JSE-listed paper and packaging products manufacturer Mondi increased group revenue by 3% to €7.6-billion for the year ended December 31, 2025, up from €7.4-billion in 2024.

However, underlying earnings before interest, taxes, depreciation and amortisation (Ebitda) declined by 5% to €1-billion from €1.04-billion the year before. The underlying Ebitda margin also declined to 13.1%, down from 14.1% in the year to end December 2024.

Further, profit before tax for the 2025 financial year declined by 29% to €269-million, down from €378-million in 2024.

Basic earnings a share similarly declined by 24% to 37.4c, down from 49.1c for the 2024 financial year. Basic headline earnings a share declined by 21% to 48.1c, down from 60.8c in the prior financial year.

Mondi had paid an interim dividend for the year of 23.33c per ordinary share in September 2025.

A proposed final dividend for the year of 4.92c per ordinary share will be paid on May 7, 2026.

However, the final ordinary dividend proposed has been recommended by the board, but is subject to shareholder approval at the AGM scheduled for April 24.

Mondi delivered a resilient financial performance for the year while the paper and packaging industry continues to work through a prolonged cyclical downturn, says Mondi Group CEO Andrew King.

“We have intensified our focus on operational excellence and cost discipline. Combining Corrugated Packaging and Uncoated Fine Paper has streamlined our organisation and accelerated the delivery of operational synergies. Our cost-out programmes also continue to deliver tangible results, and the integration of Schumacher is capturing additional synergies,” he says.

Simultaneously, the company is proactively optimising its production footprint, which includes the recently announced closures of three plants across its paper bags and corrugated solutions network, he adds.

“We have 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.”

Mondi's board also recommends bringing the dividend back in line with the company's 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,” says King.

Further, 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, he points out.

However, Mondi remains confident in its ability to navigate these headwinds effectively through disciplined volume growth as it leverages its recent capacity expansions, strong margin management and cost optimisation, he says.

“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.”