Mondi reports 19 percent earnings growth in 2018

Vienna-based paperboard and packaging maker Mondi Group has reported a revenue increase of five percent in 2018 compared to the prior year, and growth in its earnings before interest, tax, appreciation and amortization (EBITDA) of 19 percent year-on-year.

The company’s 2018 revenue figure of €7.48 billion ($8.47 billion) also led to what Mondi calls an “underlying operating” profit of nearly €1.32 billion ($1.49 billion), a boost of 28 percent compared to 2017.

“Mondi delivered a strong performance in 2018,” comments Peter Oswald, the company’s CEO. “We benefited from good demand across our fiber packaging businesses, higher average selling prices and the contribution from our recent acquisitions.”

Adds the CEO, “During the fourth quarter of 2018, we successfully started up the €335 million ($379 million) modernization of our kraft paper facility in Štetí, Czech Republic, and we received the final permits to proceed with our investment in a 300,000-metric-ton kraft top-white machine at our Ružomberok mill in Slovakia, while work to upgrade the pulp mill at the same site is progressing well.”

Looking ahead to 2019 results, the company states, “While there are macro-economic uncertainties, we remain confident in the structural growth drivers in the packaging sectors in which we operate. Pricing is mixed going into 2019, with recent price reductions in containerboard grades and market pulp, and stronger pricing in our kraft paper markets.”

Mondi operates business units in the paperboard and packaging sectors, including containerboard mills in Europe and South Africa. According to its 2017 sustainability report, in that year it used 1.3 million metric tons of recovered fiber as furnish at its containerboard mills.