UK's Mondi H1 EBITDA falls on input cost inflation
UK's Mondi H1 EBITDA falls on input cost inflation
Overview
UK packaging and paper producer's H1 revenue rose slightly, but underlying EBITDA declined sharply
Company posted pre-tax loss due to €320 mln in impairment and restructuring charges
Margin pressure from higher input costs and lower selling prices offset by higher volumes
Outlook
Mondi now expects 2026 capital expenditure of around €500 mln, down from €550 mln
Company expects full-year maintenance shutdowns to impact EBITDA by €80 mln, down from €100 mln
Mondi expects higher wood costs in Central and Eastern Europe and volatile energy input costs
Result Drivers
INPUT COST INFLATION - Co said higher wood, energy, raw material and logistics costs, partly due to Middle East conflict, put pressure on margins
LOWER SELLING PRICES - Co said average selling prices remained below prior year levels despite some price increases in H1
PLANT NETWORK OPTIMISATION - Co closed or is closing six converting plants and reduced headcount to improve efficiency and cost base
Company press release: ID:nPRrU2781a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| EUR 3.98 bln |
|
H1 Adjusted EBITDA |
| EUR 379 mln |
|
H1 Pretax Loss |
| EUR 240 mln |
|
H1 ROCE |
| 4.00% |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 8 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the paper packaging peer group is "buy."
Wall Street's median 12-month price target for Mondi PLC is GBp789.00, about 0.1% below its July 29 closing price of GBp789.40
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 17 three months ago
Reuters Recommended Reads
July 29 - Smurfit Westrock downgrades full-year profit guidance on freight costs
July 28 - Clearwater Paper Q2 net loss widens as facility outage weighed on results
July 28 - Greif fiscal Q3 revenue beats estimates on higher prices
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)