REG-Mondi Plc: Final Results
Today 07:02
Mondi plc
(Incorporated in England and Wales) ISIN: GB00BMWC6P49
(Registered number: 6209386) LSE share code: MNDI
LEI: 213800LOZA69QFDC9N34 JSE share code: MNP
This announcement contains inside information
19 February 2026
Resilient full year performance; Actions taken to drive value;
Strongly positioned to capture upside
Mondi, a global leader in the production of sustainable packaging and paper,
today announces its results for the 12 months to 31
December 2025.
Andrew King, Mondi Group Chief Executive Officer, commented:
“Our industry continues to work through a prolonged cyclical downturn, yet
we delivered a resilient full year financial performance, achieving underlying
EBITDA of €1,001 million. This reflects the strength of our cost advantaged
and integrated assets, our quality product offering, the commitment of our
people and the targeted strategic actions taken to enhance our competitive
advantage.
“We have intensified our focus on operational excellence and cost
discipline. Bringing together Corrugated Packaging and Uncoated Fine Paper has
streamlined our organisation and accelerated the delivery of operational
synergies. Our cost-out programmes continue to deliver tangible results and
the integration of Schumacher is capturing additional synergies. At the same
time, we are proactively optimising our production footprint, including the
recently announced closures of three plants across our paper bags and
corrugated solutions network.
“We have also taken clear and disciplined decisions on capital allocation.
Following a period of investment into our structurally growing markets, we are
now prioritising maintenance capital expenditure and cost
- optimisation opportunities.
Furthermore, the Board is recommending to bring the dividend back in line with
our cover policy. Combined with our robust financial position and proactive
liquidity management, these actions put us on a strong footing for the year
ahead and position us well for the future.
“Going into 2026, it remains unclear when geopolitical and macroeconomic
conditions will improve. Paper prices are modestly lower, on average, than
those seen in the final quarter of 2025. We are, however, confident in our
ability to navigate these headwinds effectively through disciplined volume
growth as we leverage our recent capacity expansions, strong margin management
and cost optimisation.
"We remain confident in the structural growth drivers that underpin our
packaging businesses and Mondi is strongly positioned to capture the upside as
market conditions improve. Our innovative packaging and paper solutions, cost
advantaged and integrated assets, and disciplined approach to capital
allocation position the Group well to deliver long-term value for our
shareholders.”
Financial summary
€ million, unless otherwise stated Year ended 31 December 2025 Year ended 31 December 2024 Change % Six months ended 31 December 2025 (H2 2025) Six months ended 30 June 2025 (H1 2025)
Group revenue 7,663 7,416 3 3,754 3,909
Underlying EBITDA 1 1,001 1,049 (5) 437 564
Forestry fair value gain 39 7 21 18
Underlying EBITDA excluding forestry fair value gain 1 962 1,042 416 546
Underlying EBITDA margin 1 13.1% 14.1% 11.6% 14.4%
Profit before tax 269 378 (29)
Basic underlying earnings per share (euro cents) 1 56.5 82.7 (32)
Basic earnings per share (euro cents) 37.4 49.1 (24)
Total ordinary dividend per share (euro cents) 28.25 70.00
Cash generated from operations 1,072 970 11
Net debt to underlying EBITDA (times) 1 2.6 1.7
Return on capital employed (ROCE) 1 6.7% 9.6%
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.
Enquiries
Investors/analysts:
Fiona Lawrence
+44 742 587 8683
Mondi Group: Head of Investor Relations
Media:
Kerry Cooper
+44 7881 455 806
Mondi Group: Group Communication Director
Richard Mountain
+44 790 968 4466
FTI Consulting
The person responsible for arranging the release of this announcement on
behalf of Mondi plc is Jenny Hampshire, Company Secretary.
Results presentation details
A webinar will be held today at 08:30 (GMT), 09:30 (CET), 10:30 (SAST).
Event registration link:
https://storm-virtual-uk.zoom.us/webinar/register/WN_mGNmWdnpQVeTZgwz7wLvWQ
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 email
ir@mondigroup.com
Delivering value-accretive growth, sustainably
Fragile consumer and industrial confidence driven by macroeconomic uncertainty
and geopolitical tensions continue to weigh on demand in many of our core
markets. These cyclical pressures have been exacerbated by the current supply
side changes in capacity, notably in recycled containerboard and pulp, which
have seen significant net capacity additions, and in uncoated fine paper,
where industry supply side responses to weaker market demand proved to be
inadequate. In contrast, virgin containerboard and kraft paper - where Mondi
is a market leader - have seen limited supply growth.
Despite the current pressures, we remain confident that the structural growth
drivers for sustainable packaging remain intact, underpinned by the continued
growth in eCommerce and the transition to circular solutions, driven by both
customer preference and regulation. The move to more sustainable packaging
continues and we see ever greater engagement from our customers to develop new
sustainable solutions which they can implement at scale.
Mondi is unique. We have the scale and capability to produce a broad range of
corrugated and flexible packaging solutions that customers truly need. Our
teams combine materials knowledge with operational and commercial excellence
to deliver high-quality products. We help customers transition to recyclable,
paper-based and high-performance alternatives that meet rising sustainability
expectations without compromising protection or efficiency. From virgin
packaging for food safety compliance, to ultra-strong paper bags for
industrial applications and a full range of boxes and bags for eCommerce. Our
innovation capabilities extend to advanced solutions combining paper,
functional barriers and seals for use in FMCG and pet food packaging.
Our offering is underpinned by cost-advantaged pulp and paper mills located
close to raw material sources and a well-positioned, integrated converting
network that optimises logistics and operational efficiency. These factors
create a strong competitive advantage and enable Mondi to cost effectively
deliver innovative, sustainable products of the highest quality and
reliability.
We will continue to grow sustainable packaging across our two complementary
business units leveraging our cost-advantaged, integrated assets and our
leading market positions.
In Corrugated Packaging, we are focused on optimising and developing our
strength in Europe and adjacent geographies, leveraging our upstream paper
platform and recently enlarged converting network. We continue to optimise our
uncoated fine paper assets, tightly manage costs and maintain market
leadership positions.
In Flexible Packaging we pursue segment-differentiated growth. In industrial
end markets we continue to grow globally as a high quality, global leader in
sack kraft paper and industrial bags, with significant integration and scale
advantage. In consumer applications, including speciality kraft paper,
MailerBags and consumer flexibles, we seek to leverage our capabilities and
leading market positions in complex packaging solutions across a range of
substrates focused in Europe and North America.
We remain confident in our strategy and in the long-term structural growth
drivers of our packaging businesses. At the same time, we recognise the
near-term challenges and associated risks across our markets. In response, we
have acted quickly and decisively to support earnings, cashflow and liquidity
- actions that continue to strengthen the Group in the short term and will
drive stronger returns as market conditions improve.
Decisive actions to drive value and enhance competitive advantage
With some of the most productive and lowest cost pulp and paper mills in
Europe, we already benefit from strong cost leadership, further strengthened
by an integrated business model offering significant value chain synergies.
However, we have taken decisive actions to go further, driving cost advantage
and improving the efficiency and competitiveness of the Group.
1. Accelerating operational excellence programmes to drive productivity and
efficiency
Operational excellence is core to Mondi’s competitive strength and
sustainable growth. It defines how we run our business every day, eliminating
productivity losses, improving efficiency and enabling our people to deliver
consistent, high-quality performance across the value chain. As an example,
these actions have resulted in improved productivity across our paper bag
converting plants by 5% in 2025 when compared to 2024.
We are accelerating our approach to operational excellence with new programmes
driving a zero-loss productivity mindset and a disciplined, systematic way of
operating. We are optimising processes, lowering costs and strengthening asset
reliability, which is lifting right-first-time performance, reducing lead
times and deepening customer trust. These gains create a lasting structural
advantage: faster innovation cycles, higher energy and resource efficiency and
production that adapts more flexibly to customer needs.
One year into this multi-year programme, momentum is building. An early
adopter was a production line at a containerboard mill which has already
reduced unscheduled operating downtime and improved total efficiency by 3%
above the historic average. There are further improvements to come across all
our production lines as we adopt this systematic approach to operational
excellence.
2. Delivering efficiency gains through plant network optimisation
Our ongoing commitment to improving productivity, enhancing cost advantage and
ensuring our network remains fit for the future has led us to close 22
converting plants in the last ten years. We follow a disciplined approach to
allocating capital where growth potential is strongest and customer demand
greatest. We prioritise more efficient sites and superior service to our
customers.
We have announced the closure of three further sites in the last three months,
a corrugated solutions plant in Turkiye and paper bag plants in Hungary and
Germany. We will continue to serve our customers out of alternative plants in
our network, which have the required know-how and capacity to ensure a smooth
and seamless transition.
The integration of Schumacher Packaging's Western Europe Packaging Assets
(Schumacher) has further strengthened our corrugated solutions network. It is
enabling greater optimisation across our footprint and unlocking efficiencies
that support our long-term growth. We are confident in the delivery of €32
million cost synergies over the three years from completion, an increase from
the €22 million initially envisaged.
3. Focused fixed cost control
We continue to execute targeted cost-out initiatives with a clear mandate:
drive efficiency, eliminate non-essential activities and strengthen the core
revenue-generating areas of the business.
While we have increased headcount to support capacity expansion projects and
respond to higher customer demand, we have streamlined the overhead structure
and operational headcount where appropriate. Over the past 12 months we have
reduced headcount by approximately 1,000, driven from greater efficiency in
our operations, plant closures, and a 13% reduction in our Group Services
offices. The three recently announced plant closures will further reduce
headcount by approximately 200. We are continually looking to drive additional
efficiencies across our network.
We combined Corrugated Packaging and Uncoated Fine Paper into a single
business unit. This facilitates a more streamlined organisation supporting
faster decision making, cost take-out and delivery of operational synergies
across our pulp and paper mills while retaining our customer focused value
chain orientation.
Driving cash generation and disciplined capital allocation
We intensified our focus on cash generation during 2025 and generated higher
cash from operations of €1,072 million (2024: €970 million) driven by a
strong focus on working capital management.
During the year, we invested €673 million in property,
plant and equipment (2024: €933 million) which included spend on previously
approved and now completed major capacity expansion projects. Capital
expenditure for 2026 is expected to be approximately €550 million, lower
than the €650 million previously guided. This will focus on maintenance and
targeted cost-optimisation opportunities including enhancing energy
efficiency, improving productivity and strengthening the resilience of our
asset base. Importantly, this reduction does not compromise safety, asset
integrity or our ability to capture the upside as markets recover.
We have a robust financial position with no financial covenants and an
investment grade credit rating. Our upcoming bond maturity in April 2026 has
been refinanced by a €550 million Eurobond issued in October 2025, with no
further debt maturity until 2028.
The Board has recommended a total ordinary dividend for 2025 of 28.25 euro
cents per share, reflecting a return to the Group's stated dividend cover
policy of two to three times underlying earnings on average through cycle.
Delivering a differentiated customer value proposition
We see ever greater engagement from customers to develop sustainable solutions
which they can implement at scale.
To support our continued growth in eCommerce we have combined our sales teams
across corrugated and flexible packaging to provide a single point of entry
for customers as their packaging needs evolve.
We are consistently innovating and exchanging know-how across the Group to
deliver the widest range of recyclable, paper-based and high-performance
solutions, as recognised by the nine WorldStar Packaging awards for innovation
we won this year. We are working to offer our customers a circular solution
for 100% of our packaging and paper products by 2030.
Our operational excellence programmes enhance our customer offering by
focusing on right-first-time performance, reduced production lead times and
more flexibility. These programmes will also drive greater energy efficiency
improving our sustainability impact and supporting customers’ Scope 3
commitments.
Strongly positioned to capitalise as markets recover
We are very proud of our teams for completing the build and start-up phase of
the recent major capacity expansion projects on time and on budget. Our focus
is now on delivering full productivity ramp-up, executing our commercial
strategy, driving cash generation and delivering strong returns.
Similarly, the integration of Schumacher and delivery of associated cost
synergies is progressing well, with the focus going forward on leveraging the
expanded geographic footprint and well-invested asset base to drive profitable
growth.
While the current cyclical downturn is proving more protracted than those seen
in the past, we are confident in our ability to navigate this effectively
through disciplined volume growth as we leverage our recent capacity
expansions, strong margin management and cost optimisation.
We remain confident in the structural growth drivers that underpin our
packaging businesses and Mondi is strongly positioned to capture the upside as
market conditions improve. Our innovative packaging and paper solutions,
cost-advantaged and integrated value chain, and disciplined approach to
capital allocation position the Group to deliver long-term value for our
shareholders.
Group performance
Group revenue of €7,663 million was up on the prior year (2024: €7,416
million) driven by higher sales volumes and the revenue
contribution from the Schumacher acquisition, despite sharply lower uncoated
fine paper and pulp selling prices. Underlying EBITDA was lower than the prior
year at €1,001 million (2024: €1,049 million) due to
margin pressure associated with the challenging trading conditions. The
Group's underlying EBITDA margin was 13.1% (2024: 14.1%).
Pricing across all input cost categories was stable in 2025 compared to the
prior year mirroring the muted economic backdrop. Total input costs were
higher year on year as a result of higher volumes both organically and from
acquisitions. In early 2026 input costs are broadly stable and similar to
average 2025 levels.
Total maintenance costs were broadly similar to the prior year. These included
the impact from planned maintenance shuts of which the majority were completed
in the second half of the year. In 2026, we expect a similar phasing of
planned maintenance shuts as in 2025, with a total estimated underlying EBITDA
impact of around €100 million.
Personnel costs were higher year on year driven by the inclusion of
Schumacher's cost base following the acquisition as well as inflationary cost
pressures. Other operating expenses were flat on a comparative basis,
testament to our continued focus on cost control and driving efficiency
improvements.
Currency movements had a net neutral impact on underlying EBITDA compared to
the prior year. The negative impact from a weaker US dollar in the current
year was offset by the non-recurrence of the loss recognised in 2024 from the
devaluation of the Egyptian pound.
Depreciation, amortisation and impairment underlying charges were higher at
€504 million (2024: €443 million) as a result of the
start up of a number of capital investment projects in the year and the
inclusion of the acquired Schumacher plants. We expect these charges in 2026
to be marginally higher, at around €515-525 million, due to annualising
effects.
Net finance costs of €112 million were above the prior year (2024: €70
million) due to a higher average net debt balance and higher interest costs
from refinancing. In 2026, we expect net finance costs of around €125
million due to higher average net debt.
The underlying tax charge for the year was €91 million, giving an effective
tax rate of 24% (2024: €117 million, 22%). In 2026, we expect an effective
tax rate of around 25%.
A special item pre-tax charge of €106 million (2024:
€150 million) was recognised in the year. €18
million of restructuring and closure costs, and €57
million of impairment charges were incurred from optimising our
converting plant network, streamlining overhead costs and impairing converting
assets in emerging Europe, including in Turkiye where economic and
inflationary pressures are impacting profitability. In addition, it includes
€24 million of transaction-related costs and €7 million of additional
costs relating to special items initially reported in 2024.
Basic underlying earnings per share were 56.5 euro cents (2024: 82.7 euro
cents) reflecting the lower underlying earnings compared to 2024. After taking
special items into account, basic earnings per share were 37.4 euro cents
(2024: 49.1 euro cents).
Cash flow
Cash generated from operations was higher than the previous year at €1,072
million (2024: €970 million) driven by strong working capital management as
reflected in a working capital cash inflow in the year of €83 million.
Investment in property, plant and equipment of €673
million in the year (2024: €933 million) was lower than
the previously guided €750-850 million driven by our ongoing focus on cash
management.
The acquisition of Schumacher completed on 31 March 2025 and comprised a total
cash consideration of €506 million and net debt of €103 million.
The total cash outflow in the year from special items totalled €47
million.
Tax paid was €87 million (2024: €120 million) and interest paid was €95
million (2024: €79 million), including derivative interest.
The Group paid ordinary dividends of €305 million.
This, together with dividends paid to non-controlling interests in the year of
€47 million, resulted in dividend payments totalling €352 million in the
year.
Liquidity, treasury and borrowings
Net debt at 31 December 2025 was €2,599
million, with net debt to underlying EBITDA at 2.6 times (31
December 2024: €1,732 million, 1.7 times). The
increase in net debt and related leverage year on year was mainly due to
investment into the business including the acquisition of Schumacher and major
capital investment projects. Our financing agreements do not contain financial
covenants.
Mondi's available liquidity at 31 December 2025 was
€1,292 million, comprising the undrawn Syndicated Revolving Credit Facility
(RCF) of €1,000 million and cash and cash equivalents of €292 million.
The Group has an investment grade credit rating with a BBB (stable outlook)
credit rating from Standard & Poor’s and a Baa1 (negative outlook) credit
rating from Moody’s.
During the year we increased our Syndicated RCF by €250 million from €750
million up to €1 billion, effective from January 2025 and in March 2025
issued a 3.750% €600 million Eurobond with an 8-year tenor, thereby
strengthening liquidity and extending the Group's debt maturity profile. In
addition, the Group issued a 3.375% €550 million Eurobond with a 5-year
tenor in October 2025 in order to refinance the Group's only significant
near-term debt maturity being the Eurobond maturing in April 2026. Following
this issuance, the Group early settled €321 million of the Eurobond maturing
in April 2026. The Group intends to settle the remaining balance of €279
million on maturity using existing facilities. The weighted average maturity
of our committed debt facilities at the end of the year was 4.8 years.
Business unit review
The Group has reorganised its business units during the year and combined the
Uncoated Fine Paper business unit with Corrugated Packaging to form an
enlarged Corrugated Packaging business unit.
Corrugated Packaging
Mondi is a leading European corrugated packaging producer, with a
cost-competitive asset base, integrated production network 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.
As a leading corrugated solutions producer in central and emerging Europe, we
leverage our integrated production network and partner with our customers to
create fully recyclable corrugated boxes.
In addition, we produce a wide range of printing papers at our mills in
central Europe and South Africa where we have regional leadership positions.
We also produce market pulp in South Africa for customers around the world.
€ million and percentage Year ended 31 December 2025 Year ended 31 December 2024 (restated) Change % Six months ended 31 December 2025 (H2 2025) Six months ended 30 June 2025 (H1 2025) (restated)
Segment revenue 3,775 3,519 7 1,882 1,893
Underlying EBITDA 458 526 (13) 174 284
Forestry fair value gain 39 7 21 18
Underlying EBITDA excluding forestry fair value gain 419 519 153 266
Underlying EBITDA margin (%) 12.1% 14.9% 9.2% 15.0%
Capital employed 4,265 3,742
ROCE (%) 4.4% 8.5%
Corrugated Packaging delivered underlying EBITDA of €458
million and margin of 12.1% (2024: €526 million,
14.9%). Containerboard achieved sales volume growth and delivered higher
average selling prices compared to 2024. Corrugated Solutions' performance was
lower year on year with lower margins more than offsetting box volume growth.
Uncoated fine paper and pulp pricing was significantly below the prior year's
averages, impacting the overall business unit's performance. This lower
pricing effect, together with the impact from scheduled maintenance shuts
undertaken predominantly in the second half of the year, resulted in a lower
sequential half-on-half performance for Corrugated Packaging (H2 2025: €174
million, H1 2025: €284 million).
In Containerboard, our sales volumes were up on the prior year. This was
driven by the growing demand from our customers for our broad range of paper
grades with additional volumes fulfilled by our new capacity following major
capital investment projects at our mills in Swiecie (Poland), Duino (Italy)
and Kuopio (Finland). Average containerboard selling prices were higher than
the prior year with achieved price increases in the first half of the year
followed by price reductions in the second half of the year and in early 2026.
Corrugated Solutions achieved 2% organic box volume growth compared to 2024
driven by demand for sustainable packaging solutions for consumer end-use
applications. In addition, the Schumacher acquisition completed on 31 March
2025 with its results included for nine months of the year. This acquisition
further strengthens our customer offering with a broader geographic reach.
Overall, margins were lower than the prior year as a result of labour cost
inflation and higher paper input costs which were not able to be passed
through pricing due to intense competition in key markets.
In Uncoated Fine Paper, and against a backdrop of weaker market demand, the
business delivered broadly stable sales volumes, successfully increasing
market share, testament to its strong customer offering. Average selling
prices were however significantly lower than the prior year as industry supply
side responses to the weaker market demand proved inadequate.
Pulp prices were, on average, significantly lower year on year, with prices
rising modestly in early 2025 but decreasing sharply at the end of the first
half of the year and remaining under pressure during the second half.
The forestry fair value gain was higher at €39 million
in the year (2024: €7 million).
Return on capital employed (ROCE) was lower than the prior year at 4.4% (2024:
8.5%) driven by an increase in capital employed due to the start up of a
number of major capacity expansion projects and the acquisition of Schumacher,
together with the impact of lower earnings in the year.
Flexible Packaging
We are a global producer of flexible packaging, offering our customers a
unique portfolio of solutions across industrial and consumer end-use
applications.
Approximately 50% of our revenue is derived from industrial end-use
applications, where we are the global market leader in sack kraft paper and
paper bag production. Our customer offering is further supported by our strong
integration, scale, security of supply and global reach.
We generate approximately 50% of our revenue from consumer end-use
applications, producing complex consumer packaging solutions across multiple
substrates, with leadership positions in our chosen markets.
€ million and percentage Year ended 31 December 2025 Year ended 31 December 2024 Change % Six months ended 31 December 2025 (H2 2025) Six months ended
30 June 2025 (H1 2025)
Segment revenue 3,941 3,964 (1) 1,897 2,044
Underlying EBITDA 583 558 4 281 302
Underlying EBITDA margin (%) 14.8% 14.1% 14.8% 14.8%
Capital employed 3,622 3,418
ROCE (%) 10.4% 11.5%
Flexible Packaging's underlying EBITDA was higher at €583
million with margin of 14.8% (2024: €558 million,
14.1%) as good cost control and sales volume growth in paper bags mitigated
the impact of lower kraft paper volumes. Consumer Flexibles and Functional
Paper and Films delivered good, resilient performances supported by our focus
on high-margin products. Flexible Packaging's underlying EBITDA was down in
the second half of the year compared to the first half, impacted by scheduled
mill maintenance shuts and a slowdown in demand relative to the strong start
to the year.
In Kraft Paper, we successfully ramped up volumes at our new paper machine at
our Steti mill (Czech Republic). Overall kraft paper sales volumes were lower
compared to the prior year driven by softer market demand and the loss of
volumes from the Stambolijski mill (Bulgaria) that stopped operating in the
second half of 2024.
Paper Bags delivered a good performance with sales volumes up 5% on the prior
year. This was supported by good demand for construction and building material
bags in emerging markets, solid demand for traditional industrial end uses in
Europe, and good growth in eCommerce solutions in Europe and the US.
Average pricing across the kraft paper and paper bag value chain was broadly
similar year on year with price increases in the first half of the year offset
by price reductions in the second half. Kraft paper prices in 2026 are
currently lower than 2025 average prices.
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.
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.
The Group’s most significant risks are long-term in nature. We assess and
update our principal risks throughout the year to
reflect the developments in our strategic
priorities and Board discussions on principal and
emerging risks.
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.
Key changes in the year
The key changes to the Group’s principal risks identified during 2025 are
set out below.
The country risk was derated with an assessed decrease in impact. The derating
reflects the change in geographic capital allocation over recent years. This
is supported by the Group’s recent capital investment projects and
acquisitions in low risk countries, which contributes to lowering the
Group’s country risk profile.
The cost and availability of raw materials risk was derated with a decreased
likelihood due to the improved fibre security outlook. This conclusion follows
a review of current wood market supply and demand, which reflects reduced
demand and supports the expectation that the risk around availability of fibre
has reduced.
In 2025, significant cyber security incidents were reported in the media,
particularly related to large corporates based in the United Kingdom. The
Group continues to focus on cyber security risk, with emphasis on maintaining
effective detective and preventative controls to mitigate this risk to levels
consistent with the Group’s risk appetite. The residual risk rating remains
unchanged however, as an elevated level of focus is maintained for this risk.
We acknowledge that geopolitical uncertainties continue to affect business
confidence and levels of economic activity. The Group continues to embed
geopolitical risk and related effects on production, supply chains and
customers within our principal risks.
Emerging risks
On 31 March 2025, the Group completed the Schumacher acquisition. Since
acquisition, the Group has focused on integrating the business. The risks
related to the acquisition include the integration of a
private company into a public company environment, the scale of the
acquisition, the need to integrate IT systems and controls, and the combining
of different corporate cultures. The Board continues to monitor the
integration and is confident that the integration risks are being well
mitigated, and that continued inclusion as an emerging risk and not as a
principal risk is the correct judgement.
The Group's recent major capacity expansion projects were built on time, on
budget and are operational. Our focus is now on achieving full productivity
ramp-up, executing our commercial strategy, driving cash generation and
delivering returns. The emerging risk concerning the start-up and commercial
ramp-up of major capital projects has evolved in 2025 to focus on the
commercial ramp-up of major capital projects. Commercial ramp-up is planned in
detail from initial project inception and amended for market conditions once
start-up is complete. Post-investment reviews are conducted on
major capital investments to evaluate the project
execution against the plan and identify lessons learnt.
We continue to monitor and mitigate potential risks relating to the commercial
ramp-up of major capital projects.
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 responses.
The Executive Committee and the 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 2024 Integrated Report. The 2025 Integrated Report is planned to be
published in March 2026.
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 robust balance sheet. At 31
December 2025, the Group had a liquidity position
of €1,292 million, comprising €1,000 million of undrawn committed debt
facilities and cash and cash equivalents of €292 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 Board believes that the Group’s financial position,
supported by its investment grade credit ratings from
Moody’s (Baa1, outlook negative) and Standard & Poor’s (BBB, 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 2026-2028 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. During the year, the Group successfully refinanced
the Group’s €600 million Eurobond maturing in April 2026 through issuance
of a new bond, thereby removing the need for any refinancing assumption in the
going concern period. 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.
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 no assumption of refinancing
for any facilities maturing during the assessment period. A decline of 100% of
the planned underlying EBITDA in the period until 30 June 2027, meaning no
EBITDA generation at all, 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 2025.
Audited financial information
The condensed consolidated financial statements and notes 1 to 18 for the year
ended 31 December 2025 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 2025
2025 2024
€ million Notes Underlying Special items (Note 4) Total Underlying Special items (Note 4) Total
Group revenue 3 7,663 — 7,663 7,416 — 7,416
Materials, energy and consumables used (3,876) — (3,876) (3,696) — (3,696)
Variable selling expenses (680) — (680) (645) — (645)
Gross margin 3,107 — 3,107 3,075 — 3,075
Maintenance and other indirect expenses (432) — (432) (425) — (425)
Personnel costs (1,345) (19) (1,364) (1,228) (18) (1,246)
Other net operating expenses (329) (28) (357) (373) (58) (431)
EBITDA 3 1,001 (47) 954 1,049 (76) 973
Depreciation, amortisation and impairments (504) (59) (563) (443) (74) (517)
Operating profit 3 497 (106) 391 606 (150) 456
Net loss from joint ventures (1) — (1) (3) — (3)
Net finance costs (112) — (112) (70) — (70)
Investment income 12 — 12 30 — 30
Foreign currency gains/(losses) 2 — 2 (3) — (3)
Finance costs (126) — (126) (97) — (97)
Net monetary loss arising from hyperinflationary economies (9) — (9) (5) — (5)
Profit before tax 375 (106) 269 528 (150) 378
Tax (charge)/credit 6 (91) 19 (72) (117) 1 (116)
Profit for the year 284 (87) 197 411 (149) 262
Attributable to:
Non-controlling interests 35 (3) 32 44 — 44
Shareholders 249 (84) 165 367 (149) 218
Earnings per share (EPS) attributable to shareholders
euro cents
Basic EPS 7 37.4 49.1
Diluted EPS 7 37.4 49.1
Basic underlying EPS 7 56.5 82.7
Diluted underlying EPS 7 56.5 82.6
Condensed consolidated statement of comprehensive income
for the year ended 31 December 2025
2025 2024
€ million Before tax amount Tax charge Net of tax amount Before tax amount Tax credit Net of tax amount
Profit for the year 197 262
Items that may subsequently be or have been reclassified to the condensed consolidated income statement
Fair value losses arising from cash flow hedges — — — (2) 1 (1)
Exchange differences on translation of non-euro operations (4) — (4) 75 — 75
Items that will not subsequently be reclassified to the condensed consolidated income statement
Remeasurements of retirement benefits plans 8 (2) 6 (2) — (2)
Other comprehensive income/(expense) for the year 4 (2) 2 71 1 72
Other comprehensive income/(expense) attributable to:
Non-controlling interests (5) 11
Shareholders 7 61
Total comprehensive income attributable to:
Non-controlling interests 27 55
Shareholders 172 279
Total comprehensive income for the year 199 334
Condensed consolidated statement of financial position
as at 31 December 2025
€ million Notes 2025 2024
Property, plant and equipment 5,751 5,160
Goodwill 893 767
Intangible assets 110 70
Forestry assets 9 511 503
Investments in joint ventures 10 5
Financial instruments 25 29
Deferred tax assets 22 22
Net retirement benefits asset — 3
Other non-current assets 2 3
Total non-current assets 7,324 6,562
Inventories 1,213 1,194
Trade and other receivables 1,290 1,275
Current tax assets 21 22
Financial instruments 4 10
Cash and cash equivalents 13b 292 278
Total current assets 2,820 2,779
Total assets 10,144 9,341
Short-term borrowings 10 (344) (63)
Trade and other payables (1,366) (1,281)
Current tax liabilities (60) (67)
Provisions (59) (65)
Financial instruments (14) (9)
Total current liabilities (1,843) (1,485)
Medium- and long-term borrowings 10 (2,538) (1,952)
Net retirement benefits liability 11 (151) (161)
Deferred tax liabilities (346) (342)
Non-current tax liabilities (4) —
Provisions (34) (32)
Other non-current liabilities (28) (19)
Total non-current liabilities (3,101) (2,506)
Total liabilities (4,944) (3,991)
Net assets 5,200 5,350
Equity
Share capital 97 97
Own shares (16) (20)
Retained earnings 4,449 4,582
Other reserves 197 198
Total attributable to shareholders 4,727 4,857
Non-controlling interests in equity 473 493
Total equity 5,200 5,350
The Group’s condensed consolidated financial statements, including related
notes 1 to 18, were authorised for issue by the Board on 18 February 2026 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 2025
€ million Equity attributable to shareholders Non-controlling interests Total
equity
At 1 January 2024 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 adjustments 7 — 7
Transactions with shareholders in their capacity as shareholders
Dividends (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
Total comprehensive income for the year: 172 27 199
Profit for the year 165 32 197
Other comprehensive income/(expense) 7 (5) 2
Hyperinflation monetary adjustments 1 — 1
Transactions with shareholders in their capacity as shareholders
Dividends (see note 8) (305) (47) (352)
Purchases of own shares (8) — (8)
Mondi share schemes’ charge 10 — 10
At 31 December 2025 4,727 473 5,200
Equity attributable to shareholders
€ million 2025 2024 At 1 January 2024
Share capital 97 97 97
Own shares (16) (20) (17)
Retained earnings 4,449 4,582 5,434
Cumulative translation adjustment reserve (456) (456) (520)
Post-retirement benefits reserve (56) (59) (53)
Share-based payment reserve 15 19 19
Cash flow hedge reserve — — 1
Merger reserve 667 667 667
Other sundry reserves 27 27 27
Total 4,727 4,857 5,655
Condensed consolidated statement of cash flows
for the year ended 31 December 2025
€ million Notes 2025 2024
Cash flows from operating activities
Cash generated from operations 13a 1,072 970
Dividends received from other investments 1 1
Income tax paid (87) (120)
Net cash generated from operating activities 986 851
Cash flows from investing activities
Investment in property, plant and equipment 3 (673) (933)
Investment in intangible assets (17) (13)
Investment in forestry assets 9 (50) (48)
Proceeds from the disposal of property, plant and equipment 18 17
Acquisition of businesses, net of cash and cash equivalents 12 (496) (6)
Interest received 10 32
Other investing activities 7 15
Net cash used in investing activities (1,201) (936)
Cash flows from financing activities
Proceeds from issue of Eurobond 13c 1,139 496
Repayment of Eurobond 13c (321) (500)
Proceeds from medium- and long-term borrowings 13c 307 215
Repayment of medium- and long-term borrowings 13c (296) (215)
Proceeds from short-term borrowings 13c 11 9
Repayment of short-term borrowings 13c (77) (18)
Repayment of lease liabilities 13c (36) (26)
Interest paid 13c (56) (44)
Dividends paid to shareholders 8 (305) (1,081)
Dividends paid to non-controlling interests (47) (6)
Purchases of own shares (8) (12)
Injection from non-controlling interests — 3
Net cash outflow from debt-related derivative financial instruments 13c (66) (47)
Net cash generated from/(used in) financing activities 245 (1,226)
Net increase/(decrease) in cash and cash equivalents 30 (1,311)
Cash and cash equivalents at beginning of year 269 1,592
Cash movement in the year 13c 30 (1,311)
Effects of changes in foreign exchange rates 13c (8) (12)
Cash and cash equivalents at end of year 13b 291 269
Notes to the condensed consolidated financial statements
for the year ended 31 December 2025
1 Basis of
preparation
These condensed consolidated financial statements as at and for the year ended
31 December 2025 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 2025 or 2024 but is derived from
those accounts. Statutory accounts for 2024 have been delivered to the
Registrar of Companies, and those for 2025 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 2025 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 2025 as were applied in the preparation of the
Group’s annual financial statements for the year ended 31
December 2024, except for the amendments to IAS 12 which became effective
for the financial year beginning on 1 January 2025. The Group did not have to
change its accounting policies or make any retrospective adjustments as a
result of adopting this amendment.
Alternative Performance Measures
The Group presents certain measures of financial performance and position 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. These segments are managed based on the nature of the
products produced by each business and comprise two distinct segments (2024:
three). The segment information also includes APMs as defined at the end of
this document.
With effect from 1 October 2025, the Group reorganised its operating segments
to facilitate a more streamlined organisation supporting faster
decision-making, cost take-out and delivery of operational synergies across
our pulp and paper mills, while retaining its customer-focused value chain
orientation. As part of this reorganisation, the former Uncoated Fine Paper
operating segment has been combined with Corrugated Packaging to form a single
enlarged Corrugated Packaging operating segment. The aggregation is consistent
with the management approach under IFRS 8 and reflects how the Group is
managed internally. Flexible Packaging remains unchanged as a separate
segment. Comparative segment information for prior periods has been restated
to reflect the new operating segment structure. The reorganisation had no
impact on the Group’s overall result.
Year ended 31
December 2025
€ million, unless otherwise stated Corrugated Packaging Flexible Packaging Corporate Intersegment elimination Total
Segment revenue 3,775 3,941 — (53) 7,663
Internal revenue (31) (22) — 53 —
External revenue 3,744 3,919 — — 7,663
Underlying EBITDA 458 583 (40) — 1,001
Depreciation, amortisation and impairments (280) (223) (1) — (504)
Underlying operating profit/(loss) 178 360 (41) — 497
Special items before tax (see note 4) (67) (39) — — (106)
Capital employed 4,265 3,622 (88) — 7,799
Trailing 12-month average capital employed 4,048 3,445 (76) — 7,417
Additions to non-current non-financial assets 961 381 — — 1,342
Investment in property, plant and equipment 325 348 — — 673
Underlying EBITDA margin (%) 12.1 14.8 — — 13.1
Return on capital employed (%) 4.4 10.4 — — 6.7
Average number of employees (thousands) 1 10.2 11.8 0.1 — 22.1
1 Presented on a full-time employee equivalent basis.
Year ended 31
December 2024 (restated)
€ million, unless otherwise stated Corrugated Packaging Flexible Packaging Corporate Intersegment elimination Total
Segment revenue 3,519 3,964 — (67) 7,416
Internal revenue (30) (37) — 67 —
External revenue 3,489 3,927 — — 7,416
Underlying EBITDA 526 558 (35) — 1,049
Depreciation, amortisation and impairments (239) (203) (1) — (443)
Underlying operating profit/(loss) 287 355 (36) — 606
Special items before tax (5) (132) (13) — (150)
Capital employed 3,742 3,418 (78) — 7,082
Trailing 12-month average capital employed 3,358 3,051 (126) — 6,283
Additions to non-current non-financial assets 506 565 — — 1,071
Investment in property, plant and equipment 415 518 — — 933
Underlying EBITDA margin (%) 14.9 14.1 — — 14.1
Return on capital employed (%) 8.5 11.5 — — 9.6
Average number of employees (thousands) 1 9.1 12.0 0.1 — 21.2
1 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 2025 2024 2025 2024
Western Europe
Austria 1,179 1,175 159 166
Germany 810 555 1,121 932
UK 22 3 231 196
Rest of Western Europe 787 721 1,768 1,620
Western Europe total 2,798 2,454 3,279 2,914
Emerging Europe
Czech Republic 760 705 260 264
Poland 1,418 1,347 716 729
Turkiye 410 490 451 533
Rest of emerging Europe 854 919 533 543
Emerging Europe total 3,442 3,461 1,960 2,069
Africa
South Africa 567 667 413 489
Rest of Africa 70 80 343 366
Africa total 637 747 756 855
North America 674 648 888 850
South America 9 7 138 93
Asia and Australia 103 99 642 635
Total Group revenue 7,663 7,416 7,663 7,416
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 2025 2024
Operating special items
Impairment of assets (59) (74)
Restructuring and closure costs:
Personnel costs (19) (18)
Other restructuring and closure costs (4) (40)
Costs relating to the acquisition of Schumacher Packaging (24) (5)
Costs relating to the aborted all-share combination with DS Smith plc — (13)
Total special items before tax (106) (150)
Tax credit (see note 6) 19 1
Total special items (87) (149)
Attributable to:
Non-controlling interests (3) —
Shareholders (84) (149)
In line with the Group’s ongoing commitment to improving productivity,
enhancing its cost advantage and ensuring a future-fit network, the Group has
taken action to optimise its converting plant network and streamline overhead
costs. Actions include the initiation of plant closures in Corrugated
Packaging, where the Group has announced the closure of a corrugated solutions
plant within its Turkish network, and in Flexible Packaging, where the Group
has announced plans to close paper bags plants in Hungary and Germany, with
customers being transitioned to larger, more efficient plants nearby.
Alongside the plant closures, the Group has intensified its focus on cost
discipline and proactively managing workforce by reducing headcount across its
business units and corporate functions. In doing so, the Group naturally
ensures compliance with applicable local legal requirements and, where
required under local law, the Group carries out the appropriate information
and/or consultation procedures with employee representative bodies.
Additionally, the Group has impaired assets in emerging Europe, including in
Turkiye where economic and inflationary pressures are impacting profitability.
This gave rise to €18 million of restructuring and
closure costs, and €57 million of impairment charges.
The total charge has been allocated between the two business units, with €43
million attributable to Corrugated Packaging (thereof
impairment of assets of €29 million) and €32
million to Flexible Packaging (thereof impairment of assets of
€28 million). The Group expects additional costs
associated with the Group’s ongoing restructuring and optimisation measures
to be incurred in 2026.
In addition to the above, further special items were recognised in 2025 in
relation to actions that took place in 2024 as set out below.
– Corrugated Packaging:
– Transaction costs of €24
million were recognised in 2025 in relation to the acquisition of the
Western Europe Packaging Assets of Schumacher Packaging. Total costs were
€29 million, of which €5 million was recognised in the second half of 2024
(see note 12).
– Flexible Packaging:
– A paper bags plant in Maastricht
(Netherlands) was closed in 2024. A release of restructuring and closure
provisions of €1 million was recognised in 2025.
Including the €13 million recognised in 2024, total costs related to the
closure amounted to €12 million.
– A paper bags plant in Pine Bluff (USA)
was closed in 2024, with €5 million of restructuring
and closures costs recognised in 2025, in addition to the €9 million
recognised in 2024, bringing total costs related to the closure to €14
million.
– Following the fire at the Stambolijski
paper mill (Bulgaria) in September 2024, restructuring and closure costs of
€1 million and asset impairments of €2
million were recognised in 2025. This is in addition to the
€37 million of restructuring and closure costs and €73 million of
asset impairments recognised in 2024. In total, costs related to the closure
amounted to €113 million.
The operating special items resulted in a cash outflow from operating
activities of €47 million for the year ended 31
December 2025 (2024: €34 million).
5 Write-down
of inventories to net realisable value
€ million 2025 2024
Within materials, energy and consumables used
Write-down of inventories to net realisable value (61) (69)
Aggregate reversal of previous write-downs of inventories 52 49
6 Taxation
The Group’s effective rate of tax before special items for the year ended 31
December 2025 was 24% (2024: 22%).
€ million 2025 2024
UK corporation tax at 25% (2024: 25%) 2 4
Overseas tax 86 105
Current tax in respect of the prior years (1) (4)
Current tax 87 105
Deferred tax in respect of the current year 20 10
Deferred tax in respect of the prior years (14) (5)
Deferred tax attributable to a change in the rate of domestic income tax (2) 7
Tax charge before special items 91 117
Current tax on special items (3) —
Deferred tax on special items (16) (1)
Tax credit on special items (see note 4) (19) (1)
Tax charge for the year 72 116
Current tax charge 84 105
Deferred tax (credit)/charge (12) 11
As the Group operates in a number of countries, each with different tax
systems, a degree of tax risk is inevitable, as tax laws are complex and
subject to changes in legislation and to differing interpretations.
Consequently, provision has been made for such tax risk exposures within
current tax liabilities of €38 million (2024: €40
million), mainly in relation to transfer pricing risks
arising from cross-border transactions. There is not expected to be any
material change to the tax risk exposures or associated provisions within the
next 12 months.
7 Earnings
per share (EPS)
EPS attributable to shareholders
euro cents 2025 2024
Basic EPS 37.4 49.1
Diluted EPS 37.4 49.1
Basic underlying EPS 56.5 82.7
Diluted underlying EPS 56.5 82.6
Basic headline EPS 48.1 60.8
Diluted headline EPS 48.1 60.8
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 2025 2024
Profit for the year attributable to shareholders 165 218
Special items attributable to shareholders (see note 4) 103 150
Related tax (see note 4) (19) (1)
Underlying earnings 249 367
Net gain on disposal of property, plant and equipment (2) (12)
Insurance reimbursements for property damages (1) (3)
Restructuring and closure costs (see note 4) (23) (58)
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) (24) (5)
Gain on purchase of business before transaction-related costs — (13)
Impairments not included in special items 1 —
Loss arising from sale and leaseback transaction — 3
Related tax 12 4
Headline earnings for the year 212 270
Underlying earnings and headline earnings represent APMs which are defined at
the end of this document.
Weighted average number of shares
million 2025 2024
Basic number of ordinary shares outstanding 440.8 444.0
Effect of dilutive potential ordinary shares — 0.1
Diluted number of ordinary shares outstanding 440.8 444.1
The weighted average number of shares was prospectively adjusted from 13
February 2024 to reflect the share consolidation and special dividend
following the sale of the Group's Russian assets, 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.
8 Dividends
An interim dividend for the year ended 31 December 2025
of 23.33 euro cents per ordinary share was paid on Friday 26
September 2025 to those shareholders on the register
of Mondi plc on Friday 22 August
2025.
A proposed final dividend for the year ended 31 December
2025 of 4.92 euro cents per ordinary share will be paid on Thursday 7
May 2026 to those shareholders on the register of Mondi plc on
Friday 27 March 2026.
The final ordinary dividend proposed has been recommended by the Board and is
subject to shareholder approval at the Annual General Meeting scheduled for
Friday 24 April 2026.
2025 2024
euro cents per share € million euro cents per share € million
Final ordinary dividend paid in respect of the prior year 46.67 202 46.67 209
Special dividend — — 160.00 769
Interim ordinary dividend paid in respect of the current year 23.33 103 23.33 103
Total ordinary and special dividends paid 305 1,081
Final ordinary dividend proposed to shareholders 4.92 22 46.67 206
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 ordinary share.
Dividend timetable
The proposed final dividend for the year ended 31
December 2025 of 4.92 euro cents per share will be paid
in accordance with the following timetable:
Last date to trade shares cum-dividend
JSE Limited Tuesday 24 March 2026
London Stock Exchange Wednesday 25 March 2026
Shares commence trading ex-dividend
JSE Limited Wednesday 25 March 2026
London Stock Exchange Thursday 26 March 2026
Record date Friday 27 March 2026
Last date for receipt of Dividend Reinvestment Plan (DRIP) elections by Central Securities Depository Participants Thursday 2 April 2026
Last date for DRIP elections to UK Registrar and South African Transfer Secretaries
South African Register Tuesday 7 April 2026
UK Register Thursday 16 April 2026
Annual General Meeting Friday 24 April 2026 1
Payment date Thursday 7 May 2026
DRIP purchase settlement date (subject to market conditions and the purchase of shares in the open market)
UK Register Monday 11 May 2026
South African Register Wednesday 13 May 2026
DRIP results announcement Thursday 21 May 2026
Currency conversion date
ZAR/euro Thursday 19 February 2026
Euro/sterling Tuesday 21 April 2026
1 Results of the Annual General Meeting to be held are
expected to be released on or around Friday 24 April 2026.
Share certificates on Mondi plc’s South African register may not be
dematerialised or rematerialised between Wednesday 25
March 2026 and Friday 27 March 2026, both dates inclusive, nor may transfers
between the UK and South African registers of Mondi plc take place between
Wednesday 18 March 2026 and Friday 27 March 2026, 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 19 February 2026.
9 Forestry
assets
€ million 2025 2024
At 1 January 503 519
Investment in forestry assets 50 48
Fair value gains 39 7
Disposal of assets (1) —
Felling costs (85) (92)
Currency movements 5 21
At 31 December 511 503
Mature 392 371
Immature 119 132
The fair value of forestry assets is a level 3 measure in terms of the fair
value measurement hierarchy (see note 16), consistent with prior years. The
fair value of forestry assets is determined using a market based approach.
10
Borrowings
The primary sources of the Group’s liquidity include its €3 billion
Guaranteed Euro Medium Term Note Programme, its €1 billion Syndicated
Revolving Credit Facility (RCF), 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 % 2025 2024
Financing facilities
Syndicated Revolving Credit Facility 1 June 2028 EURIBOR + margin 1,000 750
€600 million Eurobond April 2026 1.625% 279 600
€750 million Eurobond April 2028 2.375% 750 750
€550 million Eurobond May 2031 3.375% 550 —
€500 million Eurobond May 2032 3.750% 500 500
€600 million Eurobond May 2033 3.750% 600 —
Long-Term Facility Agreement December 2026-June 2031 Various 20 13
Total committed facilities 3,699 2,613
Drawn (2,699) (1,863)
Total committed facilities available 1,000 750
1 Increased from €750 million to €1 billion on 2
January 2025.
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 is adjusted according to the Group’s performance
against specified sustainability targets.
In March 2025, the Group issued a €600 million 8-year Eurobond maturing in
May 2033 at a coupon of 3.750% per annum. In October 2025, the Group issued a
€550 million 5-year Eurobond maturing in May 2031 at a coupon of 3.375% per
annum. Both Eurobonds were issued under the Group’s Guaranteed Euro Medium
Term Note Programme, and the proceeds were used for general corporate purposes
and refinancing of existing indebtedness. In October 2025, following a tender
offer, the Group repaid €321 million of the €600 million Eurobond maturing
in April 2026.
Short-term liquidity needs are met by cash and the RCF. As at 31
December 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 negative) and Standard & Poor’s (BBB,
outlook stable).
2025 2024
€ million Current Non-current Total Current Non-current Total
Secured
Lease liabilities 39 145 184 24 104 128
Total secured 39 145 184 24 104 128
Unsecured
Bonds 279 2,384 2,663 — 1,842 1,842
Bank loans and overdrafts 26 9 35 39 6 45
Total unsecured 305 2,393 2,698 39 1,848 1,887
Total borrowings 344 2,538 2,882 63 1,952 2,015
11
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 2025. The net retirement benefits
liability decreased by €10 million, primarily due to changes in assumptions
and exchange rate movements. The net retirement benefits asset decreased by
€3 million following the completion of a buy-out of the Group’s largest UK
pension scheme in 2025. The assets backing the defined benefit scheme
liabilities reflect their market values as at 31 December
2025. Net remeasurement gains arising from changes in assumptions and return
on plan assets, after tax, amounting to €6 million have been recognised in
the condensed consolidated statement of comprehensive income.
12 Business
combinations
To 31 December
2025
On 31 March 2025, the Group completed the acquisition of Schumacher
Packaging’s Western Europe Packaging Assets (Schumacher) for a total cash
consideration of €506 million.
The acquisition complements Mondi’s Corrugated Packaging operations in
Europe by expanding its geographic reach in Western Europe. It provides strong
integration benefits with Mondi's containerboard operations and includes two
state-of-the-art mega-box plants in Germany, securing significant capacity for
Mondi to continue to meet growing demand for sustainable packaging.
Since the date of acquisition, Schumacher has contributed €292
million of revenue and incurred a loss after tax of €29
million, which are included in the Group’s condensed consolidated
income statement. Had the acquisition been completed on 1 January 2025, the
Group’s consolidated revenue and profit after tax for year ended 31
December 2025 (after special items) would have been €7,770
million and €197 million, respectively.
The Group incurred total transaction costs of €29 million, of which €24
million was recognised in 2025 and €5 million in the
second half of 2024. The transaction costs were treated as a special item and
recorded within other net operating expenses in the condensed consolidated
income statement (see note 4).
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 375
Intangible assets 43
Inventories 47
Trade and other receivables 62
Cash and cash equivalents 10
Assets held for sale 1
Total assets 538
Trade and other payables (50)
Income tax liabilities (1)
Deferred tax liabilities (10)
Other provisions (1)
Total liabilities (62)
Short-term borrowings (72)
Medium- and long-term borrowings (41)
Debt assumed (113)
Net assets acquired 363
Goodwill arising on acquisition 129
Purchase price adjustment receivable 14
Cash acquired net of overdrafts (10)
Net cash paid per consolidated statement of cash flows 496
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 voting equity interests in the entities with the exception of a
few entities with immaterial non-controlling interests. The non-controlling
interests for these entities were recognised as the proportion of the fair
values of the assets and liabilities recognised at acquisition.
The fair values of assets acquired and liabilities assumed in business
combinations are level 3 measures in terms of the fair value measurement
hierarchy. The assets were measured at fair value using relevant valuation
methods accepted under IFRS 13, 'Fair Value Measurement', with related
deferred tax adjustments.
Property, plant and equipment were measured using valuation techniques
appropriate to each asset class. Land was valued using the market approach,
which reflects current market prices for comparable properties. Buildings were
assessed using the income approach, based on the present value of expected
future cash flows attributable to these assets. Equipment was measured using
the cost approach, which considers the replacement cost of a similar asset,
adjusted for depreciation, physical deterioration and economic obsolescence.
Management has considered the impact of environmental and climate risks on the
estimated fair values of the acquired property, plant and equipment and
concluded that these factors did not have a material impact.
Intangible assets, primarily customer relationships, were measured using the
multi-period excess earnings method. This approach estimates fair value by
projecting future cash flows attributable to the asset and deducting charges
for contributory assets required to support those cash flows. The valuation
incorporates key assumptions regarding revenue growth, EBITDA margins,
customer attrition rates, discount rates, expected future tax obligations and
contributory asset charges.
The purchase price adjustment receivable of €14 million, which is recognised
in other receivables, relates to the finalisation of the purchase price and
was settled in February 2026. The adjustment is based on the closing accounts
prepared in accordance with the sale and purchase agreement, reflecting the
actual cash, debt and working capital positions as of 31 March 2025.
On this basis, goodwill of €129 million was determined based on the 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, a 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. The total amount of goodwill that is
expected to be deductible for tax purposes is €100 million.
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.
13
Consolidated cash flow analysis
(a)
Reconciliation of profit before tax to cash generated from operations
€ million 2025 2024
Profit before tax 269 378
Depreciation and amortisation 503 443
Impairment of property, plant and equipment (not included in special items) 1 —
Share-based payments 10 9
Net cash flow effect of current and prior year special items 59 116
Net finance costs 112 70
Net monetary loss arising from hyperinflationary economies 9 5
Net loss from joint ventures 1 3
(Decrease)/increase in provisions (6) 13
Decrease in net retirement benefits (6) (8)
Net movement in working capital 83 (108)
Decrease/(increase) in inventories 51 (70)
Increase in operating receivables (55) (140)
Increase in operating payables 87 102
Fair value gains on forestry assets (39) (7)
Felling costs 85 92
Net gain on disposal of property, plant and equipment (2) (12)
Insurance reimbursements for property damages (1) (13)
Other adjustments (6) (11)
Cash generated from operations 1,072 970
(b) Cash and
cash equivalents
€ million 2025 2024
Cash and cash equivalents per condensed consolidated statement of financial position 292 278
Bank overdrafts included in short-term borrowings (1) (9)
Cash and cash equivalents per condensed consolidated statement of cash flows 291 269
The cash and cash equivalents of €292 million (2024: €278 million) include
money market funds of €84 million (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 Current financial asset investments Debt due within 1 year 1 Debt due after 1 year Debt-related derivative financial instruments Total net debt
At 1 January 2024 1,592 1 (559) (1,460) 7 (419)
Cash flow (1,311) — 535 (496) 47 (1,225)
Cash movement in the year (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)
Cash flow 30 — 423 (1,150) 66 (631)
Cash movement in the year 30 — — — — 30
Proceeds from Eurobonds — — — (1,139) — (1,139)
Repayment of Eurobonds — — 321 — — 321
Proceeds from borrowings — — (11) (307) — (318)
Repayment of borrowings — — 77 296 — 373
Repayment of lease liabilities — — 36 — — 36
Net cash outflow from debt-related derivative financial instruments — — — — 66 66
Additions to lease liabilities — — (10) (39) — (49)
Disposal of lease liabilities — — 3 4 — 7
Acquisitions excluding cash and overdrafts (see note 12) — — (72) (41) — (113)
Movement in unamortised loan costs — — — (3) — (3)
Net movement in fair value of derivative financial instruments — — — — (80) (80)
Reclassification — — (642) 642 — —
Currency movements (8) — 9 1 — 2
At 31 December 2025 291 — (343) (2,538) (9) (2,599)
1 €1 million (2024: €9 million) of bank overdrafts
are included in cash and cash equivalents for presentation in the condensed
consolidated statement of cash flows (see note 13b), but are included in
short-term borrowings in the condensed consolidated statement of financial
position.
The Group incurred interest expense of €130 million (2024: €107 million)
in relation to bank overdrafts, loans and lease liabilities. Included in this
expense is €39 million (2024: €35 million) relating to forward exchange
rates on derivative contracts and interest paid on borrowings of €56 million
(2024: €44 million).
14 Capital
commitments
As at 31 December 2025, capital expenditure contracted
for at the end of the financial year but not recognised as liabilities is
€297 million (2024: €372 million).
15
Contingent liabilities
The Group’s contingent liabilities as at 31 December
2025 were €nil (2024: €nil). No acquired contingent liabilities have been
recorded in the Group’s condensed consolidated statement of financial
position for either year presented.
16 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 using level 3 inputs are the Group’s
forestry assets, as detailed in note 9, and certain assets acquired or
liabilities assumed in a business combination, as detailed in note 12.
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 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 2025 2024 2025 2024
Financial liabilities
Borrowings 2,882 2,015 2,868 2,010
17 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. All related party transactions are
conducted on an arm's length basis. These transactions, in total, are not
considered to be significant. Transactions between Mondi plc and its
subsidiaries, as well as transactions between subsidiaries, are eliminated on
consolidation. There have been no significant changes to related parties as
disclosed in note 32 of the Group’s annual financial statements for the year
ended 31 December 2024.
18 Events
occurring after 31
December 2025
Aside from the final ordinary dividend proposed for 2025 (see note 8), there
have been no material reportable events since 31 December
2025.
Production statistics
2025 2024
Containerboard 000 tonnes 2,631 2,345
Kraft paper 000 tonnes 1,257 1,233
Uncoated fine paper 000 tonnes 917 938
Pulp 000 tonnes 3,775 3,725
Internal consumption 000 tonnes 3,118 3,044
Market pulp 000 tonnes 657 681
Corrugated solutions million m 2 2,419 1,899
Paper bags million units 5,903 5,583
Consumer flexibles million m 2 1,768 1,912
Functional paper and films million m 2 2,960 3,067
Exchange rates
Average Closing
Versus euro 2025 2024 2025 2024
South African rand (ZAR) 20.18 19.83 19.44 19.62
Czech koruna (CZK) 24.69 25.12 24.24 25.19
Polish zloty (PLN) 4.24 4.31 4.22 4.28
Pound sterling (GBP) 0.86 0.85 0.87 0.83
Turkish lira (TRY) 1 44.82 35.57 50.48 36.74
US dollar (USD) 1.13 1.08 1.18 1.04
1 The Group has applied hyperinflation accounting for its
subsidiaries in Turkiye.
Alternative Performance Measures
The Group presents certain measures of financial performance and position 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. 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 that exceed €10 million. The Audit Committee regularly assesses the monetary threshold of €10 million on a net Note 4 None
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 operations 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 cash-generating ability of the Group's None
operations relative to revenue.
APM calculation:
€ million, unless otherwise stated 2025 2024
Underlying EBITDA (see condensed consolidated income statement) 1,001 1,049
Group revenue (see condensed consolidated income statement) 7,663 7,416
Underlying EBITDA margin (%) 13.1 14.1
Underlying operating profit
Operating profit before special items provides a measure of operating performance of the Group 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 profitability before tax that is comparable from year to year. Condensed consolidated income statement Profit before tax
Effective tax rate
Underlying tax charge expressed as a percentage of underlying profit before tax. The underlying tax charge represents the Group’s tax charge before special items. None
APM calculation:
€ million, unless otherwise stated 2025 2024
Tax charge before special items (see note 6) 91 117
Underlying profit before tax (see condensed consolidated income statement) 375 528
Effective tax rate (%) 24 22
Underlying earnings (and per share measure)
Net profit after tax before special items arising from the Group's operations that is attributable to shareholders. Underlying earnings (and the related per share Note 7 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 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 divided by total ordinary dividend per share paid and proposed provides a measure of the Group’s earnings relative to ordinary dividend payments. None
APM calculation:
euro cents, unless otherwise stated 2025 2024
Basic underlying EPS (see note 7) 56.5 82.7
Total ordinary dividend per share (see note 8) 28.25 70.00
Dividend cover (times) 2.0 1.2
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.
APM calculation:
€ million, unless otherwise stated 2025 2024
Underlying operating profit (see condensed consolidated income statement) 497 606
Underlying net loss from joint ventures (see condensed consolidated income statement) (1) (3)
Underlying profit from operations and joint ventures 496 603
Trailing 12-month average capital employed (see note 3) 7,417 6,283
ROCE (%) 6.7 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 less cash and cash equivalents, net of Note 13c 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 2025 2024
Net debt (see note 13c) 2,599 1,732
Underlying EBITDA (see condensed consolidated income statement) 1,001 1,049
Net debt to underlying EBITDA (times) 2.6 1.7
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 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 2025, Mondi had revenues of €7.7 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
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