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Mondi announces 6% rise in pre-tax profits

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World Cement,

Mondi Group, which supplies paper and plastic-based industrial bags for the packaging of cement, among other industries, has announced a 6% rise in pre-tax profits in 2016. The company made €843 million as earnings rose 3% to €1.37 billion.

“I am pleased to announce another strong performance, building on our track record of steadily improving profitability over the last five years,” said Mondi Group’s CEO, David Hathorn. “We saw good contributions from all out businesses, despite pricing headwinds in a number of key paper grades.”

The company supplies pasted valve bags made from sack kraft paper, as well as plastic-based bags, for the packaging of cement and other powdered building materials.

Sales volumes for sack kraft paper increased in 2016, the company said, “benefitting from good demand, fewer planned maintenance shuts and productivity improvements.” The increased its selling prices by 3 – 4% at the beginning of the year on the back of he strengthening demand, after a 5 – 6% fall in the early part of 2016.

Despite forecasting some inflationary cost pressure, a more challenging trading environment in Europe and emerging market currency volatility, Hathorn remained positive on the outlook for 2017.

Noting the price increases and expected contributions from recent CAPEX projects acquisitions, as well as steady organic growth from in the company’s downstream converting business, Hathorn said the company was “confident of continuing to deliver industry-leading returns.”

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