Mar 2, 2008

Mondi profits up despite cost pressures


Mondi Packaging has reported growth across all sectors in 2007, despite pressure from increases in raw material prices.

The division’s sales increased by 13.4% to €3.6bn (£2.7bn) for the year to 31 December 2007, driven by growth across the corrugated, bags and flexibles sectors.

EBITDA grew 22% to €503m due to an improved trading environment and €81m of cost savings, which helped offset increased input costs; external wood and recycled paper costs rose by an average of 20% and 50% respectively.

Mondi Packaging South Africa reported sales growth of 16.4% to €419m, while EBITDA grew by 15.2% to €53m for the period, thanks largely to an increase in local consumption and a good agricultural season.

Overall, the Mondi Group increased pre-tax profit by 71% to €382m, on sales up 9% at €6.3bn.

Chief executive David Hathorn said the results reflected "improved performances across all business areas", as well as increased pricing, focus on operational efficiency and benefits from restructuring.

Mondi, which demerged from mining group Anglo American in July 2007, has operations across 35 countries and employs around 35,000 people.
Source: packagingnews

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