REG-Mondi Plc: Half-year Report
Thu 07:02
Mondi plc
(Incorporated in England and Wales) ISIN: GB00BMWC6P49
(Registered number: 6209386) LSE share code: MNDI
LEI: 213800LOZA69QFDC9N34 JSE share code: MNP
31 July 2025
Results for the six months ended 30 June 2025
Mondi, a global leader in the production of sustainable packaging and paper,
today announces results for the six months ended 30 June 2025 ("first half"
or "H1 2025").
Highlights
• Underlying EBITDA of €564 million, including €18
million forestry fair value gain, comparable to the first half of 2024 (H1
2024: €565 million including €49 million forestry fair value gain)
• Solid performance in our two packaging businesses
supported by higher average selling prices
• Corrugated Packaging underlying EBITDA of
€203 million, 42% ahead of comparable period (H1 2024: €143 million)
• Flexible Packaging underlying EBITDA of €302 million,
9% ahead of comparable period (H1 2024: €276 million)
• Uncoated Fine Paper delivered underlying EBITDA of
€81 million, including a forestry fair value gain of €18 million (H1
2024: €166 million including a forestry fair value gain of €49 million)
• Good progress delivering key strategic initiatives
• Production and sales ramping up for all major capacity
expansion projects
• Completed the acquisition of the Western Europe
Packaging Assets of Schumacher Packaging (“Schumacher”) on 31 March 2025
with integration and delivery of synergies on track
• Increased cash generated from operations of
€416 million (H1 2024: €372 million)
• Leverage (net debt to underlying EBITDA) of 2.5 times at
30 June 2025, higher following investments to further enhance our portfolio
(31 December 2024: 1.7 times)
• Interim ordinary dividend of 23.33 euro cents per share
declared – in line with H1 2024 (H1 2024: 23.33 euro cents per share)
€ million, except where noted Six months ended 30 June 2025 Six months ended 30 June 2024 Six months ended 31 December 2024
Group revenue 3,909 3,739 3,677
Underlying EBITDA 1 564 565 484
Forestry fair value gain / (loss) 18 49 (42)
Underlying EBITDA excluding forestry fair value gain / (loss) 546 516 526
Underlying EBITDA margin 1 14.4% 15.1% 13.2%
Profit before tax 247 296 82
Basic underlying earnings per share (euro cents) 1 42.7 50.5 32.2
Basic earnings per share (euro cents) 38.6 44.5 4.6
Interim dividend per share (euro cents) 23.33 23.33
Cash generated from operations 416 372 598
Net debt to underlying EBITDA (times) 1 2.5 1.5 1.7
Return on capital employed (ROCE) 1 8.4% 10.8% 9.6%
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 section at the end of this document for
further detail.
Andrew King, Mondi Group Chief Executive Officer, commented:
“In a challenging trading environment we delivered a solid performance with
underlying EBITDA of €564 million. Volume growth, price increases and good
cost control effectively mitigated currency headwinds and inflationary
pressures, a testament to our ongoing focus on proactive margin management and
our culture of continuous improvement. These actions, together with good cash
flow management resulted in improvements in cash generation in the period.
"We continued to make good progress on our key strategic initiatives. All our
major capacity expansion projects are now operational and ramping up
production and sales, and the integration of Schumacher is on track.
“Looking ahead, ongoing geopolitical and macroeconomic uncertainties look
set to continue impacting trading conditions into the second half of the year.
In this environment, we remain focused on delivery of our ongoing
productivity, cost and cash flow optimisation initiatives, while ensuring we
are well positioned for long-term value creation in structurally growing
markets, supported by our integrated, high quality and well invested asset
base."
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 (BST), 10:00 (CET/SAST).
Event registration link:
https://storm-virtual-uk.zoom.us/webinar/register/WN_0XrzORj8Tw-aa5ZUwMnVPA
Once registered, you will receive a confirmation email from ‘Mondi Group
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 e-mail ir@mondigroup.com.
Group performance review
Mondi delivered a solid performance in the first half of 2025 in a challenging
macroeconomic environment, reporting an underlying EBITDA of €564 million,
comparable to the same period last year (H1 2024: €565 million).
Our performance was driven by higher sales volumes and higher average selling
prices coupled with good cost control, offsetting labour cost inflation,
currency headwinds and a reduced forestry fair value gain. In addition, our
results in H1 2024 included a one-off loss from the devaluation of the
Egyptian pound.
There was limited direct impact on our operations from announced tariffs in
the period. While only 2-3% of our revenue is generated from exports into the
US, we remain mindful of the second order impacts affecting trade flows,
consumer confidence and supply chains.
Corrugated Packaging delivered an improved performance with underlying EBITDA
up 42% to €203 million, driven by increased volumes, supported by the ramp
up of capacity from recently completed projects, and higher average
containerboard selling prices. Flexible Packaging delivered an underlying
EBITDA of €302 million, which was in line with H1 2024 after taking into
account the prior period’s one-off loss from the devaluation of the Egyptian
pound. Flexible Packaging saw higher average sales prices but modestly lower
sales volumes in the period. Uncoated Fine Paper continued to win market
share, however market conditions remained muted with sharply lower average
selling prices for both uncoated fine paper and pulp. A reduced forestry fair
value gain was recorded when compared to H1 2024 (H1 2025: €18 million; H1
2024: €49 million). Underlying EBITDA was €81 million (H1 2024:
€166 million).
Basic underlying earnings per share were 42.7 euro cents per share (H1 2024:
50.5 euro cents per share) reflecting higher depreciation and higher finance
costs, as expected, due to a higher average net debt balance.
Our net debt to underlying EBITDA (leverage) increased to 2.5 times at 30 June
2025 (31 December 2024: 1.7 times) as we invested to enhance our customer
product offering and expand our network.
Return on capital employed was 8.4% (31 December 2024: 9.6%) calculated on a
rolling 12-month basis. This result was diluted by the recent investments to
grow our Flexible and Corrugated packaging businesses which are in the early
stage of their three year earnings ramp up, and the acquisition of Schumacher.
An interim ordinary dividend of 23.33 euro cents per share has been declared
– in line with the prior year (H1 2024: 23.33 euro cents per share).
Delivering value accretive growth, sustainably
Mondi has a unique packaging platform which has been significantly enhanced in
recent years and is well positioned to deliver value accretive growth,
sustainably.
Over a number of years, we have invested to adapt to our customers' evolving
packaging and paper requirements, creating a robust, cost-advantaged packaging
Group that prioritises customer-centric growth. These investments have
expanded our footprint, paper-making capabilities, and converting capacity
while enhancing productivity, efficiency, and sustainability performance. This
strategic focus allows us to meet increasing customer demand for innovative
packaging solutions that are sustainable by design, especially within key
end-use markets like eCommerce, FMCG, home care and pet food. By embedding
ourselves deeper into our customers' supply chains, we are further
strengthening our value proposition.
Mondi has completed all major capacity expansion projects on time and on
budget and is now focused on driving returns from these projects. Our newly
started up paper machines at Steti (Czech Republic) and Duino (Italy) are
showing excellent results in terms of paper quality and production volumes,
and we are making good progress executing our commercial strategy. Our new
converting capacity is supporting the growth in eCommerce and FMCG which is
underpinned by customers seeking sustainable packaging alternatives. We remain
confident all our major capacity expansion projects will deliver mid-teen
returns on a through-cycle basis. The incremental underlying EBITDA
contribution in 2025 is expected to be in the range of €50-75 million taking
into account current prices with the larger part of the contribution coming in
the second half of 2025.
We believe we currently have the right capacity, in the right markets, with
room for growth so our customers can receive the high-quality packaging
products they require. We therefore expect a reduction in the amount of
capital required to support organic growth in the near term.
We continue to invest in our assets to drive efficiency, productivity and
sustainability and maintain our cost advantage. Included in our current
capital expenditure plans we have two such projects. At our integrated
Ruzomberok mill (Slovakia), we are investing €120 million, net of subsidies,
to replace the existing boiler with a new biomass powerplant. This will
increase the mill's energy self-sufficiency from 75% to 90% and reduce costs.
At our Richards Bay mill (South Africa) we are investing €150 million to
replace the existing coal-fired boilers with a new biomass boiler in order to
increase our energy self-sufficiency and reduce GHG emissions by up to 350,000
tonnes per annum.
We are very excited by the opportunity that the Schumacher acquisition brings
to Mondi. We welcomed our new colleagues across sites in Germany, the
Netherlands and the UK. The acquisition positions us to better serve customers
across Northern Europe, expands our FMCG and eCommerce offering and opens up
innovation opportunities.
In the three months we have owned Schumacher, we have made good progress
implementing our integration plan and initiating the actions needed to deliver
the €22 million of run rate cost synergies to be achieved over three years.
Commercial ramp up of the combined offering to leverage the under-utilised
Schumacher plants is another cornerstone of the value creation opportunity.
While trading conditions in Northern European corrugated packaging markets are
challenging, we are excited by the commercial opportunities presented by the
enlarged, well-invested business. Our expectations for an underlying EBITDA
contribution this year remain in the region of €30 million.
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 in Europe. We leverage our
integrated production network and partner with our customers to create fully
recyclable corrugated boxes.
€ million, except for percentages Six months ended 30 June 2025 Six months ended 30 June 2024 Six months ended 31 December 2024
Segment revenue 1,298 1,103 1,148
Underlying EBITDA 203 143 185
Underlying EBITDA margin 15.6% 13.0% 16.1%
Capital employed 3,275 2,512 2,609
ROCE 7.8% 5.2% 7.2%
Corrugated Packaging delivered an improved performance compared to the first
half of 2024 with underlying EBITDA of €203 million and a margin of 15.6%
(H1 2024: €143 million, 13.0%). The business delivered sales volume growth
and achieved higher average containerboard selling prices following the
implementation of price increases during the period.
In Containerboard, our sales volumes were up on the prior year as we continue
to meet the growing demand from our customers for our broad range of paper
grades. This volume growth was supported by delivering higher volumes at our
Swiecie mill (Poland) following the completion of the debottlenecking project
at the mill last year, alongside the start up in April 2025 of the 420,000
tonne per annum recycled containerboard machine in Duino (Italy). In addition,
we continue to ramp up production at our Kuopio mill (Finland) following the
modernisation project at the mill. Following some paper quality issues at the
mill during the period, we are again delivering high-quality products to our
customers with the focus now on ramping up to full capacity.
Excluding the sales volumes from the acquired Schumacher plants, Corrugated
Solutions achieved box volume growth in H1 2025 compared to H1 2024 driven by
improved demand for sustainable packaging solutions for consumer and eCommerce
end-use applications. Recent investments at our Simet and Warsaw plants in
Poland have transformed them into state-of-the-art corrugated packaging
facilities, increasing capacity and efficiency.
Flexible Packaging
We are a global flexible packaging producer with a unique portfolio of
solutions. Our products serve a broad range of customers with around 50% of
our revenue generated from industrial end-use applications and the remaining
50% from consumer end-use 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 complex consumer packaging solutions across a range
of substrates with distinct competitive advantages and leadership positions in
our chosen markets.
€ million, except for percentages Six months ended 30 June 2025 Six months ended 30 June 2024 Six months ended 31 December 2024
Segment revenue 2,044 2,024 1,940
Underlying EBITDA 302 276 282
Underlying EBITDA margin 14.8% 13.6% 14.5%
Capital employed 3,531 3,321 3,418
ROCE 11.5% 12.1% 11.5%
Flexible Packaging's underlying EBITDA was higher at €302 million with
margin of 14.8% (H1 2024: €276 million, 13.6%). Higher average selling
prices, good cost control and the non-recurrence of the prior year's one-off
loss from the devaluation of the Egyptian pound were mitigated by currency
headwinds and modestly lower sales volumes.
In Kraft Paper, sales volumes were lower than H1 2024 while average selling
prices were higher following the implementation of price increases during the
period. We achieved kraft paper sales volume growth at our Steti mill (Czech
Republic) primarily due to the new 210,000 tonne per annum machine that
successfully started up at the end of last year. However, this growth was more
than offset by the reduced volumes previously produced at our Stambolijski
mill (Bulgaria) following the site's closure in the second half of 2024. We
continue to ramp up production at Steti supported by improvements in market
demand and the drive for more sustainable solutions.
Paper Bags achieved good sales volume growth supported by the growing demand
for traditional building material and cement applications, as well as
increasing demand for eCommerce solutions.
Consumer Flexibles and Functional Paper and Films continued to provide our
customers with a broad range of innovative and sustainable packaging
solutions, supported by a number of recently completed investments which
enhance our capabilities and consolidate our leading positions in our chosen
markets.
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, except for percentages Six months ended 30 June 2025 Six months ended 30 June 2024 Six months ended 31 December 2024
Segment revenue 619 669 648
Underlying EBITDA 81 166 32
Forestry fair value gain / (loss) 18 49 (42)
Underlying EBITDA excluding forestry fair value gain / (loss) 63 117 74
Underlying EBITDA margin 13.1% 24.8% 4.9%
Capital employed 1,121 1,222 1,133
ROCE 3.6% 20.1% 11.1%
In the first half of 2025, Uncoated Fine Paper continued to gain market share
while focusing on strong cost control in the face of softer market demand.
Underlying EBITDA of €81 million and margin of 13.1% were however below the
comparable prior year period (H1 2024: €166 million, 24.8%) due to lower
average uncoated fine paper and pulp selling prices as well as a lower
forestry fair value gain of €18 million compared to €49 million in H1
2024.
The business delivered stable uncoated fine paper sales volumes compared to
the first half of 2024 against a softer market demand environment, testament
to our broad product portfolio and excellent service. At our integrated
Ruzomberok mill (Slovakia) where we produce both uncoated fine paper and
selected packaging paper grades, we have approved an investment to replace the
existing boiler with a new biomass powerplant which will increase the mill's
energy self-sufficiency and reduce costs.
Market pulp sales volumes were higher in the period compared to H1 2024 driven
by improved production at our Richards Bay mill (South Africa). We are
investing in this facility, which produces market pulp and containerboard, to
replace the existing coal-fired boilers with a new biomass boiler in order to
increase energy self-sufficiency, drive cost efficiencies and improve
environmental performance.
Finance review
Group performance
Mondi delivered Group revenue of €3,909 million and underlying EBITDA of
€564 million (H1 2024: €3,739 million and €565 million,
respectively). Volume growth, higher average selling prices and good cost
control were impacted by labour cost inflation, currency headwinds and a
reduced forestry fair value gain. In addition, our results in H1 2024 included
a loss from the devaluation of the Egyptian pound which did not reoccur in H1
2025.
Input costs were broadly stable compared to the prior year with our
procurement cost-saving initiatives offsetting the impact of higher average
energy and paper for recycling prices. As we enter the second half of the
year, we expect modest input cost relief, supported by our ongoing efficient
procurement practices.
Maintenance costs were similar to the prior year. The underlying EBITDA impact
of planned maintenance shuts was also inline with the comparable prior year
period totalling around €20 million, all incurred in the second quarter. We
continue to expect the impact from planned maintenance shuts in the second
half of the year to be around €80 million, split relatively evenly between
the third and fourth quarter of the year.
While personnel costs were higher as a result of labour cost inflation and the
inclusion of the acquired Schumacher business, good cost control drove other
net operating expenses lower when excluding the impact of the reduced forestry
fair value gain and the prior year's one-off loss from the Egyptian pound
devaluation.
Depreciation and amortisation charges of €236 million increased
year-on-year (H1 2024: €210 million) as a result of starting up a number of
capital investment projects and the inclusion of the Schumacher acquisition.
Due to this acquisition, we expect depreciation and amortisation charges of
€475-500 million in 2025 (previous guidance of €450-475 million which
excluded the Schumacher acquisition).
Net finance costs of €53 million were higher than prior year (H1 2024:
€31 million) driven by a higher average net debt balance. The issuance of a
€600 million Eurobond in March 2025 further strengthens the Group's
liquidity position and extends our debt maturity profile. Our full year
expectation for net finance costs in 2025 has increased from around €90
million to around €110 million due to the debt-financed acquisition of
Schumacher.
The underlying tax charge for the half year was €61 million giving an
effective tax rate of 22.4% (H1 2024: €71 million, 22.0%). We continue to
expect the full year's effective tax rate to remain at around 23%.
As a result, basic underlying earnings were 42.7 euro cents per share (H1
2024: 50.5 euro cents per share). After taking the after tax charge of special
items into account, which totalled €18 million and mostly comprised
transaction costs relating to the Schumacher acquisition (H1 2024 total
special items after tax charge of €27 million), basic earnings were 38.6
euro cents per share (H1 2024: 44.5 euro cents per share).
Cash flow
Cash generated from operations was higher at €416 million (H1 2024:
€372 million) which included a working capital cash outflow of €130
million (H1 2024: outflow of €160 million). This was mainly as a result of
higher trade receivable balances at 30 June 2025 following price increases
achieved during the period. We expect a working capital inflow in the second
half of the year.
Capital expenditure cash payments in the half year were €349 million (H1
2024: €397 million). We continue to expect the full year to be €750-850
million which includes payments in respect of our investments to improve
efficiency, reduce environmental impacts and increase energy self-sufficiency,
as well as the final amounts due for our major growth projects. This amount
also includes Schumacher's capital expenditure cash payments in the year. In
2026, we expect around €650 million capital expenditure for the Group.
Tax paid was €40 million (H1 2024: €71 million) and interest paid was
€50 million (H1 2024: €43 million).
The Group returned €202 million of dividends to shareholders during the
period in respect of the payment of the 2024 final ordinary dividend (H1 2024:
€209 million in respect of the 2023 final ordinary dividend).
Liquidity, treasury and borrowings
Net debt at 30 June 2025 was higher at €2,639 million with net debt to
underlying EBITDA at 2.5 times (31 December 2024: €1,732 million, 1.7
times) as we invested to enhance our customer product offering and expand our
network.
Effective from January 2025, we increased our Syndicated Revolving Credit
Facility (RCF) by €250 million from €750 million up to €1 billion. In
addition, we issued a 3.75% €600 million Eurobond with an 8-year tenor in
March 2025. These actions further strengthen the Group’s liquidity position
and extend our debt maturity profile. At 30 June 2025, we had available
liquidity of around €1 billion comprising €850 million of undrawn
committed debt facilities and cash and cash equivalents of €159 million.
The only significant debt maturity in the near term is our 1.625% €600
million Eurobond that is due to mature in April 2026. We expect to redeem this
Eurobond from available facilities. At 30 June 2025, the weighted average
maturity of our committed debt facilities was 4.0 years. Our financing
agreements do not contain financial covenants.
The Group maintains an investment grade credit rating and has an A- (negative
outlook) credit rating from Standard & Poor’s and a Baa1 (stable outlook)
credit rating from Moody's.
Principal risks and uncertainties
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, in 2025, 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 within the risk appetite levels
established.
There were no changes to the Group’s principal risks as set out on pages 60
to 69 of the Integrated report and financial statements 2024.
Our principal risks are the following:
Strategic risks:
• Industry productive capacity
• Product substitution
• Fluctuations and variability in selling prices or gross
margins
• Country risk
• Climate change risks
Financial risks:
• Capital structure
• Currency risk
• Tax risk
Operational risks:
• 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:
• Reputational risk
Going concern
The directors have reviewed the Group’s current financial position and
performance expectations for the period until 31 December 2026, including
consideration of the principal risks which may impact the Group’s
performance in the near term. As the Group’s debt facilities and loan
agreements do not contain financial covenants, the directors have focused on
liquidity in performing their going concern assessment. At 30 June 2025, the
Group had available liquidity of around €1 billion comprising
€850 million of undrawn committed debt facilities and cash and cash
equivalents of €159 million. The only significant debt maturity in the near
term is our 1.625% €600 million Eurobond that is due to mature in April
2026. We expect to redeem this Eurobond from existing available facilities.
The Group has prepared a base case forecast reflecting recent trading
performance in the first half of the year and market development expectations
for the period to 31 December 2026. The base case forecast was sensitised to
reflect a severe but plausible downside scenario including possible future
impacts from the principal risks on the Group's performance. In such a
scenario, there remains significant liquidity headroom.
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. A decline of 52% to the planned
underlying EBITDA in the period until 31 December 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 their 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 six months
ended 30 June 2025.
Directors’ responsibility statement
The directors confirm that to the best of their knowledge:
• the condensed consolidated financial statements of the
Group have been prepared in accordance with International Accounting
Standard 34, ‘Interim Financial Reporting’, as adopted for use in the
United Kingdom, and the Disclosure Guidance and Transparency Rules sourcebook
of the United Kingdom’s Financial Conduct Authority and that the half year
results announcement includes a fair review of the information required by DTR
4.2.7 and DTR 4.2.8, namely:
• the half year results announcement includes a fair
review of the significant events during the six months ended 30 June 2025
and their impact on the condensed consolidated financial statements and a
description of the principal risks and uncertainties for the remaining six
months of the year ending 31 December 2025;
• there have been no significant individual related party
transactions during the first six months of the financial year; and
• there have been no significant changes in the Group’s
related party relationships from those reported in the Integrated report and
financial statements 2024.
The Group’s condensed consolidated financial statements, and related notes,
were approved by the Board and authorised for issue on 30 July 2025 and were
signed on its behalf by:
Andrew King Mike Powell
Director Director
30 July 2025
Independent review report to Mondi plc
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed Mondi plc’s condensed consolidated interim financial
statements (the “interim financial statements”) in the half year results
announcement of Mondi plc for the six month period ended 30 June 2025 (the
“period”).
Based on our review, nothing has come to our attention that causes us to
believe that the interim financial statements are not prepared, in all
material respects, in accordance with UK-adopted International Accounting
Standard 34, ‘Interim Financial Reporting’ and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom’s Financial Conduct
Authority.
The interim financial statements comprise:
• the condensed consolidated statement of financial
position as at 30 June 2025;
• the condensed consolidated income statement and the
condensed consolidated statement of comprehensive income for the period then
ended;
• the condensed consolidated statement of cash flows for
the period then ended;
• the condensed consolidated statement of changes in
equity for the period then ended; and
• the explanatory notes to the interim financial
statements.
The interim financial statements included in the half year results
announcement of Mondi plc have been prepared in accordance with UK-adopted
International Accounting Standard 34, ‘Interim Financial Reporting’ and
the Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom’s Financial Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, ‘Review of Interim Financial Information Performed by
the Independent Auditor of the Entity’ issued by the Financial Reporting
Council for use in the United Kingdom (“ISRE (UK) 2410”). A review of
interim financial information consists of making enquiries, primarily of
persons responsible for financial and accounting matters, and applying
analytical and other review procedures.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and, consequently, does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express
an audit opinion.
We have read the other information contained in the half year results
announcement and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the interim financial
statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with ISRE (UK) 2410. However, future events
or conditions may cause the group to cease to continue as a going concern.
Responsibilities for the interim financial statements and the review
Our responsibilities and those of the directors
The half year results announcement, including the interim financial
statements, is the responsibility of, and has been approved by the directors.
The directors are responsible for preparing the half year results announcement
in accordance with the Disclosure Guidance and Transparency Rules sourcebook
of the United Kingdom’s Financial Conduct Authority. In preparing the half
year results announcement, including the interim financial statements, the
directors are responsible for assessing the group’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the directors either intend
to liquidate the group or to cease operations, or have no realistic
alternative but to do so.
Our responsibility is to express a conclusion on the interim financial
statements in the half year results announcement based on our review. Our
conclusion, including our Conclusions relating to going concern, is based on
procedures that are less extensive than audit procedures, as described in the
Basis for conclusion paragraph of this report. This report, including the
conclusion, has been prepared for and only for the company for the purpose of
complying with the Disclosure Guidance and Transparency Rules sourcebook of
the United Kingdom’s Financial Conduct Authority and for no other purpose.
We do not, in giving this conclusion, accept or assume responsibility for any
other purpose or to any other person to whom this report is shown or into
whose hands it may come save where expressly agreed by our prior consent in
writing.
PricewaterhouseCoopers LLP
Chartered Accountants
London
30 July 2025
Condensed consolidated income statement
for the six months ended 30 June 2025
Six months ended 30 June 2025 Six months ended 30 June 2024
€ million Notes Underlying Special items Total Underlying Special items Total
(Note 4) (Note 4)
Group revenue 3 3,909 — 3,909 3,739 — 3,739
Materials, energy and consumables used (1,957) — (1,957) (1,859) — (1,859)
Variable selling expenses (348) — (348) (331) — (331)
Gross margin 1,604 — 1,604 1,549 — 1,549
Maintenance and other indirect expenses (184) — (184) (180) — (180)
Personnel costs (673) (1) (674) (612) (12) (624)
Other net operating expenses (183) (24) (207) (192) (15) (207)
EBITDA 3 564 (25) 539 565 (27) 538
Depreciation, amortisation and impairments (236) — (236) (210) — (210)
Operating profit 3 328 (25) 303 355 (27) 328
Net loss from joint ventures — — — (2) — (2)
Net finance costs (53) — (53) (31) — (31)
Investment income 6 — 6 19 — 19
Foreign currency gains/(losses) 1 — 1 (3) — (3)
Finance costs (60) — (60) (47) — (47)
Net monetary (loss)/gain arising from hyperinflationary economies (3) — (3) 1 — 1
Profit before tax 272 (25) 247 323 (27) 296
Tax (charge)/credit (61) 7 (54) (71) — (71)
Profit for the period 211 (18) 193 252 (27) 225
Attributable to:
Non-controlling interests 23 — 23 26 — 26
Shareholders 188 (18) 170 226 (27) 199
Earnings per share (EPS) attributable to shareholders
euro cents
Basic EPS 5 38.6 44.5
Diluted EPS 5 38.6 44.5
Basic underlying EPS 5 42.7 50.5
Diluted underlying EPS 5 42.7 50.5
Condensed consolidated statement of comprehensive income
for the six months ended 30 June 2025
€ million Six months ended 30 June 2025 Six months ended 30 June 2024
Profit for the period 193 225
Items that may subsequently be or have been reclassified to the condensed consolidated income statement
Fair value gains/(losses) arising from cash flow hedges 2 (2)
Exchange differences on translation of foreign non-euro operations (81) 52
Items that will not subsequently be reclassified to the condensed consolidated income statement
Remeasurements of retirement benefits plans 4 4
Tax effect thereof (1) (1)
Other comprehensive (expense)/income for the period (76) 53
Attributable to:
Non-controlling interests (10) 7
Shareholders (66) 46
Total comprehensive income for the period 117 278
Attributable to:
Non-controlling interests 13 33
Shareholders 104 245
Condensed consolidated statement of financial position
as at 30 June 2025
€ million Notes As at 30 June 2025 As at 31 December 2024
Property, plant and equipment 5,542 5,160
Goodwill 9 956 767
Intangible assets 72 70
Forestry assets 7 471 503
Investments in joint ventures 11 5
Financial instruments 24 29
Deferred tax assets 23 22
Net retirement benefits asset 1 3
Other non-current assets 2 3
Total non-current assets 7,102 6,562
Inventories 1,253 1,194
Trade and other receivables 1,520 1,275
Current tax assets 18 22
Financial instruments 12 10
Cash and cash equivalents 10b 168 278
Total current assets 2,971 2,779
Total assets 10,073 9,341
Short-term borrowings 8 (671) (63)
Trade and other payables (1,356) (1,281)
Current tax liabilities (68) (67)
Provisions (43) (65)
Financial instruments (8) (9)
Total current liabilities (2,146) (1,485)
Medium and long-term borrowings 8 (2,139) (1,952)
Net retirement benefits liability (154) (161)
Deferred tax liabilities (343) (342)
Non-current tax liabilities (4) —
Provisions (33) (32)
Other non-current liabilities (20) (19)
Total non-current liabilities (2,693) (2,506)
Total liabilities (4,839) (3,991)
Net assets 5,234 5,350
Equity
Share capital 97 97
Own shares (16) (20)
Retained earnings 4,555 4,582
Other reserves 123 198
Total attributable to shareholders 4,759 4,857
Non-controlling interests in equity 475 493
Total equity 5,234 5,350
The Group’s condensed consolidated financial statements, including related
notes 1 to 13, were approved by the Board and authorised for issue on 30 July
2025 and were signed on its behalf by:
Andrew King Mike Powell
Director Director
Mondi plc company registered number: 6209386
Condensed consolidated statement of changes in equity
for the six months ended 30 June 2025
€ million Equity attributable to shareholders Non-controlling interests Total equity
At 1 January 2025 4,857 493 5,350
Total comprehensive income for the period 104 13 117
Profit for the period 170 23 193
Other comprehensive expense (66) (10) (76)
Hyperinflation monetary adjustment 1 — 1
Transactions with shareholders in their capacity as shareholders
Dividends (202) (31) (233)
Purchases of own shares (8) — (8)
Other 7 — 7
At 30 June 2025 4,759 475 5,234
€ million Equity attributable to shareholders Non-controlling interests Total equity
At 1 January 2024 5,655 441 6,096
Total comprehensive income for the period 245 33 278
Profit for the period 199 26 225
Other comprehensive income 46 7 53
Hyperinflation monetary adjustment 4 — 4
Transactions with shareholders in their capacity as shareholders
Dividends (978) (4) (982)
Purchases of own shares (5) — (5)
Injection from non-controlling interests — 3 3
Other 6 — 6
At 30 June 2024 4,927 473 5,400
Equity attributable to shareholders
€ million As at 30 June 2025 As at 31 December 2024
Share capital 97 97
Own shares (16) (20)
Retained earnings 4,555 4,582
Cumulative translation adjustment reserve (527) (456)
Post-retirement benefits reserve (58) (59)
Share-based payment reserve 13 19
Cash flow hedge reserve 1 —
Merger reserve 667 667
Other sundry reserves 27 27
Total 4,759 4,857
Condensed consolidated statement of cash flows
for the six months ended 30 June 2025
€ million Notes Six months ended 30 June 2025 Six months ended 30 June 2024
Cash flows from operating activities
Cash generated from operations 10a 416 372
Income tax paid (40) (71)
Net cash generated from operating activities 376 301
Cash flows from investing activities
Investment in property, plant and equipment (349) (397)
Investment in intangible assets (6) (8)
Investment in forestry assets 7 (24) (23)
Proceeds from the disposal of property, plant and equipment 14 3
Acquisition of businesses, net of cash and cash equivalents 9 (497) (6)
Loans advanced to related and external parties (1) (1)
Interest received 5 22
Other investing activities 7 11
Net cash used in investing activities (851) (399)
Cash flows from financing activities
Proceeds from issue of Eurobond 8 592 496
Repayment of Eurobond — (500)
Proceeds from medium and long-term borrowings 10c 177 215
Repayment of medium and long-term borrowings 10c (16) (215)
Proceeds from short-term borrowings 10c 7 8
Repayment of short-term borrowings 10c (67) (11)
Repayment of lease liabilities 10c (15) (13)
Interest paid 10c (50) (43)
Dividends paid to shareholders 6 (202) (978)
Dividends paid to non-controlling interests (31) (4)
Purchases of own shares (8) (5)
Injection from non-controlling interests — 3
Net cash outflow from debt-related derivative financial instruments 10c (15) (23)
Net cash generated from/(used in) financing activities 372 (1,070)
Net decrease in cash and cash equivalents (103) (1,168)
Cash and cash equivalents at beginning of period 269 1,592
Cash movement in the period 10c (103) (1,168)
Effects of changes in foreign exchange rates 10c (7) (13)
Cash and cash equivalents at end of period 10b 159 411
Notes to the condensed consolidated financial statements
for the six months ended 30 June 2025
1 Basis of preparation
These condensed consolidated financial statements as at and for the six months
ended 30 June 2025 comprise Mondi plc and its subsidiaries (together
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 prepared
in accordance with International Accounting Standard 34, ‘Interim Financial
Reporting’, as adopted for use in the United Kingdom (UK), and the
Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom’s Financial Conduct Authority. They should be read in conjunction
with the Group’s Integrated report and financial statements 2024, 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 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.
The financial information set out above does not constitute statutory accounts
as defined by section 434 of the Companies Act 2006. A copy of the statutory
accounts for the year ended 31 December 2024 has been delivered to the
Registrar of Companies. 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. The financial information set out above has been
reviewed, not audited.
The preparation of the condensed consolidated financial statements includes
the use of estimates and assumptions. Although the estimates used are based on
management's best information about current circumstances and future events
and actions, actual results may differ from these estimates. In preparing
these condensed consolidated financial statements, the significant accounting
estimates were the same as those identified in the Group’s Integrated report
and financial statements 2024.
2 Accounting policies
The same accounting policies and Alternative Performance Measures (APMs), as
defined at the end of this document, methods of computation and presentation
have been followed in the preparation of the condensed consolidated financial
statements for the six months ended 30 June 2025 as were applied in the
preparation of the Group’s annual financial statements for the year ended
31 December 2024.
Income tax expense is recognised based on management’s estimate of the
weighted average effective income tax rate before special items, an APM as
defined at the end of this document, expected for the full financial year.
Amendments to IAS 21 – The Effects of Changes in Foreign Exchange Rates –
Lack of Exchangeability became effective for the financial period beginning on
1 January 2025, but the Group did not have to change its accounting policies
or make any retrospective adjustments as a result of adopting these
amendments.
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 comprise three
distinct segments.
Six months ended 30 June 20251
€ million, unless otherwise stated Corrugated Packaging Flexible Packaging Uncoated Fine Paper Corporate Intersegment elimination Group
Segment revenue 1,298 2,044 619 — (52) 3,909
Internal revenue (12) (11) (29) — 52 —
External revenue 1,286 2,033 590 — — 3,909
Underlying EBITDA 203 302 81 (22) — 564
Depreciation, amortisation and impairments (95) (107) (34) — — (236)
Underlying operating profit/(loss) 108 195 47 (22) — 328
Special items before tax (23) (2) — — — (25)
Capital employed 3,275 3,531 1,121 (54) — 7,873
Trailing 12-month average capital employed 2,600 3,211 1,124 (70) — 6,865
Additions to non-current non-financial assets 632 179 74 — — 885
Capital expenditure cash payments 119 183 47 — — 349
Underlying EBITDA margin (%) 15.6 14.8 13.1 — — 14.4
Return on capital employed (%) 7.8 11.5 3.6 — — 8.4
Average number of employees (thousands) 2 7.1 11.9 2.7 0.1 — 21.8
Six months ended 30 June 20241
€ million, unless otherwise stated Corrugated Packaging Flexible Packaging Uncoated Fine Paper Corporate Intersegment elimination Group
Segment revenue 1,103 2,024 669 — (57) 3,739
Internal revenue (11) (18) (28) — 57 —
External revenue 1,092 2,006 641 — — 3,739
Underlying EBITDA 143 276 166 (20) — 565
Depreciation, amortisation and impairments (78) (99) (33) — — (210)
Underlying operating profit/(loss) 65 177 133 (20) — 355
Special items before tax — (14) — (13) — (27)
Capital employed 2,512 3,321 1,222 (52) — 7,003
Trailing 12-month average capital employed 2,074 3,039 1,097 (122) — 6,088
Additions to non-current non-financial assets 133 219 69 — — 421
Capital expenditure cash payments 137 218 42 — — 397
Underlying EBITDA margin (%) 13.0 13.6 24.8 — — 15.1
Return on capital employed (%) 5.2 12.1 20.1 — — 10.8
Average number of employees (thousands) 2 6.5 11.9 2.7 0.1 — 21.2
Year ended 31 December 20241
€ million, unless otherwise stated Corrugated Packaging Flexible Packaging Uncoated Fine Paper Corporate Intersegment elimination Group
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 (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) 2 6.4 12.0 2.7 0.1 — 21.2
Notes:
1 See definitions of APMs at the end of this document.
2 Presented on a full time employee equivalent basis.
External revenue by location of contribution and by location of customer
External revenue by location of contribution External revenue by location of customer
€ million Six months ended 30 June 2025 Six months ended 30 June 2024 Six months ended 30 June 2025 Six months ended 30 June 2024
Western Europe
Austria 632 657 83 85
Germany 372 284 546 478
United Kingdom 7 1 111 100
Rest of western Europe 381 336 932 839
Western Europe total 1,392 1,278 1,672 1,502
Emerging Europe
Czech Republic 394 370 133 130
Poland 724 648 359 366
Turkiye 200 225 227 254
Rest of emerging Europe 442 474 275 269
Emerging Europe total 1,760 1,717 994 1,019
Africa
South Africa 302 322 204 249
Rest of Africa 41 46 171 186
Africa total 343 368 375 435
North America 360 325 456 423
South America 2 5 76 43
Asia and Australia 52 46 336 317
Group revenue 3,909 3,739 3,909 3,739
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 Six months ended 30 June 2025 Six months ended 30 June 2024
Operating special items
Restructuring and closure costs:
Personnel costs (1) (12)
Other restructuring and closure costs (1) (2)
Costs relating to the acquisition of the Western Europe Packaging Assets of Schumacher Packaging (23) —
Costs relating to the aborted all-share combination with DS Smith plc — (13)
Total special items before tax (25) (27)
Tax credit 7 —
Total special items (18) (27)
The operating special items resulted in a cash outflow from operating
activities for the six months ended 30 June 2025 of €28 million (six
months ended 30 June 2024: €18 million).
The special items during the period ended 30 June 2025 comprised:
• Corrugated Packaging
• Transaction costs of €23 million were recognised relating to the
acquisition of the Western Europe Packaging Assets of Schumacher Packaging.
€5 million were recognised in the second half of 2024 with total costs
accumulating to €28 million (see note 9).
• Flexible Packaging
• In H1 2024 management announced the closure of a paper bags plant in
Maastricht (Netherlands). Release of restructuring and closure provision of
€2 million were recognised during H1 2025. Total costs accumulate to €11
million.
• In H2 2024 management announced the closure of a paper bags plant in
Pine Bluff (USA). Additional restructuring and closure costs of €3 million
were recognised during H1 2025. Total costs accumulate to €12 million.
• Closure of Stambolijski paper mill (Bulgaria) following a fire in
September 2024. Additional restructuring and closure costs of €1 million
were recognised during H1 2025. Total costs accumulate to €111 million.
Details of the special items for the year ended 31 December 2024 were
disclosed in note 3 of the Group’s Integrated report and financial
statements 2024.
5 Earnings per share (EPS)
EPS attributable to shareholders
euro cents Six months ended 30 June 2025 Six months ended 30 June 2024
Basic EPS 38.6 44.5
Diluted EPS 38.6 44.5
Basic underlying EPS 42.7 50.5
Diluted underlying EPS 42.7 50.5
Basic headline EPS 37.2 41.8
Diluted headline EPS 37.2 41.8
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 Six months ended 30 June 2025 Six months ended 30 June 2024
Profit for the period attributable to shareholders 170 199
Special items (see note 4) 25 27
Related tax (see note 4) (7) —
Underlying earnings 188 226
Gain on disposal of property, plant and equipment (3) (2)
Insurance reimbursements for property damages (4) —
Restructuring and closure costs (see note 4) (2) (14)
Costs relating to the aborted all-share combination with DS Smith plc (see note 4) — (13)
Costs relating to the acquisition of the Western Europe Packaging Assets of Schumacher Packaging (see note 4) (23) —
Gain on purchase of business before transaction-related costs — (13)
Loss arising from sale and leaseback transaction — 3
Related tax 8 —
Headline earnings for the period 164 187
Underlying earnings and headline earnings represent APMs which are defined at
the end of this document.
Weighted average number of shares
million Six months ended 30 June 2025 Six months ended 30 June 2024
Basic number of ordinary shares outstanding 440.7 447.2
Diluted number of ordinary shares outstanding 440.7 447.2
The weighted average number of shares was prospectively adjusted from 13
February 2024 to reflect the impact of the share consolidation and special
dividend, which together were accounted for as a share repurchase at fair
value, as described in note 9 of the Group’s Integrated report and financial
statements 2024.
6 Dividends
The interim ordinary dividend for the year ending 31 December 2025 of 23.33
euro cents per ordinary share will be paid on Friday 26 September 2025 to
those shareholders on the register of Mondi plc on Friday 22 August 2025. The
dividend will be paid from distributable reserves of Mondi plc, as presented
in the annual financial statements for the year ended 31 December 2024. The
interim ordinary dividend is not recognised as a liability at 30 June 2025.
Six months ended 30 June 2025 Year ended 31 December 2024
euro cents € million euro cents € million
per share per share
Final ordinary dividend in respect of prior year 46.67 202 46.67 209
Special dividend — — 160.00 769
Interim ordinary dividend in respect of current year 23.33 103 23.33 103
The interim ordinary dividend declared for the year ended 31 December 2024 of
23.33 euro cents per ordinary share was paid in September 2024.
Dividend timetable
The interim ordinary dividend for the year ending 31 December 2025 will be
paid in accordance with the following timetable:
Last date to trade shares cum-dividend
JSE Limited Tuesday 19 August 2025
London Stock Exchange Wednesday 20 August 2025
Shares commence trading ex-dividend
JSE Limited Wednesday 20 August 2025
London Stock Exchange Thursday 21 August 2025
Record date Friday 22 August 2025
Last date for receipt of Dividend Reinvestment Plan (DRIP) elections by Central Securities Depository Participants Thursday 28 August 2025
Last date for DRIP elections to UK Registrar and South African Transfer Secretaries
South African Register Friday 29 August 2025
UK Register Monday 8 September 2025
Payment Date Friday 26 September 2025
DRIP purchase settlement dates (subject to market conditions and the purchase of shares in the open market)
UK Register Tuesday 30 September 2025
South African Register Thursday 2 October 2025
Results of Dividend Reinvestment Plan announcement released Friday 10 October 2025
Currency conversion dates
ZAR/euro Thursday 31 July 2025
Euro/sterling Friday 12 September 2025
Share certificates on Mondi plc's South African register may not be
dematerialised or rematerialised between Wednesday 20 August 2025 and Friday
22 August 2025, both dates inclusive, nor may transfers between the UK and
South African registers of Mondi plc take place between Wednesday 13
August 2025 and Friday 22 August 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 31 July 2025.
7 Forestry assets
€ million As at 30 June 2025 As at 30 June 2024 As at 31 December 2024
At 1 January 503 519 519
Investment in forestry assets 24 23 48
Fair value gains 18 49 7
Disposal of assets (1) — —
Felling costs (44) (47) (92)
Currency movements (29) 23 21
At 30 June / 31 December 471 567 503
The fair value of forestry assets is determined using a market-based approach
and is a level 3 measure in terms of the fair value measurement hierarchy (see
note 11), consistent with prior year. The valuation process and key observable
inputs, including the sensitivity analyses, were largely in line with those
applied for the year ended 31 December 2024, as described in note 15 of the
Group’s Integrated report and financial statements 2024.
8 Borrowings
Financing facilities
The primary sources of the Group’s liquidity include its €3 billion
Guaranteed Euro Medium Term Note Programme, its Syndicated Revolving Credit
Facility (RCF), which was increased from €750 million 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 % As at 30 June 2025 As at 31 December 2024
Financing facilities
Syndicated Revolving Credit Facility June 2028 EURIBOR + margin 1,000 750
€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% 500 500
€600 million Eurobond May 2033 3.750% 600 —
Long-Term Facility Agreements December 2026-June 2031 Various 24 13
Total committed facilities 3,474 2,613
Drawn (2,624) (1,863)
Total committed facilities available 850 750
The Group’s Eurobonds incur a fixed rate of interest. Foreign exchange 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.
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.
In March 2025, the Group issued a new €600 million 8-year Eurobond maturing
in May 2033 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.
Short-term liquidity needs are met by cash and the RCF. As at 30 June 2025,
the Group had no financial covenants in any of its financing facilities.
The Group currently has investment grade credit ratings from both Moody’s
Investors Service (Baa1, outlook stable) and Standard & Poor’s (A-, outlook
negative).
As at 30 June 2025 As at 31 December 2024
€ million Current Non-current Total Current Non-current Total
Secured
Lease liabilities 36 140 176 24 104 128
Total secured 36 140 176 24 104 128
Unsecured
Bonds 600 1,836 2,436 — 1,842 1,842
Bank loans and overdrafts 35 163 198 39 6 45
Total unsecured 635 1,999 2,634 39 1,848 1,887
Total borrowings 671 2,139 2,810 63 1,952 2,015
Committed facilities drawn 2,624 1,863
Uncommitted facilities drawn 186 152
9 Business combinations
To 30 June 2025
On 31 March 2025, the Group completed the acquisition of Schumacher
Packaging’s Western European corrugated converting and solid board
operations (Schumacher) for a consideration of €506 million fully paid in
cash.
The acquisition 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 for eCommerce end-use applications.
Since the date of acquisition, Schumacher's revenue of €99 million and loss
for the period of €7 million have been included in the condensed
consolidated income statement. If the acquisition had occurred on 1 January
2025, the Group’s consolidated revenue and profit for the period (after
special items) for the six months ended 30 June 2025 would have been
€4,016 million and €193 million respectively.
The provisional fair values of the net assets acquired are as follows:
€ million Provisional fair value
Net assets acquired
Property, plant and equipment 303
Intangible assets 2
Inventories 54
Trade and other receivables 105
Cash and cash equivalents 9
Assets held for sale 1
Total assets 474
Trade and other payables (42)
Deferred tax liabilities (2)
Other provisions (1)
Total liabilities (45)
Short-term borrowings (73)
Medium and long-term borrowings (43)
Debt assumed (116)
Net assets acquired 313
Goodwill arising on acquisition 194
Non-controlling interests in equity (1)
Cash acquired net of overdrafts (9)
Net cash paid per condensed consolidated statement of cash flows 497
The Group incurred total transaction costs of €28 million, with
€23 million recognised in 2025 and €5 million in the second half of 2024.
The transaction costs were treated as a special item within other net
operating expenses in the condensed consolidated income statement (see note
4).
The acquisition included several legal entities and was executed through a
combination of share and asset deals. The acquisition constitutes a business
accounted for under IFRS 3, 'Business Combinations'. The share deals involved
100% of the shares in the entities with the exception of a few immaterial
entities with non-controlling interest. The non-controlling interest for these
entities was recognised as the proportion of the provisional fair values of
the assets and liabilities recognised at acquisition.
The fair value accounting of this acquisition is provisional pending the
completion of the purchase price allocation due to the size and complexity of
the transaction, and the acquisition date being in close proximity to the
reporting date. The provisional fair values of the net assets acquired will be
adjusted within the 12 months measurement period, as permitted under IFRS 3,
which is expected to occur in the second half of 2025.
On this basis, goodwill of €194 million was determined based on the
provisional fair values of the net assets acquired and was fully allocated to
the Corrugated Packaging operating segment. The goodwill is attributable to
identified cost synergies, broad range of capabilities in production and
associated services, and the expansion of the product range and geographic
reach of the Group's corrugated packaging business.
Goodwill reconciliation
€ million As at 30 June 2025
Net carrying value
At 1 January 767
Acquired through business combinations 194
Hyperinflation monetary adjustments 5
Currency movements (10)
At 30 June 2025 956
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. Details
of this business combination were disclosed in note 26 of the Group’s
Integrated report and financial statements 2024.
10 Consolidated cash flow analysis
(a) Reconciliation of profit before tax to cash generated from operations
€ million Six months ended 30 June 2025 Six months ended 30 June 2024
Profit before tax 247 296
Depreciation, amortisation and impairments 236 210
Share-based payments 7 6
Net pre-tax cash flow effect of current and prior period special items (3) 9
Net finance costs 53 31
Net monetary loss/(gain) arising from hyperinflationary economies 3 (1)
Net loss from joint ventures — 2
(Decrease)/increase in provisions (11) 8
Decrease in net retirement benefits (2) (5)
Movement in working capital (130) (160)
Increase in inventories (17) (50)
Increase in operating receivables (220) (275)
Increase in operating payables 107 165
Fair value gains on forestry assets (18) (49)
Felling costs 44 47
Net gain on disposal of property, plant and equipment (3) (2)
Insurance reimbursements for property damages (4) (11)
Other adjustments (3) (9)
Cash generated from operations 416 372
(b) Cash and cash equivalents
€ million As at 30 June 2025 As at 30 June 2024 As at 31 December 2024
Cash and cash equivalents per condensed consolidated statement of financial position 168 415 278
Bank overdrafts included in short-term borrowings (9) (4) (9)
Cash and cash equivalents per condensed consolidated statement of cash flows 159 411 269
The cash and cash equivalents of €168 million (as at 31 December 2024:
€278 million) include money market funds of €nil (as at 31 December 2024:
€50 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 Debt due within one year 1 Debt due after one year Debt-related derivative financial instruments Total net debt
At 1 January 2025 269 (54) (1,952) 5 (1,732)
Cash flow (103) 75 (753) 15 (766)
Cash movement in the period (103) — — — (103)
Proceeds from issue of Eurobond — — (592) — (592)
Proceeds from borrowings — (7) (177) — (184)
Repayment of borrowings — 67 16 — 83
Repayment of lease liabilities — 15 — — 15
Net cash outflow from debt-related derivative financial instruments — — — 15 15
Additions to lease liabilities — (5) (9) — (14)
Disposal of lease liabilities — 1 3 — 4
Acquisitions excluding cash and overdrafts — (73) (43) — (116)
Movement in unamortised loan costs — — (2) — (2)
Net movement in fair value of derivative financial instruments — — — (17) (17)
Reclassification — (615) 615 — —
Currency movements (7) 9 2 — 4
At 30 June 2025 159 (662) (2,139) 3 (2,639)
Note:
1 Excludes bank overdrafts of €9 million (as at 31 December 2024:
€9 million), which are included in cash and cash equivalents (see note 10b).
The Group incurred interest expense of €64 million in relation to bank
overdrafts, loans and lease liabilities (six months ended 30 June 2024:
€52 million), before the capitalisation of interest. Included in this
expense is €20 million (six months ended 30 June 2024: €18 million)
relating to forward exchange rates on derivative contracts. Interest paid on
borrowings was €50 million (six months ended 30 June 2024: €43 million).
11 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); and
• 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 7 and certain
assets acquired or liabilities assumed in business combinations as set out in
note 9.
As at 30 June 2025, the fair value of level 2 derivative financial assets is
€12 million (as at 31 December 2024: €10 million), whereas the fair
value of level 2 derivative financial liabilities is €8 million (as at
31 December 2024: €9 million).
Cash and cash equivalents include money market funds, which are carried at
fair value through profit and loss, with the remaining balance carried at
amortised cost. As at 30 June 2025, the level 1 fair valued money market
funds are valued at €nil (as at 31 December 2024: €50 million).
The Group did not measure any financial assets or financial liabilities at
fair value on a non-recurring basis as at 30 June 2025. There have been no
transfers of assets or liabilities between levels of the fair value hierarchy
during the period.
The fair values of financial instruments that are not traded in an active
market (for example, over-the-counter derivatives) 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 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; and
• other techniques, including discounted cash flow analysis, are used
to determine the fair values of other financial instruments.
Except as detailed below, the directors consider that the carrying values of
financial assets and financial liabilities recorded at amortised cost in the
condensed consolidated financial statements are approximately equal to their
fair values.
Carrying amount Fair value
€ million As at 30 June 2025 As at 31 December 2024 As at 30 June 2025 As at 31 December 2024
Financial liabilities
Borrowings 2,810 2,015 2,814 2,010
12 Other disclosures
The write-down of inventories to net realisable value for the six months ended
30 June 2025 was €36 million (six months ended 30 June 2024: €43
million) while the aggregate reversal of previous write-downs of inventories,
relating to goods that had been written down to net realisable value and were
subsequently sold above their carrying value, was €33 million for the six
months ended 30 June 2025 (six months ended 30 June 2024: €34 million).
Capital expenditure contracted for but not recognised as liabilities is €416
million as at 30 June 2025 (as at 31 December 2024: €372 million).
There have been no significant changes to the nature of the contingent
liabilities as disclosed in note 30 of the Group’s Integrated report and
financial statements 2024.
There have been no significant changes to the level and nature of the
Group’s related party transactions as disclosed in note 32 of the Group’s
Integrated report and financial statements 2024.
13 Events occurring after 30 June 2025
Aside from the interim ordinary dividend declared for the current financial
year (see note 6), there have been no material reportable events since
30 June 2025.
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, unless otherwise stated.
The reporting segment equivalent APMs are measured in a consistent manner.
Certain APMs use trailing 12-month amounts. These amounts refer to the sum or
average (as applicable for trailing 12-month average capital employed and
trailing 12-month average net debt) of the last 12 months.
APM description and purpose Financial statement reference Closest IFRS equivalent measure
Special items
Special items are generally material, non-recurring items that exceed €10 million. The Audit Committee regularly assesses the Note 4 None
monetary 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 Condensed consolidated income statement Operating profit
measure of the Group's cash-generating ability that is comparable from year to year.
Underlying EBITDA margin
Underlying EBITDA expressed as a percentage of Group revenue (segment revenue for operating segments) provides a measure of the None
Group's cash-generating ability relative to revenue.
APM calculation:
€ million, unless otherwise stated Six months ended 30 June 2025 Six months ended 30 June 2024
Underlying EBITDA (see condensed consolidated income statement) 564 565
Group revenue (see condensed consolidated income statement) 3,909 3,739
Underlying EBITDA margin (%) 14.4 15.1
Underlying operating profit
Operating profit before special items provides a measure of the Group's operating performance that is comparable from year to Condensed consolidated income statement Operating profit
year.
Underlying profit before tax
Profit before tax and special items. Underlying profit before tax provides a measure of the Group’s profitability before tax Condensed consolidated income statement Profit before tax
that is comparable from year to year.
Effective tax rate
Underlying tax charge expressed as a percentage of underlying profit before tax. A measure of the Group's tax charge relative to None
its profit before tax expressed on an underlying basis.
APM calculation:
€ million, unless otherwise stated Six months ended 30 June 2025 Six months ended 30 June 2024
Tax charge before special items 61 71
Underlying profit before tax (see condensed consolidated income statement) 272 323
Effective tax rate (%) 22.4 22.0
Underlying earnings (and per share measure)
Net profit after tax before special items that is attributable to shareholders. Underlying earnings (and the related per share Note 5 Profit for the period attributable to shareholders (and per share measure)
measure based on the basic, weighted average number of ordinary shares outstanding) provides a 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 Note 5 Profit for the period attributable to shareholders (and per share measure)
shares outstanding) is mandated under the 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.
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 Note 3 Total equity
employed over the last 12 months adjusted 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 None
trailing 12-month average capital employed. ROCE provides a measure of the efficient and effective use of capital in the
business.
APM calculation:
€ million, unless otherwise stated Six months ended 30 June 2025 Six months ended 30 June 2024 Year ended 31 December 2024
Trailing 12-month underlying operating profit 579 664 606
Trailing 12-month underlying net loss from joint ventures (1) (5) (3)
Trailing 12-month underlying profit from operations and joint ventures 578 659 603
Trailing 12-month average capital employed (see note 3) 6,865 6,088 6,283
ROCE (%) 8.4 10.8 9.6
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 Note 10c None
less cash and cash equivalents, net of 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 None
-generating ability.
APM calculation:
€ million, unless otherwise stated Six months ended 30 June 2025 Six months ended 30 June 2024 Year ended 31 December 2024
Net debt (see note 10c) 2,639 1,603 1,732
Trailing 12-month underlying EBITDA 1,048 1,086 1,049
Net debt to underlying EBITDA (times) 2.5 1.5 1.7
Production statistics
Six months ended 30 June 2025 Six months ended 30 June 2024
Containerboard 000 tonnes 1,302 1,171
Kraft paper 000 tonnes 629 640
Uncoated fine paper 000 tonnes 467 489
Pulp 000 tonnes 1,950 1,906
Internal consumption 000 tonnes 1,593 1,579
Market pulp 000 tonnes 357 327
Corrugated solutions million m² 1,118 935
Paper bags million units 2,961 2,792
Consumer flexibles million m² 939 1,006
Functional paper and films million m² 1,609 1,637
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 the
Disclosure Guidance and Transparency Rules, the UK Market Abuse Regulation or
applicable law or any regulatory body applicable to Mondi, including the JSE
Limited, the FCA 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 24,000
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.
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