Full year results for the year ended 31 December 2018
Highlights
- Strong financial performance on all key metrics
. Revenue of €7,481 million, up 5%
. Underlying EBITDA of €1,764 million, up 19%
. Underlying operating profit of €1,318 million, up 28%
. Basic underlying earnings of 189.1 euro cents per share, up 27%
. Profit before tax of €1,105 million, up 25%
. Recommended full year ordinary dividend of 76.0 euro cents per share, up 23% - Robust operational performance and strong cost control across the Group
- Capital investment projects on track and delivering growth
. Successful start-up of the modernisation of Steti (Czech Republic)
. Focused capital investment project pipeline in progress, securing future growth - Good progress integrating acquisitions, total spend €424 million
- Well positioned with sustainable packaging solutions portfolio
- Announced intention to simplify corporate structure
- Delivering against our 2020 Growing Responsibly commitments
Peter Oswald, Mondi Group Chief Executive Officer, said:
"Mondi delivered a strong performance in 2018, with underlying EBITDA up 19% to €1,764 million. We benefited from good demand across our fibre packaging businesses, higher average selling prices and the contribution from our recent acquisitions. I am particularly pleased to report on a robust operating performance, delivering productivity gains and strong cost containment, mitigating the inflationary pressures on our cost base.
We continue to make good progress in delivering value accretive growth and enhancing the ongoing cost competitiveness of our operations through our capital expenditure programme. During the fourth quarter of 2018, we successfully started up the €335 million modernisation of our kraft paper facility in Steti and we received the final permits to proceed with our investment in a 300,000 tonne kraft top white machine at our Ruzomberok mill (Slovakia), while work to upgrade the pulp mill at the same site is progressing well. Expansionary capital expenditure projects at a number of our packaging operations and the integration of acquisitions completed in the year will further enhance our production capabilities and product offering to customers.
In November 2018, we announced a proposal to simplify our dual listed structure into a single holding company structure under Mondi plc, which we believe will streamline cash and dividend flows, enhance our strategic flexibility, increase transparency and remove the complexity associated with the current structure.
Looking ahead, while there are macro-economic uncertainties, we remain confident in the structural growth drivers in the packaging sectors in which we operate. Pricing is mixed going into 2019, with recent price reductions in containerboard grades and market pulp and stronger pricing in our kraft paper markets. During 2019, we are planning longer maintenance and project related shuts, while looking forward to the incremental contribution from recently completed major capital projects and acquisitions.
Mondi is uniquely positioned to develop sustainable packaging solutions. With our robust business model, strong balance sheet, focus on leveraging key industry trends of sustainability, e-commerce and enhancing brand value, and culture of continuously driving performance, we continue to look to the future with confidence."
Source: Mondi Group
