Latest news with #Mondi
Yahoo
05-07-2025
- Business
- Yahoo
Can Mondi plc's (LON:MNDI) Weak Financials Pull The Plug On The Stock's Current Momentum On Its Share Price?
Most readers would already be aware that Mondi's (LON:MNDI) stock increased significantly by 15% over the past three months. However, in this article, we decided to focus on its weak fundamentals, as long-term financial performance of a business is what ultimately dictates market outcomes. Particularly, we will be paying attention to Mondi's ROE today. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Mondi is: 4.9% = €262m ÷ €5.4b (Based on the trailing twelve months to December 2024). The 'return' is the income the business earned over the last year. One way to conceptualize this is that for each £1 of shareholders' capital it has, the company made £0.05 in profit. View our latest analysis for Mondi So far, we've learned that ROE is a measure of a company's profitability. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. On the face of it, Mondi's ROE is not much to talk about. Yet, a closer study shows that the company's ROE is similar to the industry average of 5.1%. But then again, Mondi's five year net income shrunk at a rate of 7.6%. Bear in mind, the company does have a slightly low ROE. So that's what might be causing earnings growth to shrink. That being said, we compared Mondi's performance with the industry and were concerned when we found that while the company has shrunk its earnings, the industry has grown its earnings at a rate of 8.2% in the same 5-year period. Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. Doing so will help them establish if the stock's future looks promising or ominous. Is MNDI fairly valued? This infographic on the company's intrinsic value has everything you need to know. Mondi's declining earnings is not surprising given how the company is spending most of its profits in paying dividends, judging by its three-year median payout ratio of 54% (or a retention ratio of 46%). With only a little being reinvested into the business, earnings growth would obviously be low or non-existent. You can see the 3 risks we have identified for Mondi by visiting our risks dashboard for free on our platform here. Additionally, Mondi has paid dividends over a period of at least ten years, which means that the company's management is determined to pay dividends even if it means little to no earnings growth. Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 49%. However, Mondi's ROE is predicted to rise to 12% despite there being no anticipated change in its payout ratio. In total, we would have a hard think before deciding on any investment action concerning Mondi. As a result of its low ROE and lack of much reinvestment into the business, the company has seen a disappointing earnings growth rate. That being so, the latest industry analyst forecasts show that the analysts are expecting to see a huge improvement in the company's earnings growth rate. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Evening Standard
14-05-2025
- Business
- Evening Standard
London stock close lower as miners hit by slumping gold price
The biggest risers on the FTSE 100 were: Entain, up 26.8p to 790.8p; Airtel Africa, up 5.5p to 174.6p; Mondi, up 38p to 1,226.5p; Marks & Spencer, up 9.8p to 355.2p; and Beazley, up 18.5p to 893p.
IOL News
08-05-2025
- Business
- IOL News
Mondi reports increased sales volumes and cost control in the first quarter of 2025
Branded rolls of paper are seen at a Mondi production facility. The group reported stronger order books in its first quarter to end-March 2025 driven by increased demand for it sustainable packaging products. Image: supplied Sustainable packaging and paper group Mondi's share price gained 2.6% on Thursday after it reported higher sales volumes, good cost control, and fewer planned maintenance shuts in the three months to the end of March. The share price traded at R218.22 on the JSE in the afternoon, a price well down from R368.37 that it traded at a year before. The group said in a first quarter to end-March 31 trading update that average selling prices were lower compared to the fourth quarter of 2024. Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) for the first quarter was €290 million, including a forestry fair value gain of €2m (Q4 2024: €261m including a forestry fair value loss of €27m). In Corrugated Packaging and Flexible Packaging, stronger order books drove higher sales volumes. Downstream converting operations posted a solid performance. Following selling price declines towards the end of 2024, average selling prices in the first quarter were lower than in the fourth quarter of 2024. In the last few months, paper price increases had been implemented to largely recover the declines. In Uncoated Fine Paper, market conditions remained muted with lower average selling prices. Profitability was supported by strong cost control. Progress was made with the completion and ramp-up of expansion projects. The new kraft paper machine at Steti (Czech Republic), which commenced operations in December last year, 'is showing excellent results in terms of paper quality and production volumes,' a statement said. The converted paper machine in Duino (Italy) successfully started up in April. Once fully operational, it will be capable of producing 420 000 tons per annum of high-quality recycled containerboard. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕
News24
08-05-2025
- Business
- News24
Mondi lifts as it reports healthy demand, pushes price hikes
For more financial news, go to the News24 Business front page. Shares of paper and packaging giant Mondi lifted on Thursday when it reported that higher sales volumes and strong cost controls helped bump up its first-quarter profits. Underlying earnings before interest, taxation, depreciation and amortisation jumped almost 36% year-on-year to €290 million (almost R6 billion) in the three months to end March, it said, with this profit measure excluding various items to reflect the cash-generating ability of the group. Strong demand also means the group expects price increases to benefit it in the second quarter, and in morning trade on the JSE, Mondi had gained over 3%, giving it a market value of R123 billion. Mondi was spun out of Anglo American in 2007 and has its primary listing in London. It employs more than 24 000 people in more than 30 countries and while it is SA's biggest producer of uncoated fine paper and has mills in Richards Bay, less than a tenth of its sales are local. It said on Thursday that it saw higher sales volumes across its paper grades compared to the fourth quarter of 2024, benefitting its corrugated packaging and flexible packaging division — items like boxes — though average selling prices were lower. In the past few months, paper price increases have been implemented to largely recover the declines, it said. In uncoated fine paper, market conditions remained muted with lower average selling prices, but profitability was supported by strong cost control. The group said it was making progress with its capacity expansion projects, while it also completed the acquisition of the Western Europe packaging assets of Schumacher Packaging at the end of March. This is expected to drive synergies, ramp up sales and provide customers with an enhanced range of products. 'In the first quarter of the year, we have seen stronger order books driven by increased demand for our sustainable packaging products,' CEO Andrew King said in the update. 'This has supported recent price increases, which we expect to come through from the second quarter. 'Towards the end of the first quarter, global trade tensions heightened macroeconomic uncertainty. While the direct impact of announced tariffs on our operations is limited, we remain mindful of the potential second-order impacts that could affect trade flows, consumer confidence and supply chains,' he added.
Yahoo
25-04-2025
- Business
- Yahoo
Mondi's ProVantage containerboard to meet recycled packaging demand
Packaging solutions provider Mondi has confirmed its containerboard range is ready to cater to the growing need for sustainable packaging. The company stated that its ProVantage paper grades are available in both brown and white. The range includes products made from both fully recycled and 100% fresh fibre. Mondi claims that these paper grades provide a better foundation for corrugated packaging, as well as honeycomb structures and fibre drums. Mondi's portfolio supports a range of sectors, including e-commerce, fresh produce, and heavy-duty applications. The grades are specifically engineered to balance strength, sustainability, and print quality. These options include appearance grades, kraft grades, recycled grades, and semi-chem grades. These grades offer moisture resistance and durability, which are essential for long-distance transportation. Mondi's ProVantage SmartKraft White paper grade was introduced in 2021 from Mondi's Ružomberok mill in Slovakia. This new Kraft Top White grade blends both fresh and recycled fibres to provide strength and printability. It is aimed at brands looking to make a significant visual and functional impact. Mondi has also highlighted that its Duino mill will produce 420,000tpa of recycled containerboard when fully operational. This increased capacity will improve Mondi's supply integration and enhance supply chain security for its customers. Mondi aims to help businesses across various industries optimise their production processes and reduce their environmental impact. The company's focus on sustainability, innovation, and expert support continues to drive its success in meeting the increasing demand for sustainable packaging solutions. Mondi containerboard senior value chain and sustainability manager Remy Eecke said: 'As sustainability expectations rise, businesses need packaging that protects their products while reducing environmental impact. 'Our containerboard papers are 100% recyclable and made from 100% sustainably sourced raw materials, giving brands the edge they need in a competitive, eco-conscious marketplace.' Earlier this month, Mondi partnered with Evonik to introduce a recyclable, pre-formed paper bag for storing chemical powders. "Mondi's ProVantage containerboard to meet recycled packaging demand" was originally created and published by Packaging Gateway, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
