As a world leader in paper and packaging, Mondi plc contributes towards a better world by producing innovative packaging and paper solutions sustainable by design. As a British multinational packaging and paper group, they have about 26,000 employees and about 100 production sites in over 30 countries and are predominant in Russia, Europe, South Africa, and North America.
Mondi has about 26,000 employees and has over 200 years in papermaking. They achieve annually about 6 million tonnes of paper and market pulp production, managing 2.4 million hectares of forests.
Mondi has its business integrated across the paper and packaging value chain:
- from paper and plastic films
- managing forests and producing pulp
- developing and manufacturing effective consumer and industrial packaging solutions.
They keep sustainability at the centre of how they conduct business, leading with their customer-centric approach, EcoSolutions, and discovering the most sustainable solution.
About Mondi
Mondi has its roots firmly planted in South Africa, where its previous owner, Anglo American plc, built the Merebank Mill in Durban in 1967. In 2007, Mondi separated from Anglo American plc and became a dual-listed company, with Mondi plc listed on the London Stock Exchange and Mondi Limited listed on the Johannesburg Stock Exchange.
Image source – pvl stock.adobe.com
Mondi’s Acquisitions
Mondi increased its holdings in 2000 in Frantschach AG and Neusiedler AG, both Austrian companies, to 710% and 100%, respectively. In the same year they a Polish business, Cofinec.
In 2002, Mondi increased its holdings to 90% in the Syktyvkar Mill located in the Komi Republic.
Mondi increased its holdings in Frantschach AG in 2004 to 100% and 71% in another Polish company, Celuloza Świecie AG.
To extend its consumer packaging business, Mondi acquired Nordenia in 2012.
Mondi Group’s Operations
Mondi Group is structured into the following global divisions:
- Flexible Packaging
- Engineered Materials
- Corrugated Packaging
- Uncoated Fine Paper
In the company’s first-quarter trading results for 2021, the following was announced for each division:
- Flexible Packaging: Significant demand for at-home consumption, sustainable packaging, and e-commerce solutions in Flexible Packaging with resilient construction end-uses is observed.
- Engineered Materials: Performance remained consistent. Capital investment projects and restructuring initiatives continue as planned, and demand for functional papers and films increases.
- Corrugated Packaging: Growth in e-commerce, fast-moving consumer items, and recovery in various industrial applications are all driving demand for corrugated packaging. Several price hikes across its containerboard grades were adopted during the quarter and into the second quarter due to constrained worldwide markets. As a result, corrugated solutions had an excellent performance, significantly increasing volume.
- Uncoated Fine Paper: Sales were down on the previous year’s high comparable period, although they increased sequentially. As a result, the average price of uncoated fine paper was lower. But, after the quarter, they enacted price increases in all of its important markets. Given its extensive product line, strong customer service, geographic location, and cost competitiveness, it remains well-positioned.
Sustainability
Mondi and WWF formed a global cooperation in 2014 to improve environmental stewardship in the packaging and paper industry. Mondi and WWF renewed their collaboration for another three years till 2020 in 2017. In addition, they announced in 2018 that Mondi had joined WWF Climate Savers and committed to reducing particular production-related GHG emissions to 0.25 t CO2e/t output by 2050.
In 2020, Mondi achieved platinum status in the EcoVadis CSR ratings and was recognized for its strong commitment to sustainability. EcoVadis is a global business sustainability rating organization that assesses the performance of companies on international sustainability standards annually. The four main areas they cover are:
- Labour and human rights
- Environment
- Sustainable procurement
- Ethics
The platinum rating is still a new category rating for CSR performance, putting Mondi in the top 1% of its sector for the 5th year in a row. Mondi’s overall score for 2020 is 82%, up from 78% in the previous year’s evaluation, with 90% in the Environment and Labor & Human Rights categories.
Mondi’s decision to establish science-based greenhouse gas (GHG) reduction targets exemplifies the company’s commitment to a low-carbon future. The Group aims to reduce GHG emissions in specific scope 1 and 2 by 34% by 2025 and 72% by 2050. Since 2013, it has invested almost €700 million in boosting energy efficiency across its mills, and it’s well on its path to achieving this goal.
In addition, Mondi sets the norm for responsible forest management in its global activities, managing 254,000 hectares of plantation forest in South Africa and 2.1 million hectares of natural forest in Russia. Its forests are FSC certified, with around 24% reserved for protecting and conserving biodiversity and ecosystem services.
Mondi Annual Financial Report – 2020
- Revenues of €6.66 billion
- Underlying EBITDA of €1.35 billion, with a margin of 20.3%
- A full-year dividend of 60.0 euro cents per share is recommended
- €1,485 million in cash earned from operations
Mondi is well-positioned for growth:
- Assisting its clients’ environmental goals with packaging that is designed to be sustainable, keeping to its policy of using plastic when necessary and paper where possible
- Investing throughout the business cycle with capital investment projects that deliver improved cost competitiveness, growth, and long-term sustainability
Mondi Stock News
Mondi plc (MNDI.L) is listed on the London Stock Exchange, and a secondary listing, Mondi Limited (MNP), is listed on the Johannesburg Stock Exchange. Both got listed simultaneously for the first time on July 3, 2007.
The Mondi plc JSE share price is £1,932.50 as of June 14, 2021. The Mondi Limited JSE share price is R371.51 as of June 14, 2021.
Mondi plc pays dividends bi-annually, with a dividend yield of 4.17%.
Mondi is an FTSE 100 Index constituent, and since 2008, has been included in the FTSE4Good Index Series. Since 2007, Mondi has been in the FTSE/JSE Responsible Investment Index Series.
Mondi Shares – Analysts’ Predictions
Mondi’s stock is valued at around £9.165 million, with a market cap of over £1 billion. The Mondi share price increased by about 39.8% over the last year, even with the past year’s volatility impacting a few sectors. The Mondi share price moved on a relative basis by 13.7% over the past year, and the past six months, by 0.29%.
Analysts who are covering Mondi predict the following:
- 5 Hold recommendations
- 3 Buy recommendations
- 0 Sell recommendations
After analyzing Mondi’s stock profile and the analysts’ predictions, Stockopedia classifies Mondi as a super stock.
