Mondi (MNDI) H1 2024 earnings summary

Executive summary

• Delivered robust H1 2024 performance with sequential profitability improvement, supported by organic growth investments, stronger volumes, and price increases, especially in flexibles and paper grades.

• Maintained a strong balance sheet and strategic flexibility, enabling continued investment and shareholder returns.

• Significant progress on capital investment projects, with meaningful EBITDA contribution expected from 2025 onwards.

• Paid a €1.60 per share special dividend and completed a share consolidation following the sale of Russian assets.

• Continued focus on self-help initiatives, disciplined capital allocation, and sustainability-driven innovation.

Financial highlights

• Underlying EBITDA for H1 2024 was €565 million, down from €680 million in H1 2023 but up from €521 million in H2 2023; margin was 15.1%.

• Group revenue was €3,739 million, a decrease from €3,881 million in H1 2023, mainly due to lower average selling prices despite higher volumes.

• Basic underlying EPS was 50.5 euro cents (H1 2023: 67.0 euro cents); cash generated from operations was €372 million.

• Net debt at end of June was €1.6 billion, with net debt to EBITDA at 1.5x.

• Interim dividend of 23.33 euro cents per share declared; €978 million returned to shareholders in dividends during the period.

Outlook and guidance

• Sequential improvement expected to continue into H2 2024, with full benefit of recent price increases in paper grades and both packaging businesses.

• Capital expenditure for 2024 expected at the top end of €800–900 million, with organic growth investments on track and on budget.

• Maintenance shutdown EBITDA impact for 2024 unchanged at €100 million, more weighted to H2; planned maintenance shuts in H2 to impact EBITDA by ~€80 million.

• Working capital levels anticipated to normalize by year-end, with some cash inflow expected in H2.

• Full-year effective tax rate expected at 22–23%; net finance costs revised to ~€80 million.