Packaging and paper products manufacturer Mondi's continuing operations delivered a strong performance for the year ended December 31.

Performance from the group’s continuing operations exclude its Russian operations, which have been put up for sale.

The group’s underlying earnings before interest, taxes, depreciation and amortisation (Ebitda) was €1.85-billion, up 60% from the previous year.

Profit before tax was €1.56-billion, up 119% year-on-year.

Basic underlying earnings a share were 78% higher year-on-year at €1.96, while cash generated from operations increased by 29% year-on-year to €1.29-billion.

Mondi has declared a full-year dividend of €0.70 a share – an 8% year-on-year increase.

“Our integrated business model and strong operational performance enabled us to manage inflationary pressures and expand margins through price increases,” CEO Andrew King comments.

“Particularly pleasing is the strong growth we are seeing in our market-leading Flexible Packaging business. Our innovative product offering means we can use paper where possible and plastic when useful to provide customers with a uniquely broad choice of flexible packaging solutions to meet their needs,” he avers.

The group believes its unique platform, cash generation and strong balance sheet positions it to meet growing customer demand for sustainable packaging and invest to strengthen its market positions, in line with the group’s strategy to deliver sustainable value-accretive growth.

INVESTMENT PIPELINE

Mondi says its €1-billion expansionary capital investment pipeline is on track to deliver growth across the group’s packaging businesses.

In Corrugated Packaging, it is investing €125-million in its Kuopio mill, in Finland, to increase Semi-chemical fluting capacity by about 55 000 t, while also enhancing product quality, improving cost competitiveness and strengthening the mill’s environmental performance. The investment will be concluded during the fourth quarter of this year.

Mondi is also investing €95-million to debottleneck kraftliner production at its Świecie mill, in Poland, by 55 000 t, with commissioning set for 2024.

In the group’s Corrugated Solutions converting operations, it is investing €185-million across its central and eastern European plant network to strengthen its market position, support growth in eCommerce and enhance its product and service offering.

In Flexible Packaging, Mondi has approved a €400-million investment in a new 210 000 t/y kraft paper machine at the flagship Štětí mill, in Czech Republic.  Mondi states that the new machine will meet the growing demand for sustainable paper-based flexible packaging and help the group better serve its customers, while also improving productivity and energy efficiency. Start-up is expected in 2025 with full production ramp-up by 2027.

“We are also investing €190-million across our Flexible Packaging converting network,” the group states.

In Paper Bags, Mondi continues to expand the global reach of its business, ramping up production at its Cartagena and new Tangier plants, in Colombia and Morocco, respectively; upgrading
the capabilities in its Mexican plants; and expanding its capacity in paper-based flexible packaging solutions for eCommerce across Europe and the US.

“We are investing €65-million to consolidate our leading position in the European pet food packaging market and plan to invest €50-million to enhance our coating capabilities and meet our customers' growing demand for innovative, sustainable paper-based packaging with the necessary barrier properties,” Mondi points out.

It adds that, at its newly acquired Duino mill, in Italy, it plans to convert the existing paper machine into a high-quality, cost-competitive recycled containerboard machine with capacity of about 420 000 t/y at a cost of €200-million.

“The mill is ideally located to source paper for recycling, supply the Group’s Corrugated Solutions plants in central Europe and Türkiye, as well as to serve the growing local Italian market. The converted machine is expected to start-up in 2025,” it reports.

SUSTAINABILITY

Mondi, meanwhile, says it has also made good progress made on its sustainability roadmap, Mondi Action Plan (MAP) 2030.

The group has set a target to reduce its absolute Scope 1 and 2 greenhouse-gas (GHG) emissions by 46.2% and its Scope 3 GHG emissions by 27.5% by 2030, from a 2019 base year.

“We continue to reduce our absolute Scope 1 and 2 GHG emissions, achieving a 17% reduction in 2022 against our 2019 baseline.

“Reducing our GHG emissions has been a longstanding focus for us. Since 2004, our first baseline year for emission reduction targets, we have reduced our Scope 1 and 2 GHG emissions by three-million tonnes, equating to a 44% reduction.

“The contribution of biomass-based renewable energy to the total fuel consumption of our mills is currently 80%, made possible through consistent capital investment across our mill network, making us more energy efficient and less reliant on fossil fuels,” the group says.

Further, as part of its MAP2030 framework, Mondi will continue to focus on climate resilience, maintaining zero deforestation in its wood supply, sourcing wood responsibly and safeguarding biodiversity and water resources.

“In 2022, 100% of our fibre was responsibly sourced, with 75% Forest Stewardship Council  (FSC) or Programme for the Endorsement of Forest Certification certified and the remainder meeting the FSC Controlled Wood standard.