Wrap Text
Half-yearly results for the six months ended 30 June 2019 (short form announcement)
Mondi plc
(Incorporated in England and Wales)
(Registered number: 6209386)
LEI: 213800LOZA69QFDC9N34
LSE share code: MNDI ISIN: GB00B1CRLC47
JSE share code: MNP
1 August 2019
Half-yearly results for the six months ended 30 June 2019 (short form
announcement)
Highlights
• Strong financial performance
• Underlying EBITDA of €894 million, up 5%, with margin of 23.7%
• Profit before tax of €632 million, up 29%
• Basic underlying earnings of 96.2 euro cents per share, up 8%
• Return on capital employed 23.2%
• Interim dividend declared of 27.28 euro cents per share
• Good contribution from capital investments and acquisitions completed in 2018
• Capital investment programme on track to deliver incremental growth
• Simplification of corporate structure completed end of July 2019
Well positioned with innovative and sustainable packaging solutions portfolio
Financial Summary
Six months Six months
ended ended
€ million, except for percentages and per share measures 30 June 2019 30 June 2018 Change %
Group revenue 3,771 3,727 1%
Underlying EBITDA1 894 852 5%
Underlying operating profit1 679 630 8%
Operating profit 679 530 28%
Profit before tax 632 490 29%
Per share measures
Basic underlying earnings per share1 (euro cents) 96.2 89.2 8%
Basic earnings per share (euro cents) 95.8 72.5 32%
Basic headline earnings per share (euro cents) 95.6 85.1 12%
Interim dividend per share (euro cents) 27.28 21.45 27%
Cash generated from operations 737 722 2%
Net debt1 2,358 2,450
Underlying EBITDA margin1 23.7% 22.9%
Group return on capital employed (ROCE)1 23.2 % 21.3 %
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 combined and consolidated financial statements (see link to the full announcement below).
Peter Oswald, Mondi Group Chief Executive Officer, said:
“Mondi delivered a strong performance in the first half of 2019 against a backdrop of increasingly challenging trading
conditions, with underlying EBITDA of €894 million, up 5% on the prior year comparable period. Higher average selling
prices, the contribution from capital investments and acquisitions, and a higher forestry fair value gain more than offset
the impact of planned maintenance shuts, lower volumes in certain segments and higher costs. Our initiatives to drive
sustainable performance and mitigate inflationary pressures on our cost base continue to deliver strongly.
Our capital investment programme to deliver value accretive growth and enhance the ongoing cost competitiveness of
our operations remains on track. The €335 million modernisation of our kraft paper facility in Steti (Czech Republic),
which started up in the fourth quarter of 2018, contributed to the strong performance in the period. We are also making
good progress on our previously announced major capital investment projects at our Ruzomberok (Slovakia), Syktyvkar
(Russia) and Steti mills and the smaller expansionary projects at a number of our packaging operations.
At the end of July 2019, we completed the Simplification of our corporate structure from a dual listed structure into a
single holding company structure under Mondi plc. We believe this will simplify cash and dividend flows, increase
transparency, remove the complexity associated with the previous structure and enhance strategic flexibility.
As a leading producer of both paper and plastic based packaging, we are in a unique position to support our customers’
sustainability goals with packaging that is sustainable by design - paper where possible, plastic when useful.
Going into the second half of 2019, ongoing macro-economic uncertainties continue to impact on the trading
environment. Demand is generally softer across the markets in which we operate, while prices for key paper grades are
currently below those of the first half. Furthermore, we expect a significantly lower forestry fair value gain in the second
half. Our relentless focus on continuous improvement is expected to lessen the impact of these pressures.
Underpinned by the Group's robust business model, centred around our high-quality, cost-advantaged asset base, our
portfolio of sustainable packaging solutions, clear strategic focus and culture of continuous improvement, we remain
confident of continuing to deliver a strong and industry-leading performance."
Dividend
The Board’s aim is to offer shareholders long-term dividend growth within a targeted dividend cover range of two to three times
underlying earnings over the business cycle.
An interim ordinary dividend of 27.28 euro cents per share has been declared by the directors and will be paid in accordance with
the following timetable:
Last date to trade shares cum-dividend
JSE Limited Tuesday 13 August 2019
London Stock Exchange Wednesday 14 August 2019
Shares commence trading ex-dividend
JSE Limited Wednesday 14 August 2019
London Stock Exchange Thursday 15 August 2019
Record date Friday 16 August 2019
Last date for receipt of Dividend Reinvestment Plan (DRIP) elections by Central Securities
Depository Participants Thursday 22 August 2019
Last date for DRIP elections to UK Registrar and South African Transfer Secretaries:
South African Register Friday 23 August 2019
UK Register Friday 30 August 2019
Payment Date Friday 20 September 2019
DRIP purchase settlement dates (subject to market conditions and the purchase of shares
in the open market):
UK Register Tuesday 24 September 2019
South African Register Thursday 26 September 2019
Currency conversion dates
ZAR/euro Thursday 1 August 2019
Euro/sterling Wednesday 4 September 2019
Share certificates on Mondi plc's South African register may not be dematerialised or rematerialised between Wednesday
14 August 2019 and Friday 16 August 2019, both dates inclusive, nor may transfers between the UK and South African registers of
Mondi plc take place between Wednesday 7 August 2019 and Friday 16 August 2019, 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 1 August 2019.
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, 1 August 2019, 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.
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/2019/jse/isse/MNP/HY2019.pdf
Contact details
Mondi
Andrew King +44 193 282 6321
Sara Sizer +43 664 244 9994
Clara Valera +44 193 282 6357
FTI Consulting
Richard Mountain +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 10:00 (SA) today.
The conference call dial-in numbers are:
UK 0844 571 8892
South Africa 010 500 7996
Other +44 2071 928000
Conference ID 6593949
The webcast will be available via www.mondigroup.com/HYResults19
The presentation will be available to download from the above website an hour 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 928000.
Should you have any issues on the day with accessing 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 1 August 2019.
Editors’ notes
Mondi is a global leader in packaging and paper, delighting its customers and consumers with innovative and sustainable
packaging and paper solutions. Mondi 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 Mondi does. In 2018, Mondi had revenues of €7.48 billion and underlying EBITDA of
€1.76 billion.
Mondi has a premium listing on the London Stock Exchange (MNDI), and a secondary listing on the JSE Limited (MNP), quoted in
rand. 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: 01/08/2019 08:00:00
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