Mondi plc Reports Resilient FY2025 Performance; Accelerates Cost Actions and Optimises Capital Allocation

📊 FY2025 Financial Highlights

Mondi delivered a resilient performance despite prolonged cyclical downturn pressures across its core markets.

• Group revenue: €7,663 million (+3% YoY)

• Underlying EBITDA: €1,001 million (–5% YoY)

• Underlying EBITDA margin: 13.1% (2024: 14.1%)

• Profit before tax: €269 million (–29% YoY)

• Basic underlying EPS: 56.5 euro cents (–32% YoY)

• Cash generated from operations: €1,072 million (+11% YoY)

• Net debt: €2,599 million

• Net debt / underlying EBITDA: 2.6x (2024: 1.7x)

• ROCE: 6.7% (2024: 9.6%)

Revenue growth was supported by higher sales volumes and the contribution from the Schumacher acquisition, offset by lower pulp and uncoated fine paper prices.

🏭 Operational & Strategic Actions

1️⃣ Plant Closures & Network Optimisation

Mondi announced the closure of:

• One corrugated solutions plant in Türkiye

• Paper bag plants in Hungary and Germany

These actions form part of an ongoing footprint optimisation strategy to enhance cost competitiveness and operational efficiency. Over the past 10 years, Mondi has closed 22 converting plants.

2️⃣ Workforce Reduction

• Approximately 1,000 headcount reductions over the past 12 months

• Recently announced plant closures will reduce headcount by a further ~200 employees

• 13% reduction in Group Services offices

These actions aim to streamline overhead structures and improve productivity.

3️⃣ Operational Excellence Programme

Mondi accelerated multi-year productivity initiatives focused on:

• Zero-loss productivity mindset

• Improved asset reliability

• Reduced downtime

• Efficiency gains across converting and paper mills

Productivity improvements in paper bag converting plants reached 5% year-over-year.

💰 Capital Allocation & Cash Flow

Capital Expenditure

• 2025 CAPEX: €673 million (down from €933 million in 2024)

• 2026 CAPEX guidance: ~€550 million (lower than previously guided €650 million)

• Focus shifting toward maintenance and cost-optimisation investments

Major expansion projects completed on time and on budget.

Acquisition Update

• Completed acquisition of Schumacher Packaging’s Western Europe Packaging Assets on 31 March 2025

• Total cash consideration: €506 million

• Expected cost synergies increased to €32 million over three years (from €22 million initially)

📉 Special Items & Restructuring

• Special item pre-tax charge: €106 million

  • €57 million impairment charges

  • €18 million restructuring and closure costs

  • €24 million Schumacher transaction-related costs

Further restructuring-related costs expected in 2026.

🏦 Liquidity & Debt

• Available liquidity: €1,292 million

• €1 billion undrawn revolving credit facility

• No financial covenants

• Refinanced April 2026 bond via:

  • €600 million 8-year Eurobond (3.750%)

  • €550 million 5-year Eurobond (3.375%)

Investment grade ratings maintained (BBB / Baa1).

💵 Dividend

• Total ordinary dividend for 2025: 28.25 euro cents per share

• Final proposed dividend: 4.92 euro cents per share

• Dividend policy reset to 2–3x underlying earnings cover

(2024 included a large special dividend following Russian asset sale.)

📦 Business Unit Performance

Corrugated Packaging

• Revenue: €3,775 million (+7%)

• Underlying EBITDA: €458 million (–13%)

• Margin: 12.1%

Pricing pressure in pulp and uncoated fine paper weighed on margins.

Flexible Packaging

• Revenue: €3,941 million (–1%)

• Underlying EBITDA: €583 million (+4%)

• Margin: 14.8%

Paper bags volumes grew 5%, supported by strong demand in construction and industrial applications.

🔮 2026 Outlook

• Paper prices modestly lower entering 2026

• Maintenance shut impact estimated at €100 million EBITDA in 2026

• Net finance costs expected around €125 million

• Effective tax rate expected around 25%

• Focus on disciplined volume growth, margin management and cost optimisation

Management remains confident in long-term structural growth drivers in sustainable packaging and expects to capture upside as markets recover.