05 Aug - 7 min read
Results for the six months ended 30 June 2021 (short form announcement)
Results for the six months ended 30 June 2021 (short form announcement) Mondi plc (Incorporated in England and Wales) (Registered number: 6209386) LEI: 213800LOZA69QFDC9N34 LSE share code: MNDI ISIN: GB00B1CRLC47 JSE share code: MNP 5 August 2021 Results for the six months ended 30 June 2021 (short form announcement) Highlights - Strong financial performance, good momentum o Higher sales volumes, higher average selling prices and effective cost control o Underlying EBITDA of €709 million, with margin of 19.5% o Cash generated from operations of €552 million o Balance sheet at 1.5x net debt to underlying EBITDA - Investing through-the-cycle o Completed acquisition of Olmuksan, strengthening our position in the fast growing Turkish corrugated market (€88 million on an implied 100% EV basis) o Good progress on capital investment projects, delivering growth, sustainability benefits and enhanced cost competitiveness (€286 million capital investments in the period) o Approved €125 million upgrade and expansion of Kuopio containerboard mill (Finland) and further investment in corrugated plants to support strong growth in eCommerce - Launched Mondi Action Plan 2030 (MAP2030), our sustainability framework for the next decade - Signed €750 million revolving credit facility aligning financing with MAP2030 and extending debt maturity profile - Interim dividend declared of 20.0 euro cents per share - Well-positioned for growth in packaging markets, with cost-advantaged asset base, strong financial position and unique portfolio of sustainable solutions Financial summary Six months Six months ended ended € million, except for percentages and per share measures 30 June 2021 30 June 2020 Change % Group revenue 3,627 3,452 5% Underlying EBITDA1 709 738 (4)% Underlying operating profit1 497 524 (5)% Operating profit 503 518 (3)% Profit before tax 461 466 (1)% Basic underlying earnings per share1 (euro cents) 70.7 73.0 (3)% Basic earnings per share (euro cents) 71.8 72.0 —% Basic headline earnings per share1 (euro cents) 70.7 71.6 (1)% Interim dividend per share (euro cents) 20.00 19.00 5% Cash generated from operations 552 602 (8)% Net debt1 2,004 2,039 Underlying EBITDA margin1 19.5% 21.4% Return on capital employed (ROCE)1 14.8% 17.1% Note: 1 The Group presents certain measures of financial performance, position or cash flows that are not defined or specified according to International Financial Reporting Standards (IFRS). These measures, referred to as Alternative Performance Measures (APMs), are defined at the end of the full announcement and where relevant, reconciled to IFRS measures in the notes to the condensed consolidated financial statements (see link to the full announcement below). Andrew King, Mondi Group Chief Executive Officer, said: "We are pleased with our first half performance. Volume growth and pricing momentum in our packaging markets has been strong. Encouragingly, we have also seen improving uncoated fine paper markets. We exhibited strong cost control, against a backdrop of rising commodity input costs, whilst keeping a sharp focus on delivering our high-quality product and service offering to our customers. My thanks go to the teams across Mondi for their ongoing commitment and dedication. Sustainable packaging is at the centre of what we do and top of our customers' agendas. With our leading offering in paper and flexible plastic-based packaging, I am confident we are well-positioned to support their goals with innovative solutions that are sustainable by design, based on our principle of paper where possible, plastic when useful. We remained focused on driving organic growth through our capital investment programme. We successfully started up a new 300,000 tonne containerboard line at Ruzomberok (Slovakia) and a repurposed machine in Steti (Czech Republic) which is now dedicated to producing speciality kraft paper for eCommerce and retail shopping bags. Expansionary projects are also underway at a number of our converting packaging operations, enhancing our production capabilities and product offering to further support our customers, particularly in eCommerce. We also approved an expansion and upgrade of our semi-chemical fluting mill in Kuopio (Finland). We are excited by the possibilities offered by our cost- advantaged asset base and we continue to evaluate further development opportunities in our structurally growing packaging markets. We completed the acquisition of Olmuksan, expanding our corrugated offering in the fast growing Turkish market, and welcome the team to the Mondi family. While macroeconomic uncertainties remain, trading is positive. In the second half, we expect to see the full impact of the price increases implemented to date and the continued contribution from our capital investment projects. We also expect the impact of planned maintenance shuts and ongoing input cost pressures, which we aim to mitigate by our relentless focus on cost control. Underpinned by the Group's integrated cost-advantaged asset base, culture of continuous improvement, portfolio of sustainable packaging solutions and the strategic flexibility offered by our strong cash generation and financial position, the Group remains well-placed to deliver sustainably into the future." Dividend The Board aims to offer shareholders long-term ordinary dividend growth within a targeted dividend cover range of two to three times on average over the cycle. An interim dividend of 20.0 euro cents per share has been declared by the directors and will be paid on Thursday 30 September 2021 to those shareholders on the register of Mondi plc on Friday 27 August 2021. Last date to trade shares cum-dividend JSE Limited Tuesday 24 August 2021 London Stock Exchange Wednesday 25 August 2021 Shares commence trading ex-dividend JSE Limited Wednesday 25 August 2021 London Stock Exchange Thursday 26 August 2021 Record date Friday 27 August 2021 Last date for receipt of Dividend Reinvestment Plan (DRIP) elections by Central Securities Depository Participants Thursday 2 September 2021 Last date for DRIP elections to UK Registrar and South African Transfer Secretaries: South African Register Friday 3 September 2021 UK Register Monday 13 September 2021 Payment Date Thursday 30 September 2021 DRIP purchase settlement dates (subject to market conditions and the purchase of shares in the open market): UK Register Monday 4 October 2021 South African Register Wednesday 6 October 2021 Currency conversion dates ZAR/euro Thursday 5 August 2021 Euro/sterling Friday 17 September 2021 Share certificates on Mondi plc's South African register may not be dematerialised or rematerialised between Wednesday 25 August 2021 and Friday 27 August 2021, both dates inclusive, nor may transfers between the UK and South African registers of Mondi plc take place between Wednesday 18 August 2021 and Friday 27 August 2021, both dates inclusive. Information relating to the dividend tax to be withheld from Mondi plc shareholders on the South African branch register will be announced separately, together with the ZAR/euro exchange rate to be applied, on or shortly after Thursday 5 August 2021. The dividend will be paid from distributable reserves. For further information please see the full announcement (link below). Short form announcement This short form announcement is the responsibility of the directors. It is only a summary of the information contained in the full announcement and does not contain full or complete details. Any investment decision should be based on the full announcement accessible from Thursday, 5 August 2021, via the JSE link below and also available on our website at www.mondigroup.com/en/investors/results-and-reports. The full announcement is available at our registered office and our sponsor’s office for inspection, at no charge, during office hours. Copies of the full announcement may also be requested by email: Investor.Relations@mondigroup.com The JSE link is as follows: https://senspdf.jse.co.za/documents/2021/jse/isse/MNP/HY2021.pdf Enquiries Investors/analysts: Clara Valera +44 193 282 6357 Mondi Group Head of Strategy and Investor Relations Media: Suvra Jans +44 193 282 6333 Mondi Senior Media Relations Manager Richard Mountain (FTI consulting) +44 790 968 4466 Conference call dial-in and webcast details Please see below details for the conference call and webcast that will be held at 09:00 (UK) and 10:00 (CET/SA) today. The conference call dial-in numbers are: UK 0800 2796 619 South Africa 0800 014 552 Other +44 2071 928 338 Conference ID 2367067 The webcast will be available via www.mondigroup.com/en/investors/ The presentation will be available to download from the above website around 30 minutes before the webcast commences. Written questions can be submitted via the webcast. If you wish to ask a question verbally, please connect via the dial-in conference call. Should you have any issues on the day with accessing the dial-in conference call facility, please call +44 2071 928 338. For queries regarding access to the webcast, please e-mail firstname.lastname@example.org and you will be contacted as soon as possible. A video recording of the presentation will be available on Mondi’s website during the afternoon of 5 August 2021. Editors’ notes Mondi is a global leader in packaging and paper, contributing to a better world by making innovative packaging and paper solutions that are sustainable by design. Our business is integrated across the value chain – from managing forests and producing pulp, paper and plastic films, to developing and manufacturing effective industrial and consumer packaging solutions. Sustainability is at the centre of our strategy and intrinsic in the way we do business. We lead the industry with our customer- centric approach, EcoSolutions, where we ask the right questions to find the most sustainable solution. In 2020, Mondi had revenues of €6.66 billion and underlying EBITDA of €1.35 billion. Mondi has a premium listing on the London Stock Exchange (MNDI), and a secondary listing on the JSE Limited (MNP). Mondi is a FTSE 100 constituent, and has been included in the FTSE4Good Index Series since 2008 and the FTSE/JSE Responsible Investment Index Series since 2007. Sponsor in South Africa: UBS South Africa Proprietary Limited. Date: 05-08-2021 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.