Try our mobile app
Mondi plc (JSE:MNP) News - Full year results for the year ended 31 December 2021
Mondi plc
(Incorporated in England and Wales)
(Registered number: 6209386)
LEI: 213800LOZA69QFDC9N34
LSE share code: MNDI ISIN: GB00B1CRLC47
JSE share code: MNP
3 March 2022
Full year results for the year ended 31 December 2021
Highlights
• Strong financial performance
– Underlying EBITDA of €1,503 million, up €150 million year-on-year (11%), with second half up 29%
– Profit before tax of €983 million, up 28%
– Basic underlying earnings per share of 154.0 euro cents, up 19%
– ROCE up at 16.9%
– Continued good cash generation and strong balance sheet of 1.2x net debt to underlying EBITDA
– Recommended full year dividend of 65.0 euro cents per share, up 8%
• Good progress on all elements of our sustainability roadmap, Mondi Action Plan 2030 (MAP2030)
• Successful execution and delivery of key investments
• Strong pipeline of capital investment projects to further capture growth in our packaging markets, building on
our leading market positions and long track record of disciplined capital allocation, including €1 billion of
expansionary projects approved or under advanced evaluation
• Accelerated climate plans - committed to transition to Net-Zero by 2050, in line with a 1.5°C scenario
• Agreed sale of Personal Care Components business in February 2022 to deliver greater focus
• Well-positioned for the future, with unique portfolio of leading sustainable packaging solutions, cost-advantaged
asset base and strong financial position
Financial summary1
Year ended Year ended
31 December 31 December Change
€ million, except for percentages and per share measures 2021 2020 %
Group revenue 7,723 6,663 16
Underlying EBITDA1 1,503 1,353 11
Underlying operating profit1 1,064 925 15
Operating profit 1,071 868 23
Profit before tax 983 770 28
Per share measures
Basic underlying earnings per share1 (euro cents) 154.0 129.3 19
Basic earnings per share (euro cents) 155.9 120.0 30
Basic headline earnings per share1 (euro cents) 155.3 123.9 25
Total dividend per share (euro cents) 65.0 60.0 8
Cash generated from operations 1,339 1,485 (10)
Net debt1 1,763 1,791
Underlying EBITDA margin1 19.5% 20.3%
Return on capital employed (ROCE)1 16.9% 15.2%
Notes:
1 The Group presents certain measures of financial performance, position or cash flows that are not defined or specified according to International Financial
Reporting Standards (IFRS). These measures, referred to as Alternative Performance Measures (APMs), are defined at the end of the full announcement and
where relevant, reconciled to IFRS measures in the notes to the condensed consolidated financial statements (see link to the full announcement below).
Andrew King, Mondi Group Chief Executive Officer, said:
"Mondi delivered strongly in 2021 and we see good opportunity to accelerate growth in sustainable packaging.
Underlying EBITDA of €1,503 million was up 11% and ROCE up at 16.9%. We grew our packaging businesses and saw a
recovery in uncoated fine paper markets. Our vertical integration, the agility of our operations and collaboration with our
customers ensured we met surging demand at a time when supply chains were under pressure around the world. We
implemented price increases across all our businesses and, against a backdrop of rising commodity input costs, we
exhibited good cost control. Our focus on safety and protecting the wellbeing of our people remains our priority.
All this cannot be achieved without the dedication, stamina and ongoing commitment of our people. My sincere thanks
go to all of my colleagues.
I am particularly proud of how we continue to lead the way in sustainability. We have accelerated our climate plans by
committing to transition to Net-Zero by 2050 in line with a 1.5°C scenario, and made strong progress on all elements of
MAP2030, our sustainability roadmap for the next 10 years, which we launched in early 2021.
Sustainable packaging continues to be a key priority for our customers and wider society. With our unique product
portfolio, technical know-how, expertise in understanding the best material choices and leading innovation capabilities,
we are supporting our customers to achieve their environmental goals with circular driven solutions that are sustainable
by design.
Our capital investments to generate value accretive growth, enhance our cost competitiveness and drive sustainability
benefits continue to deliver. We successfully started up investments in key pulp and paper mills providing incremental
total capacity of around 350,000 tonnes when in full operation. Projects are also underway at a number of our converting
operations enhancing our production capabilities and product offering to further support our customers.
We continue to explore opportunities to accelerate growth across our packaging businesses supporting our customers
and strengthening our leading market positions in structurally growing markets, underpinned by demand for eCommerce
and sustainable packaging solutions. We have an ambitious expansionary capital investment programme to further
capture this growth. In this context, our pipeline currently includes around €1 billion of expansionary projects already
approved or under advanced evaluation, which we anticipate will generate mid-teen returns when in full operation. We
continue to actively consider further capital investments for growth in the packaging markets where we operate.
I am pleased we agreed the sale of our Personal Care Components business in February 2022. By simplifying our
portfolio, the transaction will enable us to focus on our core packaging and paper businesses and enhance our ability to
pursue our strategic priority to grow in sustainable packaging.
Looking forward, we expect to make progress in the year. There are significant geopolitical and macro-economic
uncertainties and we anticipate continued inflationary pressures on our cost base. However, we also expect to realise the
full benefit of the price increases implemented in 2021 and early 2022, shorter planned maintenance shuts and the
contribution from our capital investment programme.
Underpinned by the Group's integrated cost-advantaged asset base, high-performance culture, portfolio of sustainable
packaging solutions and the strategic flexibility offered by our strong cash generation and financial position, the Group
remains well-placed to deliver sustainably into the future."
Update on Ukraine / Russia
The humanitarian crisis unfolding in Ukraine is of great concern. Our thoughts are with all those impacted by these tragic events,
including some of Mondi’s employees.
We have significant operations in Russia, representing around 12% of the Group's revenue by location of production in 2021,
including our high-margin, cost-competitive, integrated pulp, packaging paper and uncoated fine paper mill located in Syktyvkar
(Komi Republic). Over the last three years our Russian operations have generated around 20% of the Group’s underlying
EBITDA. Our businesses primarily serve the domestic market and have continued to operate through this time of heightened
geopolitical tension. We are actively monitoring this rapidly evolving situation, the international response and the implications for
the Group.
Dividend
The Board aims to offer shareholders long-term ordinary dividend growth within a targeted dividend cover range of two to three
times on average over the cycle.
Given our strong financial position and confidence in the future of the business, the Board has recommended an increase in the
final 2021 dividend to 45.00 euro cents per share. The final dividend, together with the interim dividend, amount to a total dividend
for the year of 65.00 euro cents per share, an increase of 8% on the 2020 total dividend.
The final dividend is subject to the approval of the shareholders of Mondi plc at the Annual General Meeting scheduled for 5 May
2022 and, if approved, is payable on 16 May 2022 to shareholders on the register on 8 April 2022.
The proposed final dividend for the year ended 31 December 2021 of 45.00 euro cents per share will be paid in accordance with
the following timetable:
Last date to trade shares cum-dividend
JSE Limited Tuesday 5 April 2022
London Stock Exchange Wednesday 6 April 2022
Shares commence trading ex-dividend
JSE Limited Wednesday 6 April 2022
London Stock Exchange Thursday 7 April 2022
Record date Friday 8 April 2022
Last date for receipt of Dividend Reinvestment Plan (DRIP) elections by Central Securities
Depository Participants Thursday 14 April 2022
Last date for DRIP elections to UK Registrar and South African Transfer Secretaries
South African Register Tuesday 19 April 2022
UK Register Tuesday 26 April 2022
Payment Date Monday 16 May 2022
DRIP purchase settlement dates (subject to market conditions and the purchase of
shares in the open market)
UK Register Wednesday 18 May 2022
South African Register Friday 20 May 2022
Currency conversion date
ZAR/euro Thursday 3 March 2022
Euro/sterling Tuesday 3 May 2022
Share certificates on Mondi plc’s South African register may not be dematerialised or rematerialised between Wednesday 6 April
2022 and Friday 8 April 2022, both dates inclusive, nor may transfers between the UK and South African registers of Mondi plc
take place between Wednesday 30 March 2022 and Friday 8 April 2022, both dates inclusive.
Information relating to the dividend tax to be withheld from Mondi plc shareholders on the South African branch register will be
announced separately, together with the ZAR/euro exchange rate to be applied, on or shortly after Thursday 3 March 2022.
The dividend will be paid from distributable reserves. For further information please see the full announcement (link below).
Short form announcement
This short form announcement is the responsibility of the directors. It is only a summary of the information contained in the full
announcement and does not contain full or complete details.
Any investment decision should be based on the full announcement accessible from Thursday 3 March 2022 via the JSE link
below and also available on our website at www.mondigroup.com/en/investors/results-and-reports.
The full announcement is available at our registered office and our sponsor’s office for inspection, at no charge, during office
hours. The full announcement is derived from the Group annual financial statements which have been audited by
PricewaterhouseCoopers LLP. The unmodified audit report is available for inspection at the Group’s registered office.
Copies of the full announcement may also be requested by email: Investor.Relations@mondigroup.com
The JSE link is as follows: https://senspdf.jse.co.za/documents/2022/jse/isse/MNP/FY2021.pdf
Enquiries
Investors/analysts:
Clara Valera +44 193 282 6357
Mondi Group Head of Strategy and Investor Relations
Media:
Kerry Cooper +44 788 145 5806
Mondi Group Head of External Communication
Richard Mountain (FTI Consulting) +44 790 968 4466
Webcast and conference call details
Please see below details of our webcast and dial-in conference call which will be held at 09:00 (UK) and 11:00 (SA) today.
Dial-in numbers are:
UK 0800 279 6619
South Africa 0800 014 552
Other +44 2071 928338
Conference ID 6106528
A webcast will be available via https://www.mondigroup.com/en/investors/
A presentation will be available to download from the above website 30 minutes before the webcast commences. Questions can
be submitted via the dial-in conference call or via the webcast facility. If you wish to ask a question verbally, please connect via the
dial-in conference call.
Should you have any issues on the day with accessing the dial-in conference call, please call +44 2071 928338.
For queries regarding access to the webcast, please e-mail group.communication@mondigroup.com and you will be contacted as
soon as possible.
A recording of the presentation will be available on Mondi’s website during the afternoon of 3 March 2022.
Editors’ notes
Mondi is a global leader in packaging and paper, contributing to a better world by making innovative packaging and paper
solutions that are sustainable by design. Our business is integrated across the value chain – from managing forests and producing
pulp, paper and plastic films, to developing and manufacturing effective industrial and consumer packaging solutions.
Sustainability is at the centre of our strategy and intrinsic in the way we do business. We lead the industry with our customer-
centric approach, EcoSolutions, where we ask the right questions to find the most sustainable solution. In 2021, Mondi had
revenues of €7.7 billion and underlying EBITDA of €1.5 billion.
Mondi has a premium listing on the London Stock Exchange (MNDI), and a secondary listing on the JSE Limited (MNP). Mondi is
a FTSE 100 constituent, and has been included in the FTSE4Good Index Series since 2008 and the FTSE/JSE Responsible
Investment Index Series since 2007.
Sponsor in South Africa: Merrill Lynch South Africa Proprietary Limited t/a BofA Securities.
Date: 03-03-2022 09:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
