Mondi's (MNDI) full-year results tells us as much about where it's going as to where it's been - shareholders can take particular encouragement on the former front. A year of middling progress saw the dual-listed packager deliver flat adjusted revenues and a 3 per cent uptick in underlying operating profits, as sales volume growth was countered by lower selling prices.
As ever, currency effects and varying input costs resulted in mixed outcomes across the group's product segments, with a 25 per cent per cent increase in underlying profits at the uncoated fine paper (Europe and international) business offset to an extent by an 8 per cent decline in that locale's packaging paper segment. Overall, there was a 70 basis point improvement in the group operating margin to 14.7 per cent, tempered by a 20 basis point decrease in the return on capital employed to 20.3 per cent.
New chief executive Peter Oswald will take the reins in May just as the group undertakes a multi-million euro upgrade at its Steti mill in the Czech Republic. And, in keeping with industry trends, Mondi expanded its reach and capabilities through 2016 via four acquisitions worth €185m (£156m) and snapped up flexible packaging firm Excelsior Technologies at the beginning of this month in a £33m deal. The message: either scale up or get left behind.
Jefferies has upgraded its respective pre-tax and adjusted EPS estimates to €956m and 149¢ for 2017, against €881m and 138¢ last year.
| MONDI (MNDI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,877p | MARKET VALUE**: | £9.16bn | |
| TOUCH: | 1,876p-1,878p | 12-MONTH HIGH: | 1,877p | LOW: 1,240p |
| DIVIDEND YIELD: | 2.6% | PE RATIO: | 17 | |
| NET ASSET VALUE**: | 699¢* | NET DEBT: | 37% | |
| Year to 31 Dec | Turnover (€bn) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2012 | 5.79 | 368 | 50.1 | 28 |
| 2013 | 6.48 | 499 | 79.8 | 36 |
| 2014 | 6.40 | 619 | 97.4 | 42 |
| 2015 | 6.82 | 796 | 124 | 52 |
| 2016 | 6.66 | 843 | 132 | 57 |
| % change | -2 | +6 | +6 | +10 |
Ex-div: 20 Apr Payment: 18 May £1=€1.184 *Includes intangible assets of €801m, or 165¢ a share **Includes Johannesburg-listed shares | ||||
