Mondi expects an increase in profits in its year-end results

GLOBAL packaging and paper producer Mondi has said it expected its profits to increase during the year to end December.

Mondi said on Friday that its underlying earnings before interest, tax, depreciation and amortisation (Ebitda) would be above €1.48 billion (R23.46bn).

“Special item net charges after tax for the year to end December 2018 are expected to be around €92 million, of which €81m were recognised in the first half,” the group said.

Mondi said its expected earnings per share (Eps) would rise between 25 and 29 percent, while headline earnings per share (Heps) for the period would increase between €1.86 and €1.92 from €1.48 last year.

Mondi said underlying Eps, excluding the impact of special items, would increase by between 21 and 25 percent to between €1.67 and €1.73, up from last year’s €1.37. Its basic Heps were expected to increase between 25 and 29 percent to €1.82 and €1.88 from €1.45 last year.

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.

It has a primary listing on the JSE and a premium listing on the London Stock Exchange. Mondi is expected to release its year-end results this month. Last year Mondi reported revenues of €7.10bn.

In the third quarter to end September, the group reported a strong performance, having benefited from higher average selling prices across fibre packaging and uncoated fine paper, good cost containment and contributions from recent acquisitions.

Mondi shares rose 0.94 percent on the JSE on Friday to close at R353.