MONDI PLC - Update on trading and Russian businesses
(Registered number: 6209386)
LSE share code: MNDI ISIN: GB00B1CRLC47
JSE share code: MNP
This announcement contains inside information.
Update on trading and Russian businesses
Strong delivery in Q1 2022
Underlying EBITDA for the first quarter was €574 million, up 63% compared to the prior year period (Q1 2021: €353 million) and up 41% on a sequential basis (Q4 2021: €406 million). In the current context, the Group believes it is appropriate to report that excluding the Russian operations, underlying EBITDA for the first quarter was approximately €460 million, up around 70% compared to the prior year period.
This performance is testament to the continued dedication of our people, our strong customer relationships and the strength of our integrated business model.
We made progress on our expansionary capital investment programme to capture growth across our packaging businesses in structurally growing markets underpinned by demand for eCommerce and sustainable packaging solutions. As previously outlined, our pipeline currently includes around €1 billion of expansionary projects already approved or under advanced evaluation, which we anticipate will generate mid-teen returns when in full operation. We continue to actively consider further capital investment opportunities.
The sale of the Personal Care Components business, which will simplify our portfolio and deliver greater focus, remains on track for completion in the second half of the year.
At the end of
Update on Russian businesses
Since the announcement on 10 March, having assessed all options for the Group’s interests in
The Russian businesses have, to date, managed supply chain constraints. However, the situation remains fluid, with interruptions to pulp and paper production possible going forward. All significant capital expenditure projects in
Business unit trading overview
Growth in demand for
Engineered Materials’ performance in the quarter was stable, with a good contribution from Functional Paper and Films.
Uncoated Fine Paper markets remain tight in
Input costs, currency movements and maintenance shuts
Input costs were significantly higher in the quarter, both year-on-year and sequentially, with higher energy, resins, transport, wood and chemical costs. Currency movements had a net adverse impact on underlying EBITDA against the comparable prior year period driven by a weaker Russian rouble and Turkish lira.
The impact of scheduled maintenance shuts on underlying EBITDA during the period was around €20 million, with a similar amount expected in the second quarter. Our full year estimate is unchanged at around €110 million.
Summary and outlook
While it is early in the year and significant geopolitical and macroeconomic uncertainties remain, the Group expects to deliver a year of good progress.
Clara Valera+44 193 282 6357 Mondi Group Head of Strategy and Investor Relations Media Kerry Cooper+44 193 282 6323 Mondi Group Head of External Communication Richard Mountain+44 790 968 4466 FTI Consulting
Conference call dial-in details
A conference call will be held tomorrow 5 May at 08:00 (BST) / 09:00 (SAST).
The conference call dial-in numbers are:
UK +44 1 212818004
South Africa +27 110197047 (to join the call press *0)
Other +39 02 802 09 11
Note: No passcode is required to join the conference call. Should you have any issues accessing the facility please call +39 02 802 09 11.
A replay of the call will be available until
Dial-in: +39 02 802 09 87
This trading update provides an overview of our financial performance and financial position for the three months to
Underlying EBITDA is an Alternative Performance Measure that is not defined or specified according to International Financial Reporting Standards. This measure is defined as operating profit before special items, depreciation, amortisation and impairments not recorded as special items.