Things are looking up for sustainable packaging giant Mondi as its shares jumped by almost 15 per cent in early deals this morning after the company published its results for the six months to June 30.
The London-listed business, which sells a range of cardboard packaging and paper, said that a series of price increases had driven a revenue increase of €3.7bn (£3.1bn) in the six months ending June 30, 2024, up from €3.4bn (£2.8bn) in the second half its previous financial year.
Despite the group’s improved position, Mondi remains behind where it was this time last year when its revenue hit €3.8bn (£3.2bn) and its underlying EBITDA was €680m (£574m).
Andrew King, Mondi CEO, said: “Our underlying EBITDA of €565m in the first six months, although lower than the comparable period last year, reflected an encouraging performance, supported by improving market conditions resulting in stronger order books and higher sales volumes.
“This enabled us to implement a number of price increases across our paper grades. Alongside lower input costs, we delivered a sequential improvement in underlying EBITDA when compared to the second half of 2023.”
However, King also warned that the second half of the year was set to be hit by maintenance work that would drag on results.
“The benefit of the price increases will continue into the second half of the year. The second half is expected to be impacted by higher planned maintenance shuts and a likely forestry fair value loss.”
Shares fell once markets opened but remain marginally in the green.