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Mondi PLC on Thursday announced a surge in profit in 2022 which outperformed against analyst expectations, while cautioning on 2023.
The Weybridge, England-based paper and packaging firm reported a pretax profit of €1.56 billion in 2022, up from €712 million in 2021. Revenue jumped 28% to €8.90 billion from €6.97 billion. Mondi said its report excluded its discontinued Russia operations.
Mondi posted earnings before interest, tax, depreciation and amortisation of €1.85 billion, beating the €1.83 billion expected by analysts at stockbroker Davy by 1.0%. Further, it beat expectations by Jefferies analysts of €1.81 billion by 2.1%.
The company declared a total dividend of 70.0 euro cents, up 7.7% from 65.0 a year ago.
Meanwhile, Mondi said its discontinued Russia business revenue in 2022 was €1.27 billion, up 32% from €961 million in 2021. Pretax profit in Russia grew 32% to €358 million from €271 million.
Mondi said the total assets held for sale regarding its Russian assets were at €1.38 billion. The value of Mondi’s Russia business was €1.76 billion in August. Jefferies analysts estimate the current value at €1.4 billion.
Looking ahead, Mondi said that macroeconomic uncertainties remain uncertain. It noted a decline in input costs amid a softer demand and pricing. The company added that it continues to invest to strengthen its market positions.
Mondi shares fell 7.4% to 1,369.00 pence each in London on Thursday morning, and were down 4.6% to R 306.29 in Johannesburg.
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