Mondi makes a packet as clients shun plastic

RISING demand for alternatives to plastic packaging has boosted profits at Mondi, as the company concentrates on offering new environmentally friendly products to its clients.

Chief executive Peter Oswald said Mondi was working on a number of alternatives to traditional plastic packaging, including paper-based products and plastic pouches.

Manufacturers have been scrambling to find ways to reduce their plastic packaging use amid concerns that excessive consumption is threatening the oceans.

“There’s nobody in the industry who is really coming close to doing this,” Mr Oswald said, adding that the changes in consumer and business behaviour were boosting demand. Mondi’s pre-tax profits rose 6.3pc to €490m (£437m) in the first six months of the year, even as it struggled with currency changes and higher costs of raw materials.

Mondi has been battling the negative effects of a weaker US dollar and a weaker Russian rouble alongside the impact of maintenance shutdowns across its plants.

But revenue rose from €3.58bn to €3.72bn in the period, driven by higher selling prices for products. The company said that its fibrebased packaging business, which is made up of packaging paper and fibre packaging, was the main driver to the improved performance. During the six month period Mondi also completed €415m of acquisitions.

Shares rose 7.9pc yesterday to £22.36 after the better than expected results.