Healthy half-year rise in profit

MONDI, the largest producer of industrial bags in Europe and North America, said first-half profit rose 31 percent as volumes and prices increased. Earnings per share excluding one-time items rose to 67.8 euro cents from 51.9c a year earlier, the Johannesburg-based company said yesterday. Sales gained 9.9 percent to 3.46 billion (R48bn). Increased profit was driven by “generally positive selling price and volume developments, coupled with good cost control and the contribution from recently completed capital projects,” chief executive David Hathorn said. Mondi, which also supplies wood pulp and paper products, is spending more than 500 million a year to build, expand and improve operations as it seeks to raise capacity and lower costs. Mondi’s major projects completed last year are all performing ahead of expectations, Hathorn said. Mondi’s shares have risen 68 percent this year in Johannesburg and reached a record high on Wednesday. The company declared an interim dividend of 14.38c a share, 9 percent higher than a year earlier. – Bloomberg