Wrap Text
Full year results for the year ended 31 December 2019
Mondi plc
(Incorporated in England and Wales)
(Registered number: 6209386)
LEI: 213800LOZA69QFDC9N34
LSE share code: MNDI ISIN: GB00B1CRLC47
JSE share code: MNP
27 February 2020
Full year results for the year ended 31 December 2019
Highlights
- Robust financial performance
Underlying EBITDA of €1,658 million, with margin of 22.8%
Operating profit of €1,221 million
Cash generated from operations of €1,635 million
ROCE of 19.8%
Strong balance sheet at 1.3x net debt to 12-month trailing underlying EBITDA
Recommended full year ordinary dividend of 83.0 euro cents per share, up 9%
- Strong cost control across the Group
- Good contribution from capital investments and acquisitions completed in 2018
- Capital investment pipeline to deliver further growth
- Simplification of corporate structure completed
- Uniquely positioned as a manufacturer of paper and flexible plastic packaging to help our customers transition
to more sustainable packaging - paper where possible, plastic when useful
- Delivering against our 2020 Growing Responsibly commitments and updated science-based climate commitment
Financial summary
Year ended Year ended
31 December 31 December
€ million, except for percentages and per share measures 2019 2018 Change %
Group revenue 7,268 7,481 (3)
Underlying EBITDA1 1,658 1,764 (6)
Underlying operating profit1 1,223 1,318 (7)
Operating profit 1,221 1,192 2
Profit before tax 1,103 1,105 —
Per share measures
Basic underlying earnings per share1 (euro cents) 171.1 189.1 (10)
Basic earnings per share (euro cents) 167.6 170.1 (1)
Basic headline earnings per share1 (euro cents) 172.5 184.8 (7)
Total ordinary dividend per share (euro cents) 83.0 76.0 9
Cash generated from operations 1,635 1,654 (1)
Net debt1 2,207 2,220
Underlying EBITDA margin1 22.8 % 23.6 %
Return on capital employed (ROCE)1 19.8 % 23.6 %
Note:
1 The Group presents certain measures of financial performance, position or cash flows that are not defined or specified according to International Financial
Reporting Standards (IFRS). These measures, referred to as Alternative Performance Measures (APMs), are defined at the end of the full announcement and
where relevant, reconciled to IFRS measures in the notes to the condensed consolidated financial statements (see link to the full announcement below).
Andrew King, Mondi Group Chief Executive Officer designate, said:
"Mondi delivered a robust performance in 2019 against a backdrop of challenging trading conditions, with underlying
EBITDA of €1,658 million and ROCE of 19.8%. A solid operational performance, strong cost control and a good
contribution from acquisitions and capital investment projects, partially offset the effects of market pressures in a
number of key pulp and paper grades.
Our capital investment programme to deliver value accretive growth and enhance the ongoing cost competitiveness of
our operations remains on track. Having commissioned the pulp mill rebuild at our Ruzomberok mill (Slovakia) in the
second half of the year, we are making good progress on the related investment in a new 300,000 tonne kraft top white
machine at the same site and previously announced major capital investment projects at our Syktyvkar (Russia) and Steti
(Czech Republic) mills. Smaller expansionary projects underway at a number of our converting packaging operations will
further enhance our production capabilities and product offering to customers.
We completed the Simplification of our corporate structure from dual listed into a single holding company under Mondi
plc in July 2019, simplifying cash and dividend flows, increasing transparency, removing the complexity associated with
the previous structure and enhancing our strategic flexibility.
Offering sustainable packaging solutions has continued to be core to our strategy. With our unique product portfolio and
our EcoSolutions approach, we remain well positioned to support our customers in meeting their sustainability goals
with packaging that is sustainable by design - paper where possible, plastic when useful.
Looking ahead, we remain confident in the structural growth drivers in the packaging sectors in which we operate.
Heightened macro-economic uncertainties are likely to continue to affect markets in the short term and, while we are
seeing indications of stability in pricing in certain segments, we start the year with lower prices across our key paper
grades. Input cost relief, our ongoing profit improvement programmes and customer-centric innovation initiatives, and
the benefits from our capital expenditure pipeline will continue to support our performance.
With our robust business model, centred around our high-quality, cost-advantaged asset base, our culture of
continuously driving performance and the strategic flexibility our strong cash generation and financial position bring, we
continue to look to the future with confidence."
Dividend
The Board aims to offer shareholders long-term ordinary dividend growth within a targeted dividend cover range of two to three
times on average over the business cycle. Given our strong financial position and confidence in the future of the business, the
Board has recommended an increase in the final ordinary dividend to 55.72 euro cents per share (2018: 54.55 euro cents per
share). The final ordinary dividend, together with the interim ordinary dividend of 27.28 euro cents per share, paid on
20 September 2019, amount to a total ordinary dividend for the year of 83.0 euro cents per share, an increase of 9% on the 2018
total ordinary dividend of 76.0 euro cents per share.
The final ordinary dividend is subject to the approval of the shareholders of Mondi plc at the Annual General Meeting scheduled for
7 May 2020 and, if approved, is payable on 14 May 2020 to shareholders on the register on 3 April 2020.
The proposed final ordinary dividend for the year ended 31 December 2019 of 55.72 euro cents per share will be paid in
accordance with the following timetable:
Last date to trade shares cum-dividend
JSE Limited Tuesday 31 March 2020
London Stock Exchange Wednesday 1 April 2020
Shares commence trading ex-dividend
JSE Limited Wednesday 1 April 2020
London Stock Exchange Thursday 2 April 2020
Record date Friday 3 April 2020
Last date for receipt of Dividend Reinvestment Plan (DRIP) elections by Central Securities
Depository Participants Thursday 9 April 2020
Last date for DRIP elections to UK Registrar and South African Transfer Secretaries
South African Register Tuesday 14 April 2020
UK Register Tuesday 21 April 2020
Payment Date Thursday 14 May 2020
DRIP purchase settlement dates (subject to market conditions and the purchase of shares
in the open market)
UK Register Monday 18 May 2020
South African Register Wednesday 20 May 2020
Currency conversion date
ZAR/euro Thursday 27 February 2020
Euro/sterling Tuesday 28 April 2020
Share certificates on Mondi plc’s South African register may not be dematerialised or rematerialised between Wednesday 1 April
2020 and Friday 3 April 2020, both dates inclusive, nor may transfers between the UK and South African registers of Mondi plc
take place between Tuesday 24 March 2020 and Friday 3 April 2020, both dates inclusive.
Information relating to the dividend tax to be withheld from Mondi plc shareholders on the South African branch register will be
announced separately, together with the ZAR/euro exchange rate to be applied, on or shortly after Thursday 27 February 2020.
The dividend will be paid from distributable reserves. For further information please see the full announcement (link below).
Short form announcement
This short form announcement is the responsibility of the directors. It is only a summary of the information contained in the full
announcement and does not contain full or complete details.
Any investment decision should be based on the full announcement accessible from Thursday, 27 February 2020, via the JSE link
below and also available on our website at www.mondigroup.com/en/investors/results-and-reports.
The full announcement is available at our registered office and our sponsor’s office for inspection, at no charge, during office hours.
The full announcement is derived from the Group annual financial statements which have been audited by
PricewaterhouseCoopers LLP. The unmodified audit report is available for inspection at the Group’s registered office.
Copies of the full announcement may also be requested by email: Investor.Relations@mondigroup.com
The JSE link is as follows: https://senspdf.jse.co.za/documents/2020/jse/isse/MNP/FY2019.pdf
Enquiries
Investors/analysts:
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 (FTI consulting) +44 790 968 4466
Conference call dial-in and webcast details
Please see below details of our dial-in conference call and webcast that will be held at 09:00 (UK) and 11:00 (SA) today.
The conference call dial-in numbers are:
UK 0800 3767 922
South Africa 0800 014 553
Other +44 2071 928 000
Conference ID 1049766
The webcast will be available via www.mondigroup.com/FYResults19.
The presentation will be available to download from the above website 30 minutes before the webcast commences. Questions can
be submitted via the dial-in conference call or via the webcast.
Should you have any issues on the day with accessing the dial-in conference call, please call +44 2071 928 000.
For queries regarding access to the webcast, please e-mail group.communication@mondigroup.com and you will be contacted
immediately.
A video recording of the presentation will be available on Mondi’s website during the afternoon of 27 February 2020.
Editors’ notes
Mondi is a global leader in packaging and paper, delighting its customers and consumers with innovative packaging and paper
solutions that are sustainable by design. Our business is fully integrated across the packaging and paper value chain - from
managing forests and producing pulp, paper and plastic films, to developing and manufacturing effective industrial and consumer
packaging solutions. Sustainability is embedded in everything we do. In 2019, Mondi had revenues of €7.27 billion and underlying
EBITDA of €1.66 billion.
Mondi has a premium listing on the London Stock Exchange (MNDI), and a secondary listing on the JSE Limited (MNP). Mondi is a
FTSE 100 constituent, and has been included in the FTSE4Good Index Series since 2008 and the FTSE/JSE Responsible
Investment Index Series since 2007.
Sponsor in South Africa: UBS South Africa Proprietary Limited.
Date: 27-02-2020 09:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
