Mondi Reports Lower First-Half 2026 Earnings as Cost Pressures Weigh, Advances Performance Improvement Programme

Mondi plc reported lower earnings for the first six months ended 30 June 2026 as higher input costs, lower average selling prices and a forestry fair value loss offset higher sales volumes and operational improvements. The packaging and paper group recorded underlying EBITDA of €379 million, compared with €564 million in the first half of 2025, while revenue increased slightly to €3.975 billion from €3.909 billion a year earlier.

The company said margin pressure from rising wood, energy, logistics and raw material costs, combined with lower average selling prices, was partially offset by higher sales volumes and pricing actions implemented during the period. Cash generated from operations totalled €347 million, supported by working capital management, while expected capital expenditure for the full year has been reduced to around €500 million, from previous guidance of €550 million.

Mondi continued executing its operational improvement programme, announcing progress on its converting plant network optimisation. Six converting plants have been closed or are in the process of closure across corrugated and flexible packaging operations, with the restructuring expected to reduce headcount by approximately 580 roles by year-end. The company said the programme is intended to improve productivity, simplify operations and strengthen long-term competitiveness.

The company also reported special item pre-tax charges of €320 million, comprising €296 million in impairment charges and €24 million related to restructuring and closure costs. Major impairments were recognised at the Duino recycled containerboard mill in Italy, the Neusiedler uncoated fine paper operations in Austria and the Schwarzenberg solidboard mill in Germany.

Chief Executive Officer Andrew King said the company had made progress in strengthening performance, cash generation and competitiveness despite geopolitical-related supply chain disruptions and higher input costs. He added that trading momentum improved during the first half, supported by higher packaging paper prices and good order books entering the second half of the year.

The board declared an interim ordinary dividend of 9.42 euro cents per share, compared with 23.33 euro cents in the first half of 2025.