Mondi (MNDI) H2 2024 earnings summary

Executive summary

• Delivered resilient performance in 2024 despite soft demand, weak pricing, and challenging trading conditions, with results in line with expectations and stable profitability excluding one-off effects.

• Five major projects started up, shifting focus to operational and commercial ramp-up.

• Completed Hinton Pulp Mill acquisition in Canada and agreed to acquire Schumacher Packaging's Western European assets.

• Maintained strong cash generation and balance sheet, prioritizing shareholder returns through disciplined capital allocation and over €1 billion returned via dividends.

• Maintained strong leadership positions in structurally growing markets, supported by innovative, sustainable solutions and a well-invested asset base.

Financial highlights

• Underlying EBITDA for 2024 was €1,049 million, down from €1,201 million in 2023, reflecting price pressures partially offset by volume growth and cost control.

• Net debt at year-end was €1.7 billion, with leverage at 1.7x.

• Basic underlying EPS decreased to 82.7 cents from 107.8 cents year-over-year.

• Cash generated from operations was €970 million, down from €1,312 million in 2023.

• Full year dividend held flat at €0.70 per share.

• Costs were €254 million lower year-over-year, mainly due to lower wood, energy, and chemical costs.

• Significant reduction in forestry fair value gain (€7 million in 2024 vs. €128 million in 2023).

• One-off €32 million currency loss from Egyptian pound devaluation.

• ROCE fell to 9.6% from 12.8% year-over-year.

Outlook and guidance

• Capital expenditure for 2025 expected at €750–850 million, including final payments for major projects and boiler replacements.

• Depreciation and amortization expected at €450–475 million; effective tax rate around 23%; net finance costs about €90 million.

• Input costs expected to remain broadly stable in 2025.

• Guidance excludes Schumacher acquisition effects, expected to complete in H1 2025.

• Mid-cycle project contribution guidance remains €100 million, but 2025 expected between €50–100 million depending on market conditions.

• Containerboard and kraft paper price increases announced for 2025; major capacity expansions and acquisitions expected to support future growth.