Mondi cuts dividend as paper prices fall, CEO remains optimistic

MONDI'S management say they are confident in being able to manage industry headwinds, including falling paper prices, by increasing volumes and better management of margins, CEO Andrew King said Thursday.

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The global sustainable paper and packaging group, with tree plantations and paper, pulp and packaging facilities in KwaZulu-Natal and Mpumulanga, South Afruca, released financial results on Thursday for the year to December 31, that showed that underlying earnings before interest tax depreciation and amortisation of €1,001 million, which was 5% lower than a year before.

"Our industry continues to work through a prolonged cyclical downturn, yet we delivered a resilient full year financial performance," said King. The board suggested dividends be realigned after a period of high payouts, announcing a proposed final dividend of 4.92 euro cents per share, which was well down on the 46.67 euro cents at the same time last year.

The total dividend per share for the full year came to 28.35 euro cents, well down from 70 euro cents in 2024.

"Our team's commitment, with our product offerings and cost-advantaged assets, allowed us to deliver a strong performance," said King.