Mondi Group has reported half years results for the six months ended 30 June 2013.Fnandcial highligts include:
-Underlying operating profit of €366 million, up 35%
-Underlying earnings of 49.4 euro cents per share, up 60%
-Cash generated from operations of €431 million, up 21%
-Interim dividend of 9.55 euro cents per share, up 7%
-ROCE of 14.8%, well in excess of through-the-cycle hurdle rate of 13%
David Hathorn , Mondi Group chief executive, said:
“A strong operating performance and benefits derived from our strategic acquisitions completed towards the end of the previous year have enabled Mondi to deliver record financial results despite what remains a challenging economic backdrop.
The strong profitability and relentless focus on performance is reflected in a return on capital employed of 14.8%, which remains well above our through-the-cycle hurdle rate of 13%.
A focus over the past six months has been on integrating and optimising the significant acquisitions made towards the end of 2012 and executing the major expansion projects initiated over the pasteighteen months. I am pleased to report that we continue to make good progress in this regard. The Group’s major expansion projects are progressing according to plan and remain within budget. Some of the synergies identified at the time of the acquisitions have already been achieved, and we remain on track to meet the previously announced synergy targets. Just as important, we have made good progress in aligning organisational culture, which sets the platform for the future success of the combined business.
Looking forward, new industry capacity in the uncoated fine paper segment, coupled with prevailing demand softness in Europe, may impact the supply/demand balance in the short term. Furthermore, the second half will be impacted by the Group’s regular annual mill maintenance programmes.
However, with the momentum from the strong first half performance and the expected continuation a good pricing environment in the packaging grades, management remains confident of delivering in line with its expectations.
