents, net of Note 14c None
overdrafts, and current financial asset investments. Net debt provides a measure of the Group’s net indebtedness or overall leverage. Trailing 12-month average net debt
is the average monthly net debt over the last 12 months.
Net debt to underlying EBITDA
Net debt divided by trailing 12-month underlying EBITDA. A measure of the Group’s net indebtedness relative to its cash-generating ability. None
APM calculation:
€ million, unless otherwise stated 2024 2023
Net debt (see note 14c) 1,732 419
Underlying EBITDA (see condensed consolidated income statement) 1,049 1,201
Net debt to underlying EBITDA (times) 1.7 0.3
Forward-looking statements
This document includes forward-looking statements. All statements other than
statements of historical facts included herein, including, without limitation,
those regarding Mondi’s financial position, business strategy, market growth
and developments, expectations of growth and profitability and plans and
objectives of management for future operations, are forward-looking
statements. Forward-looking statements are sometimes identified by the use of
forward-looking terminology such as “believe”, “expects”, “may”,
“will”, “could”, “should”, “shall”, “risk”, “intends”,
“estimates”, “aims”, “plans”, “predicts”, “continues”,
“assumes”, “positioned” or “anticipates” or the negative thereof,
other variations thereon or comparable terminology. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of Mondi, or
industry results, to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. Such forward-looking statements and other statements contained in
this document regarding matters that are not historical facts involve
predictions and are based on numerous assumptions regarding Mondi’s present
and future business strategies and the environment in which Mondi will operate
in the future. These forward-looking statements speak only as of the date on
which they are made.
No assurance can be given that such future results will be achieved; various
factors could cause actual future results, performance or events to differ
materially from those described in these statements. Such factors include in
particular but without any limitation: (1) operating factors, such as
continued success of manufacturing activities and the achievement of
efficiencies therein, continued success of product development plans and
targets, changes in the degree of protection created by Mondi’s patents and
other intellectual property rights and the availability of capital on
acceptable terms; (2) industry conditions, such as strength of product demand,
intensity of competition, prevailing and future global market prices for
Mondi’s products and raw materials and the pricing pressures thereto,
financial condition of the customers, suppliers and the competitors of Mondi
and potential introduction of competing products and technologies by
competitors; and (3) general economic conditions, such as rates of economic
growth in Mondi’s principal geographical markets or fluctuations of exchange
rates and interest rates.
Mondi expressly disclaims a) any warranty or liability as to accuracy or
completeness of the information provided herein; and b) any obligation or
undertaking to review or confirm analysts’ expectations or estimates or to
update any forward-looking statements to reflect any change in Mondi’s
expectations or any events that occur or circumstances that arise after the
date of making any forward-looking statements, unless required to do so by
applicable law or any regulatory body applicable to Mondi, including the JSE
Limited and the LSE. Any reference to future financial performance included in
this announcement has not been reviewed or reported on by the Group’s
auditors.
Editors’ notes
Mondi is a global leader in packaging and paper, contributing to a better
world by producing products that are sustainable by design. We employ 22,000
people in more than 30 countries and operate an integrated business with
expertise spanning the entire value chain, enabling us to offer our customers
a broad range of innovative solutions for consumer and industrial end-use
applications. Sustainability is at the centre of our strategy, with our
ambitious commitments to 2030 focused on circular driven solutions, created by
empowered people, taking action on climate.
In 2024, Mondi had revenues of €7.4 billion and underlying EBITDA of €1.0
billion. Mondi is listed on the London Stock Exchange in the ESCC category
(MNDI), where the Group is a FTSE100 constituent. It also has a secondary
listing on the JSE Limited (MNP).
mondigroup.com
Sponsor in South Africa: Merrill Lynch South Africa Proprietary Limited t/a
BofA Securities.
Copyright (c) 2025 PR Newswire Association,LLC. All Rights ReservedRecent news on Mondi
See all newsREG-Mondi Plc: Mondi Group - 2024 Final Dividend euro/sterling Exchange Rate
AnnouncementREG-Mondi Plc: Director/PDMR Shareholding
AnnouncementREG-Mondi Plc: Mondi completes acquisition of Western Europe Packaging Assets of Schumacher Packaging
AnnouncementREG-Mondi Plc: Holding(s) in Company
AnnouncementREG - Stock Exch Notice - Admission to Trading - 18/03/2025
Announcement