Mondi full year results for the year ended 31 December 2015

• Excellent financial performance
Significant profit improvements across all business units
Underlying operating profit of €957 million, up 25%
Underlying earnings of 133.7 euro cents per share, up 25%
Cash generated from operations of €1,279 million, up 24%
Return on capital employed of 20.5%
• Capital projects delivering growth
Completed major projects delivering to plan, contributing incremental €50 million to underlying operating profit in
Strong capital investment pipeline: €450 million in major projects approved and in progress
• Ongoing portfolio optimisation and refinement
Acquisitions totalling €94 million to enhance product offering in Consumer Packaging
Closure of six operations and sale of a further four operations to optimise cost structures and refine product mix
• Significant progress made against our five-year sustainable development commitments
• Recommended full year dividend of 52.0 euro cents per share, up 24%

David Hathorn, Mondi Group chief executive, said: “2015 was an extremely successful year for Mondi. We made significant progress across a number of key areas and again delivered excellent results. Our focus continues to be on growing the packaging side of our business while at the same time investing appropriately in our uncoated fine paper operations.

It is very pleasing to see the strong contribution from all our business units, driven by generally higher selling prices, volume growth, good cost control and important contributions from recently completed capital projects.

We continue to make good progress in driving growth through our capital investment programme, delivering incremental  operating profit of around €50 million from major capital projects in 2015, with a further €60 million anticipated in 2016.  The Boards recently approved a €310 million investment in a new 300,000 tonne per annum kraft top white machine at our Ružomberok mill in Slovakia, adding to our strong pipeline of major projects approved and in development, now totalling around €450 million. Acquisitions of €94 million during the year further enhance our product offering in the high-growth consumer packaging segment.

Our outlook for the business remains positive. While we are currently seeing some softness in certain of our packaging paper grades, we are also seeing firmer prices in the European uncoated fine paper markets following recent industry capacity rationalisation. In addition, lower energy and related input costs, the generally positive impact of weaker emerging market currencies and the incremental contribution from recently completed major capital projects are expected to benefit the Group’s performance in the near term.

Underpinned by the Group’s robust business model, centred around our high-quality, low-cost asset base, clear strategic focus and culture of continuous improvement, we remain confident of continuing to deliver an industry-leading performance.”
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