The online shopping boom helped Mondi (MNDI) partially offset the impact of a weak pricing environment and the coronavirus pandemic. The paper and packaging manufacturer has decided that its position is robust enough to return to dividends. It will pay out an extra dividend of 29.75¢ on top of its interim dividend in September, having suspended its 2019 final payment in April in response to the virus outbreak.
Prices have fallen across the board, while demand remains low among various industrial markets. The group does not anticipate a quick recovery in its uncoated fine paper outfit, either. Mondi has also delayed planned maintenance shutdowns into its second half, which will hit underlying cash profits by around €100m (£90m), which is significantly less than the corresponding €150m blow it sustained last year. Strong e-commerce was the highlight of an otherwise glum period for Europe, while Mondi noted a recovery in containerboard exports to China.
Jefferies forecasts full-year 2020 pre-tax profits and earnings per share of €747m and 115¢ respectively, rising to €828m and 127¢ in 2021.
| MONDI (MNDI) | ||||
| ORD PRICE: | 1,449p | MARKET VALUE: | £ 7.04bn | |
| TOUCH: | 1,449-1,450p | 12-MONTH HIGH: | 1,794p | LOW: 1,157p |
| DIVIDEND YIELD: | 1.3% | PE RATIO: | 10 | |
| NET ASSET VALUE: | 842¢* | NET DEBT: | 46% | |
| Half-year to 30 Jun | Turnover (€bn) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
| 2019 | 3.77 | 632 | 95.8 | 27.28 |
| 2020** | 3.45 | 466 | 72.0 | 19.00 |
| % change | -8 | -26 | -25 | -30 |
| Ex-div: | 20 Aug | |||
| Payment: | 29 Sep | |||
| £1=€1.11 *Includes intangible assets of €1bn, or 207¢ a share **Does not include additional dividend of 29.75¢, also ex-div on 20 Aug and paid on 29 Sep | ||||
