Mondi says a rebound in volumes, successful price increases and market share gains boosted its profits by double digits in 2021, but that its return to pre-pandemic levels was threatened by rising energy costs and the situation in Ukraine.
But the group had reasons to be optimistic, having managed to pass on rising costs, including surging energy costs in 2021. Mondi had also gained market share in a trading environment where demand for packaging was beginning to accelerate, amid a rise in e-commerce, with customers also becoming increasingly environmentally conscious.
The effect of planned maintenance and project-related shutdowns on core profit in 2021 was about €165m, from €100m in the prior year, with Mondi expecting this cost to fall to €110m in 2022. Strong growth was also reported in retail end-uses, in particular paper-based shopping and e-commerce as well as food and pet food.
The group’s shares, however, have slumped since Russia’s invasion of Ukraine, which has led to unprecedented sanctions against Europe’s fifth-largest economy.
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Mondi optimistic about market share gains, but Russian threat casts a shadowThe group says it’s yet to feel the full benefits of recent price increases, but is facing uncertainty in Russia which generates a fifth of its profit
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