Mondi constrained by maintenance issues

Given the constraints on profitability, a 6 per cent fall in underlying operating profits to €497m (£449m) actually represents a reasonable outcome for Mondi (MNDI) at the half-year mark. Sales improved on the back of increased global demand, and the paper and packaging group maintained the gross margin at 43.6 per cent despite higher raw material costs. But it also had to contend with increased maintenance shutdowns at its mills, which shaved €40m off profits, along with a significantly lower forestry fair value gain, down to €20m from €48m a year earlier.