FTSE 100 paper group Mondi has upgraded profit forecasts for 2015, after a strong performance across all of its packaging divisions.

The group said underlying operating profit for the year to December 31 will be higher than the €767m (£593.7m) recorded in 2014, while earnings per share will rise by a quarter.

Shares in the South Africa-based company were up almost 3pc on the news.

Mondi is involved in all aspects of the paper packaging trade, from managing forests and producing pulp, paper and compound plastics, to developing packaging products for both the industrial and consumer sectors.

 Products include hygienic containers, stand-up pouches, super-strong cement bags, clever retail boxes and office paper. Customers are in industries such as automotive, building and construction, chemicals, food and beverage, home and personal care, medical and pharmaceutical and office and professional printing.

The group said exceptional costs would total €47m for the year, largely due to restructuring charges and settling a legal case related to its 2012 acquisition of consumer packaging company Nordenia.

The company employs around 25,000 people across more than 30 countries. Its key operations are in central Europe, Russia, North America and South Africa. It built its European base by buying state-owned paper mills and packaging factories in ex-Soviet Bloc countries in the 1990s.

In 2014, Mondi made revenues of €6.4bn. It was one of the best performing companies in the FTSE 100 last year, with its share price rising by roughly a quarter in 2015.

 

Source : telegraph.co.uk

Report Abuse