The international paper and packaging company climbed by more than a third to €622m for the 12 month period to the end of December 2011.
It highlighted a slowdown in the second half of the year but added that demand was showing signs of recovery in recent weeks.
“The Group’s focus on performance, low-cost operating model, and robust financial position, enabled Mondi to deliver record results in 2011”, said company chief executive David Hathorn. “This was against a backdrop of a strong trading environment in the first half followed by a more difficult second half as macroeconomic uncertainties weighed on our markets.”
He added that while the outlook in 2012 remained uncertain, green shoots of recovery were beginning to appear.
The paper packaging industry introduced capacity reductions during the H2 downturn as demand fell but the resulting drop in supply has started to push up prices once more.
“Looking ahead, while macroeconomic risks remain, it is encouraging to note that in recent weeks order books have improved and prices have stabilised, with price increases announced in certain grades,” said Hathorn. “This should allow some recovery of price declines experienced over the course of the second half of 2011, although recent strengthening of emerging market currencies is impacting margins. Supply side fundamentals in our core grades remain good following further announcements of capacity closures in the industry.”
Production volumes
Mondi has operations across 31 countries and said containerboard production volumes in it ‘Europe and International arena (all operations outside its South Africa base) had risen 4% to just over 2bn tonnes while Kraft paper had dipped 3% to 955m tonnes.