PR Newswire
LONDON, United Kingdom, February 19
Mondi plc
(Incorporated in England and Wales) ISIN: GB00BMWC6P49
(Registered number: 6209386)LSE share code: MNDI
LEI: 213800LOZA69QFDC9N34 JSE share code: MNP
This announcement contains inside information
19 February 2026
Resilient full year performance; Actions taken to drive value;
Strongly positioned to capture upside
Mondi, a global leader in the production of sustainable packaging and paper,
today announces its results for the 12 months to 31December 2025.
Andrew King, Mondi Group Chief Executive Officer, commented:
«Our industry continues to work through a prolonged cyclical downturn, yet we
delivered a resilient full year financial performance, achieving underlying
EBITDA of €1,001 million. This reflects the strength of our cost advantaged and
integrated assets, our quality product offering, the commitment of our people
and the targeted strategic actions taken to enhance our competitive advantage.
«We have intensified our focus on operational excellence and cost discipline.
Bringing together Corrugated Packaging and Uncoated Fine Paper has streamlined
our organisation and accelerated the delivery of operational synergies. Our cost
-out programmes continue to deliver tangible results and the integration of
Schumacher is capturing additional synergies. At the same time, we are
proactively optimising our production footprint, including the recently
announced closures of three plants across our paper bags and corrugated
solutions network.
«We have also taken clear and disciplined decisions on capital allocation.
Following a period of investment into our structurally growing markets, we are
now prioritising maintenance capital expenditure and cost-optimisation
opportunities. Furthermore, the Board is recommending to bring the dividend back
in line with our cover policy. Combined with our robust financial position and
proactive liquidity management, these actions put us on a strong footing for the
year ahead and position us well for the future.
«Going into 2026, it remains unclear when geopolitical and macroeconomic
conditions will improve. Paper prices are modestly lower, on average, than those
seen in the final quarter of 2025. We are, however, confident in our ability to
navigate these headwinds effectively through disciplined volume growth as we
leverage our recent capacity expansions, strong margin management and cost
optimisation.
«We remain confident in the structural growth drivers that underpin our
packaging businesses and Mondi is strongly positioned to capture the upside as
market conditions improve. Our innovative packaging and paper solutions, cost
advantaged and integrated assets, and disciplined approach to capital allocation
position the Group well to deliver long-term value for our shareholders.»
Financial summary
€million, Year ended Year ended Change Six months ended Six months
unless 31December 31December 31December 2025 (H2 ended
otherwise 2025 2024 % 2025)
stated 30 June
2025 (H1
2025)
Group revenue 7,663 7,416 3 3,754 3,909
Underlying 1,001 1,049 (5) 437 564
EBITDA1
Forestry fair 39 7 21 18
value gain
Underlying 962 1,042 416 546
EBITDA
excluding
forestry fair
value gain1
Underlying 13.1% 14.1% 11.6% 14.4%
EBITDA
margin1
Profit before 269 378 (29)
tax
Basic 56.5 82.7 (32)
underlying
earnings
per share
(euro cents)1
Basic 37.4 49.1 (24)
earnings per
share
(euro cents)
Total 28.25 70.00
ordinary
dividend
per share
(euro cents)
Cash 1,072 970 11
generated
from
operations
Net debt to 2.6 1.7
underlying
EBITDA
(times)1
Return on 6.7% 9.6%
capital
employed
(ROCE)1
1The Group presents certain measures that are not defined or specified according
to International Financial Reporting Standards. Refer to the Alternative
Performance Measures (APMs) section at the end of this document for further
detail.
Enquiries
Investors/analysts:
Fiona Lawrence +44 742 587 8683
Mondi Group: Head of Investor Relations
Media:
Kerry Cooper +44 7881 455 806
Mondi Group: Group Communication Director
Richard Mountain+44 790 968 4466
FTI Consulting
The person responsible for arranging the release of this announcement on behalf
of Mondi plc is Jenny Hampshire, Company Secretary.
Results presentation details
A webinar will be held today at 08:30 (GMT), 09:30 (CET), 10:30 (SAST).
Event registration link: https://storm-virtual
-uk.zoom.us/webinar/register/WN_mGNmWdnpQVeTZgwz7wLvWQ
Once registered, you will receive a confirmation email from `MONDI Group Events’
with the webinar link and ID.
A replay will be available on our website within a couple hours after the end of
the live results presentation at:
https://www.mondigroup.com/investors/results-reports-and-presentations/
For any queries, please email [email protected]
Delivering value-accretive growth, sustainably
Fragile consumer and industrial confidence driven by macroeconomic uncertainty
and geopolitical tensions continue to weigh on demand in many of our core
markets. These cyclical pressures have been exacerbated by the current supply
side changes in capacity, notably in recycled containerboard and pulp, which
have seen significant net capacity additions, and in uncoated fine paper, where
industry supply side responses to weaker market demand proved to be inadequate.
In contrast, virgin containerboard and kraft paper – where Mondi is a market
leader – have seen limited supply growth.
Despite the current pressures, we remain confident that the structural growth
drivers for sustainable packaging remain intact, underpinned by the continued
growth in eCommerce and the transition to circular solutions, driven by both
customer preference and regulation. The move to more sustainable packaging
continues and we see ever greater engagement from our customers to develop new
sustainable solutions which they can implement at scale.
Mondi is unique. We have the scale and capability to produce a broad range of
corrugated and flexible packaging solutions that customers truly need. Our teams
combine materials knowledge with operational and commercial excellence to
deliver high-quality products. We help customers transition to recyclable,
paper-based and high-performance alternatives that meet rising sustainability
expectations without compromising protection or efficiency. From virgin
packaging for food safety compliance, to ultra-strong paper bags for industrial
applications and a full range of boxes and bags for eCommerce. Our innovation
capabilities extend to advanced solutions combining paper, functional barriers
and seals for use in FMCG and pet food packaging.
Our offering is underpinned by cost-advantaged pulp and paper mills located
close to raw material sources and a well-positioned, integrated converting
network that optimises logistics and operational efficiency. These factors
create a strong competitive advantage and enable Mondi to cost effectively
deliver innovative, sustainable products of the highest quality and reliability.
We will continue to grow sustainable packaging across our two complementary
business units leveraging our cost-advantaged, integrated assets and our leading
market positions.
In Corrugated Packaging, we are focused on optimising and developing our
strength in Europe and adjacent geographies, leveraging our upstream paper
platform and recently enlarged converting network. We continue to optimise our
uncoated fine paper assets, tightly manage costs and maintain market leadership
positions.
In Flexible Packaging we pursue segment-differentiated growth. In industrial end
markets we continue to grow globally as a high quality, global leader in sack
kraft paper and industrial bags, with significant integration and scale
advantage. In consumer applications, including speciality kraft paper,
MailerBags and consumer flexibles, we seek to leverage our capabilities and
leading market positions in complex packaging solutions across a range of
substrates focused in Europe and North America.
We remain confident in our strategy and in the long-term structural growth
drivers of our packaging businesses. At the same time, we recognise the
near-term challenges and associated risks across our markets. In response, we
have acted quickly and decisively to support earnings, cashflow and liquidity –
actions that continue to strengthen the Group in the short term and will drive
stronger returns as market conditions improve.
Decisive actions to drive value and enhance competitive advantage
With some of the most productive and lowest cost pulp and paper mills in Europe,
we already benefit from strong cost leadership, further strengthened by an
integrated business model offering significant value chain synergies. However,
we have taken decisive actions to go further, driving cost advantage and
improving the efficiency and competitiveness of the Group.
1. Accelerating operational excellence programmes to drive productivity and
efficiency
Operational excellence is core to Mondi’s competitive strength and sustainable
growth. It defines how we run our business every day, eliminating productivity
losses, improving efficiency and enabling our people to deliver consistent, high
-quality performance across the value chain. As an example, these actions have
resulted in improved productivity across our paper bag converting plants by 5%
in 2025 when compared to 2024.
We are accelerating our approach to operational excellence with new programmes
driving a zero-loss productivity mindset and a disciplined, systematic way of
operating. We are optimising processes, lowering costs and strengthening asset
reliability, which is lifting right-first-time performance, reducing lead times
and deepening customer trust. These gains create a lasting structural advantage:
faster innovation cycles, higher energy and resource efficiency and production
that adapts more flexibly to customer needs.
One year into this multi-year programme, momentum is building. An early adopter
was a production line at a containerboard mill which has already reduced
unscheduled operating downtime and improved total efficiency by 3% above the
historic average. There are further improvements to come across all our
production lines as we adopt this systematic approach to operational excellence.
2. Delivering efficiency gains through plant network optimisation
Our ongoing commitment to improving productivity, enhancing cost advantage and
ensuring our network remains fit for the future has led us to close 22
converting plants in the last ten years. We follow a disciplined approach to
allocating capital where growth potential is strongest and customer demand
greatest. We prioritise more efficient sites and superior service to our
customers.
We have announced the closure of three further sites in the last three months, a
corrugated solutions plant in Turkiye and paper bag plants in Hungary and
Germany. We will continue to serve our customers out of alternative plants in
our network, which have the required know-how and capacity to ensure a smooth
and seamless transition.
The integration of Schumacher Packaging’s Western Europe Packaging Assets
(Schumacher) has further strengthened our corrugated solutions network. It is
enabling greater optimisation across our footprint and unlocking efficiencies
that support our long-term growth. We are confident in the delivery of €32
million cost synergies over the three years from completion, an increase from
the €22 million initially envisaged.
3. Focused fixed cost control
We continue to execute targeted cost-out initiatives with a clear mandate: drive
efficiency, eliminate non-essential activities and strengthen the core
revenue-generating areas of the business.
While we have increased headcount to support capacity expansion projects and
respond to higher customer demand, we have streamlined the overhead structure
and operational headcount where appropriate. Over the past 12 months we have
reduced headcount by approximately 1,000, driven from greater efficiency in our
operations, plant closures, and a 13% reduction in our Group Services offices.
The three recently announced plant closures will further reduce headcount by
approximately 200. We are continually looking to drive additional efficiencies
across our network.
We combined Corrugated Packaging and Uncoated Fine Paper into a single business
unit. This facilitates a more streamlined organisation supporting faster
decision making, cost take-out and delivery of operational synergies across our
pulp and paper mills while retaining our customer focused value chain
orientation.
Driving cash generation and disciplined capital allocation
We intensified our focus on cash generation during 2025 and generated higher
cash from operations of €1,072 million (2024: €970 million) driven by a strong
focus on working capital management.
During the year, we invested €673million in property, plant and equipment (2024:
€933 million) which included spend on previously approved and now completed
major capacity expansion projects. Capital expenditure for 2026 is expected to
be approximately €550 million, lower than the €650 million previously guided.
This will focus on maintenance and targeted cost-optimisation opportunities
including enhancing energy efficiency, improving productivity and strengthening
the resilience of our asset base. Importantly, this reduction does not
compromise safety, asset integrity or our ability to capture the upside as
markets recover.
We have a robust financial position with no financial covenants and an
investment grade credit rating. Our upcoming bond maturity in April 2026 has
been refinanced by a €550 million Eurobond issued in October 2025, with no
further debt maturity until 2028.
The Board has recommended a total ordinary dividend for 2025 of 28.25 euro cents
per share, reflecting a return to the Group’s stated dividend cover policy of
two to three times underlying earnings on average through cycle.
Delivering a differentiated customer value proposition
We see ever greater engagement from customers to develop sustainable solutions
which they can implement at scale.
To support our continued growth in eCommerce we have combined our sales teams
across corrugated and flexible packaging to provide a single point of entry for
customers as their packaging needs evolve.
We are consistently innovating and exchanging know-how across the Group to
deliver the widest range of recyclable, paper-based and high-performance
solutions, as recognised by the nine WorldStar Packaging awards for innovation
we won this year. We are working to offer our customers a circular solution for
100% of our packaging and paper products by 2030.
Our operational excellence programmes enhance our customer offering by focusing
on right-first-time performance, reduced production lead times and more
flexibility. These programmes will also drive greater energy efficiency
improving our sustainability impact and supporting customers’ Scope 3
commitments.
Strongly positioned to capitalise as markets recover
We are very proud of our teams for completing the build and start-up phase of
the recent major capacity expansion projects on time and on budget. Our focus is
now on delivering full productivity ramp-up, executing our commercial strategy,
driving cash generation and delivering strong returns.
Similarly, the integration of Schumacher and delivery of associated cost
synergies is progressing well, with the focus going forward on leveraging the
expanded geographic footprint and well-invested asset base to drive profitable
growth.
While the current cyclical downturn is proving more protracted than those seen
in the past, we are confident in our ability to navigate this effectively
through disciplined volume growth as we leverage our recent capacity expansions,
strong margin management and cost optimisation.
We remain confident in the structural growth drivers that underpin our packaging
businesses and Mondi is strongly positioned to capture the upside as market
conditions improve. Our innovative packaging and paper solutions, cost
-advantaged and integrated value chain, and disciplined approach to capital
allocation position the Group to deliver long-term value for our shareholders.
Group performance
Group revenue of €7,663 million was up on the prior year (2024: €7,416million)
driven by higher sales volumes and the revenue contribution from the Schumacher
acquisition, despite sharply lower uncoated fine paper and pulp selling prices.
Underlying EBITDA was lower than the prior year at €1,001 million (2024:
€1,049million) due to margin pressure associated with the challenging trading
conditions. The Group’s underlying EBITDA margin was 13.1% (2024: 14.1%).
Pricing across all input cost categories was stable in 2025 compared to the
prior year mirroring the muted economic backdrop. Total input costs were higher
year on year as a result of higher volumes both organically and from
acquisitions. In early 2026 input costs are broadly stable and similar to
average 2025 levels.
Total maintenance costs were broadly similar to the prior year. These included
the impact from planned maintenance shuts of which the majority were completed
in the second half of the year. In 2026, we expect a similar phasing of planned
maintenance shuts as in 2025, with a total estimated underlying EBITDA impact of
around €100 million.
Personnel costs were higher year on year driven by the inclusion of Schumacher’s
cost base following the acquisition as well as inflationary cost pressures.
Other operating expenses were flat on a comparative basis, testament to our
continued focus on cost control and driving efficiency improvements.
Currency movements had a net neutral impact on underlying EBITDA compared to the
prior year. The negative impact from a weaker US dollar in the current year was
offset by the non-recurrence of the loss recognised in 2024 from the devaluation
of the Egyptian pound.
Depreciation, amortisation and impairment underlying charges were higher at €504
million (2024: €443million) as a result of the start up of a number of capital
investment projects in the year and the inclusion of the acquired Schumacher
plants. We expect these charges in 2026 to be marginally higher, at around €515
-525 million, due to annualising effects.
Net finance costs of €112 million were above the prior year (2024: €70 million)
due to a higher average net debt balance and higher interest costs from
refinancing. In 2026, we expect net finance costs of around €125 million due to
higher average net debt.
The underlying tax charge for the year was €91 million, giving an effective tax
rate of 24% (2024: €117 million, 22%). In 2026, we expect an effective tax rate
of around 25%.
A special item pre-tax charge of €106million (2024: €150million) was recognised
in the year. €18million of restructuring and closure costs, and €57million of
impairment charges were incurred from optimising our converting plant network,
streamlining overhead costs and impairing converting assets in emerging Europe,
including in Turkiye where economic and inflationary pressures are impacting
profitability. In addition, it includes €24 million of transaction-related costs
and €7 million of additional costs relating to special items initially reported
in 2024.
Basic underlying earnings per share were 56.5 euro cents (2024: 82.7 euro cents)
reflecting the lower underlying earnings compared to 2024. After taking special
items into account, basic earnings per share were 37.4 euro cents (2024: 49.1
euro cents).
Cash flow
Cash generated from operations was higher than the previous year at €1,072
million (2024: €970 million) driven by strong working capital management as
reflected in a working capital cash inflow in the year of €83 million.
Investment in property, plant and equipment of €673million in the year (2024:
€933million) was lower than the previously guided €750-850 million driven by our
ongoing focus on cash management.
The acquisition of Schumacher completed on 31 March 2025 and comprised a total
cash consideration of €506 million and net debt of €103 million.
The total cash outflow in the year from special items totalled €47million.
Tax paid was €87 million (2024: €120 million) and interest paid was €95 million
(2024: €79 million), including derivative interest.
The Group paid ordinary dividends of €305million. This, together with dividends
paid to non-controlling interests in the year of €47 million, resulted in
dividend payments totalling €352 million in the year.
Liquidity, treasury and borrowings
Net debt at 31December 2025 was €2,599million, with net debt to underlying
EBITDA at 2.6 times (31December 2024: €1,732million, 1.7 times). The increase in
net debt and related leverage year on year was mainly due to investment into the
business including the acquisition of Schumacher and major capital investment
projects. Our financing agreements do not contain financial covenants.
Mondi’s available liquidity at 31December 2025 was €1,292 million, comprising
the undrawn Syndicated Revolving Credit Facility (RCF) of €1,000 million and
cash and cash equivalents of €292 million.
The Group has an investment grade credit rating with a BBB (stable outlook)
credit rating from Standard & Poor’s and a Baa1 (negative outlook) credit rating
from Moody’s.
During the year we increased our Syndicated RCF by €250 million from €750
million up to €1 billion, effective from January 2025 and in March 2025 issued a
3.750% €600 million Eurobond with an 8-year tenor, thereby strengthening
liquidity and extending the Group’s debt maturity profile. In addition, the
Group issued a 3.375% €550 million Eurobond with a 5-year tenor in October 2025
in order to refinance the Group’s only significant near-term debt maturity being
the Eurobond maturing in April 2026. Following this issuance, the Group early
settled €321 million of the Eurobond maturing in April 2026. The Group intends
to settle the remaining balance of €279 million on maturity using existing
facilities. The weighted average maturity of our committed debt facilities at
the end of the year was 4.8 years.
Business unit review
The Group has reorganised its business units during the year and combined the
Uncoated Fine Paper business unit with Corrugated Packaging to form anenlarged
Corrugated Packaging business unit.
Corrugated Packaging
Mondi is a leading European corrugated packaging producer, with a cost
-competitive asset base, integrated production network and strong customer
offering focused on quality, reliability and service.
We are the leading virgin containerboard producer in Europe and the largest
containerboard producer in emerging Europe. Our virgin containerboard is a high
-quality product with excellent properties for specialised end-use applications,
ideal to meet our customers’ needs around the globe.
As a leading corrugated solutions producer in central and emerging Europe, we
leverage our integrated production network and partner with our customers to
create fully recyclable corrugated boxes.
In addition, we produce a wide range of printing papers at our mills in central
Europe and South Africa where we have regional leadership positions. We also
produce market pulp in South Africa for customers around the world.
€million and Year ended Year ended Change Six months Six months ended 30
percentage 31December 31December ended June 2025 (H1 2025)
2025 2024 % 31December
2025 (H2 (restated)
(restated) 2025)
Segment 3,775 3,519 7 1,882 1,893
revenue
Underlying 458 526 (13) 174 284
EBITDA
Forestry 39 7 21 18
fair value
gain
Underlying 419 519 153 266
EBITDA
excluding
forestry
fair
value gain
Underlying 12.1% 14.9% 9.2% 15.0%
EBITDA
margin
(%)
Capital 4,265 3,742
employed
ROCE (%) 4.4% 8.5%
Corrugated Packaging delivered underlying EBITDA of €458million and margin of
12.1% (2024: €526million, 14.9%). Containerboard achieved sales volume growth
and delivered higher average selling prices compared to 2024. Corrugated
Solutions’ performance was lower year on year with lower margins more than
offsetting box volume growth. Uncoated fine paper and pulp pricing was
significantly below the prior year’s averages, impacting the overall business
unit’s performance. This lower pricing effect, together with the impact from
scheduled maintenance shuts undertaken predominantly in the second half of the
year, resulted in a lower sequential half-on-half performance for Corrugated
Packaging (H2 2025: €174 million, H1 2025: €284 million).
In Containerboard, our sales volumes were up on the prior year. This was driven
by the growing demand from our customers for our broad range of paper grades
with additional volumes fulfilled by our new capacity following major capital
investment projects at our mills in Swiecie (Poland), Duino (Italy) and Kuopio
(Finland). Average containerboard selling prices were higher than the prior year
with achieved price increases in the first half of the year followed by price
reductions in the second half of the year and in early 2026.
Corrugated Solutions achieved 2% organic box volume growth compared to 2024
driven by demand for sustainable packaging solutions for consumer end-use
applications. In addition, the Schumacher acquisition completed on 31 March 2025
with its results included for nine months of the year. This acquisition further
strengthens our customer offering with a broader geographic reach. Overall,
margins were lower than the prior year as a result of labour cost inflation and
higher paper input costs which were not able to be passed through pricing due to
intense competition in key markets.
In Uncoated Fine Paper, and against a backdrop of weaker market demand, the
business delivered broadly stable sales volumes, successfully increasing market
share, testament to its strong customer offering. Average selling prices were
however significantly lower than the prior year as industry supply side
responses to the weaker market demand proved inadequate.
Pulp prices were, on average, significantly lower year on year, with prices
rising modestly in early 2025 but decreasing sharply at the end of the first
half of the year and remaining under pressure during the second half.
The forestry fair value gain was higher at €39million in the year (2024:
€7million).
Return on capital employed (ROCE) was lower than the prior year at 4.4% (2024:
8.5%) driven by an increase in capital employed due to the start up of a number
of major capacity expansion projects and the acquisition of Schumacher, together
with the impact of lower earnings in the year.
Flexible Packaging
We are a global producer of flexible packaging, offering our customers a unique
portfolio of solutions across industrial and consumer end-use applications.
Approximately 50% of our revenue is derived from industrial end-use
applications, where we are the global market leader in sack kraft paper and
paper bag production. Our customer offering is further supported by our strong
integration, scale, security of supply and global reach.
We generate approximately 50% of our revenue from consumer end-use applications,
producing complex consumer packaging solutions across multiple substrates, with
leadership positions in our chosen markets.
€million and Year ended Year ended Change Six months ended Six months
percentage 31December 31December 31December 2025 (H2 ended
2025 2024 % 2025) 30 June
2025 (H1
2025)
Segment 3,941 3,964 (1) 1,897 2,044
revenue
Underlying 583 558 4 281 302
EBITDA
Underlying 14.8% 14.1% 14.8% 14.8%
EBITDA margin
(%)
Capital 3,622 3,418
employed
ROCE (%) 10.4% 11.5%
Flexible Packaging’s underlying EBITDA was higher at €583million with margin of
14.8% (2024: €558million, 14.1%) as good cost control and sales volume growth in
paper bags mitigated the impact of lower kraft paper volumes. Consumer Flexibles
and Functional Paper and Films delivered good, resilient performances supported
by our focus on high-margin products. Flexible Packaging’s underlying EBITDA was
down in the second half of the year compared to the first half, impacted by
scheduled mill maintenance shuts and a slowdown in demand relative to the strong
start to the year.
In Kraft Paper, we successfully ramped up volumes at our new paper machine at
our Steti mill (Czech Republic). Overall kraft paper sales volumes were lower
compared to the prior year driven by softer market demand and the loss of
volumes from the Stambolijski mill (Bulgaria) that stopped operating in the
second half of 2024.
Paper Bags delivered a good performance with sales volumes up 5% on the prior
year. This was supported by good demand for construction and building material
bags in emerging markets, solid demand for traditional industrial end uses in
Europe, and good growth in eCommerce solutions in Europe and the US.
Average pricing across the kraft paper and paper bag value chain was broadly
similar year on year with price increases in the first half of the year offset
by price reductions in the second half. Kraft paper prices in 2026 are currently
lower than 2025 average prices.
Consumer Flexibles and Functional Paper and Films continued to provide our
customers with a broad range of innovative and sustainable packaging solutions,
supported by a number of recently completed investments which enhance our
capabilities and consolidate our leading positions in our chosen markets.
Principal risks
The Board is responsible for the effectiveness of the Group’s risk management
activities and internal control processes. It has put procedures in place for
identifying, evaluating, and managing the risks faced by the Group. In
combination with the Audit Committee, the Board conducted, over the course of
the year, a robust assessment of the Group’s principal and emerging risks to
which Mondi is exposed and it is satisfied that the Group has effective systems
and controls in place to manage these risks relative to the risk appetite levels
established.
Risk management is by its nature a dynamic and ongoing process. Risk management
is of key importance given the diversity of the Group’s locations, markets and
production processes. Our internal controls aim to provide reasonable assurance
as to the accuracy, reliability and integrity of our financial information, non
-financial disclosures and the Group’s compliance with applicable laws,
regulations and internal policies as well as the effectiveness of internal
processes.
The Group’s most significant risks are long-term in nature. We assess and update
ourprincipal risks throughout the year toreflect the developments in our
strategicpriorities and Board discussions onprincipal and emerging risks.
The Group utilises a four-point risk appetite rating scale against which the
residual risk of each principal risk can be considered. Where a difference is
identified between the risk appetite and residual risk rating, the risk owner
provides an explanation for and a chosen approach to address the differential to
the Executive Committee and the Board.
A detailed risk assurance map is used to present our principal risks to the
Board, Audit Committee and Sustainable Development Committee, facilitating
comprehensive discussions on risk. The Board, in combination with the Audit
Committee, is satisfied that the review performed has enhanced the Group’s
approach to risk management. The Group remains committed to the continuous
improvement of risk assessment, risk management and risk reporting.
Key changes in the year
The key changes to the Group’s principal risks identified during 2025 are set
out below.
The country risk was derated with an assessed decrease in impact. The derating
reflects the change in geographic capital allocation over recent years. This is
supported by the Group’s recent capital investment projects and acquisitions in
low risk countries, which contributes to lowering the Group’s country risk
profile.
The cost and availability of raw materials risk was derated with a decreased
likelihood due to the improved fibre security outlook. This conclusion follows a
review of current wood market supply and demand, which reflects reduced demand
and supports the expectation that the risk around availability of fibre has
reduced.
In 2025, significant cyber security incidents were reported in the media,
particularly related to large corporates based in the United Kingdom. The Group
continues to focus on cyber security risk, with emphasis on maintaining
effective detective and preventative controls to mitigate this risk to levels
consistent with the Group’s risk appetite. The residual risk rating remains
unchanged however, as an elevated level of focus is maintained for this risk.
We acknowledge that geopolitical uncertainties continue to affect business
confidence and levels of economic activity. The Group continues to embed
geopolitical risk and related effects on production, supply chains and customers
within our principal risks.
Emerging risks
On 31 March 2025, the Group completed the Schumacher acquisition. Since
acquisition, the Group has focused on integrating the business. The risks
related to the acquisition include the integration ofa private company into a
public company environment, the scale of the acquisition, the need to integrate
IT systems and controls, and the combining of different corporate cultures. The
Board continues to monitor the integration and is confident that the integration
risks are being well mitigated, and that continued inclusion as an emerging risk
and not as a principal risk is the correct judgement.
The Group’s recent major capacity expansion projects were built on time, on
budget and are operational. Our focus is now on achieving full productivity ramp
-up, executing our commercial strategy, driving cash generation and delivering
returns. The emerging risk concerning the start-up and commercial ramp-up of
major capital projects has evolved in 2025 to focus on the commercial ramp-up of
major capital projects. Commercial ramp-up is planned in detail from initial
project inception and amended for market conditions once start-up is complete.
Post-investment reviews are conducted onmajor capital investments toevaluate the
project execution against theplan and identify lessons learnt. We continue to
monitor and mitigate potential risks relating to the commercial ramp-up of major
capital projects.
Strategic risks
The industries and geographies in which we operate expose us to specific long
-term risks which are accepted by the Board as a consequence of the Group’s
chosen strategy and operatingfootprint.
We continue to monitor recent capacity announcements, demand developments and
how consumers are demanding more sustainable packaging. We continue to develop
our understanding of climate change risks and its impact whilst continuing to
improve our disclosures and responses.
The Executive Committee and the Board monitor our exposure to these risks and
evaluate investment decisions against our overall exposures so that our
strategic capital allocation takes advantage of the opportunities arising from
our deliberate exposure to suchrisks.
Our principal strategic risks relate to the following:
· Industry productive capacity
· Product substitution
· Fluctuations and variability in selling prices or gross margins
· Country risk
· Climate change risks
Financial risks
We aim to maintain an appropriate capital structure and to manage our financial
risk exposures in compliance with all laws and regulations.
An attentive approach to financial risk management remains in response to tax
risks and ongoing short-term currency volatility.
Our principal financial risks relate to the following:
· Capital structure
· Currency risk
· Tax risk
Operational risks
As a Group we focus on operational excellence and investment in our people and
are committed to the responsible use of resources.
Our investments to improve our energy efficiency, engineer out our most
significant safety risks and improve operating efficiencies reduce the
likelihood of operational risk events.
Our principal operational risks relate to the following:
· Cost and availability of raw materials
· Energy security and related input costs
· Technical integrity of our operating assets
· Environmental impact
· Employee and contractor health and safety
· Attraction and retention of key skills and talent
· Cyber security risk
Compliance risk
We have a zero tolerance approach to non-compliance. Our strong culture and
values underpin our approach. These are emphasised in every part of our business
with a focus on integrity, honesty and transparency.
Our principal compliance risk relates to reputational risk.
A more detailed description of our principal risks can be found in the Group’s
2024 Integrated Report. The 2025 Integrated Report is planned to be published in
March 2026.
Going concern
The directors have reviewed the Group’s budget and considered the assumptions
contained in the budget, including consideration of the principal risks which
mayimpact the Group’s performance in the18months following the balance sheet
date and considerations of the period immediately thereafter.
The Group has a robust balance sheet. At31December 2025, the Group had
aliquidity position of €1,292 million, comprising €1,000 million of undrawn
committed debt facilities and cash and cash equivalents of €292 million
available. As the Group’s debt facilities and loan agreements contain no
financial covenants, in performing its going concern assessment the directors
have focused on liquidity.
The Board believes that the Group’s financial position,supported by its
investment grade credit ratings fromMoody’s (Baa1, outlook negative) and
Standard & Poor’s (BBB, outlook stable), ensures the Grouphas access to funding
through thegoing concern period.
The current and possible future impact from the macroeconomic environment on the
Group’s activities and performance has been considered by the Board in preparing
its going concern assessment. The base case forecasts for the Group, being those
arising over the 18-month going concern assessment period as reflected in the
Group’s 2026-2028 plan, were sensitised to reflect a severe but plausible
downside scenario on Group performance.
The scenario testing assumed severe but plausible volume and margin reductions
happening in combination and was carried out against Mondi’s current committed
debt facilities. During the year, the Group successfully refinanced the Group’s
€600 million Eurobond maturing in April 2026 through issuance of a new bond,
thereby removing the need for any refinancing assumption in the going concern
period. This testing does not incorporate any mitigation actions such as
reductions and deferrals of capital and operational expenditure or cash
preservation responses, which the Group would implement in the event of severe
and extended revenue decline.
In the severe but plausible downside scenario, the Group has sufficient
liquidity headroom throughout the entire period covered by the going concern
assessment.
In addition to its modelled downside going concern scenario, the Board has
reverse stress tested the model to determine the extent of downturn which would
result in no liquidity headroom. The test was conducted based on the Group’s
current committed debt facilities, with no assumption of refinancing for any
facilities maturing during the assessment period. A decline of 100% of the
planned underlying EBITDA in the period until 30 June 2027, meaning no EBITDA
generation at all, well in excess of that contemplated in the severe but
plausible downside scenario, would need to persist throughout the observed
period to result in no liquidity headroom, which is considered very unlikely.
This reverse stress test also does not incorporate mitigating actions such as
reductions and deferrals of capital and operational expenditure or cash
preservation responses, which the Group would implement in the event of a severe
and extended revenue decline.
Following its assessment, the directors have formed a judgement, at the time of
approving the condensed consolidated financial statements, that there are no
material uncertainties that cast doubt on the Group’s going concern status and
that it is a reasonable expectation that the Group has adequate resources to
continue inoperational existence for the going concern period. For this reason,
the Group continues to adopt the going concern basis in preparing the condensed
consolidated financial statements for the year ended 31December 2025.
Audited financial information
The condensed consolidated financial statements and notes 1 to 18 for the year
ended 31December 2025 are derived from the Group annual financial statements
which have been audited by PricewaterhouseCoopers LLP. The unmodified audit
report is available for inspection at the Group’s registered office.
Condensed consolidated income statement
for the year ended 31December 2025
2025 2024
€million Notes Underlying Special Total Underlying Special
Total
items items
(Note4) (Note4)
Group revenue 3 7,663 – 7,663 7,416 –
7,416
Materials, energy (3,876) – (3,876) (3,696) –
(3,696)
and
consumables used
Variable selling (680) – (680) (645) –
(645)
expenses
Gross margin 3,107 – 3,107 3,075 –
3,075
Maintenance and (432) – (432) (425) –
(425)
other
indirect expenses
Personnel costs (1,345) (19) (1,364) (1,228) (18)
(1,246)
Other net (329) (28) (357) (373) (58)
(431)
operating
expenses
EBITDA 3 1,001 (47) 954 1,049 (76) 973
Depreciation, (504) (59) (563) (443) (74)
(517)
amortisation
and impairments
Operating profit 3 497 (106) 391 606 (150) 456
Net loss from (1) – (1) (3) – (3)
joint ventures
Net finance costs (112) – (112) (70) –
(70)
Investment income 12 – 12 30 – 30
Foreign currency 2 – 2 (3) – (3)
gains/(losses)
Finance costs (126) – (126) (97) –
(97)
Net monetary loss (9) – (9) (5) – (5)
arising
from
hyperinflationary
economies
Profit before tax 375 (106) 269 528 (150) 378
Tax 6 (91) 19 (72) (117) 1
(116)
(charge)/credit
Profit for the 284 (87) 197 411 (149) 262
year
Attributable to:
Non-controlling 35 (3) 32 44 – 44
interests
Shareholders 249 (84) 165 367 (149) 218
Earnings per
share (EPS)
attributable to
shareholders
euro cents
Basic EPS 7 37.4
49.1
Diluted EPS 7 37.4
49.1
Basic underlying 7 56.5
82.7
EPS
Diluted 7 56.5
82.6
underlying EPS
Condensed consolidated statement of comprehensive income
for the year ended 31December 2025
2025 2024
€million Before Tax Net of Before Tax Net of
tax tax tax tax
amount charge amount amount credit amount
Profit for the 197 262
year
Items that may
subsequently
be or have
been
reclassified
to the
condensed
consolidated
income
statement
Fair value – – – (2) 1 (1)
losses arising
from cash flow
hedges
Exchange (4) – (4) 75 – 75
differences on
translation of
non-euro
operations
Items that
will not
subsequently
be
reclassified
to the
condensed
consolidated
income
statement
Remeasurements 8 (2) 6 (2) – (2)
of retirement
benefits plans
Other 4 (2) 2 71 1 72
comprehensive
income/(expense
) for the year
Other
comprehensive
income/(expense
) attributable
to:
Non (5) 11
-controlling
interests
Shareholders 7 61
Total
comprehensive
income
attributable
to:
Non 27 55
-controlling
interests
Shareholders 172 279
Total 199 334
comprehensive
income for the
year
Condensed consolidated statement of financial position
as at 31December 2025
€million Notes 2025 2024
Property, plant and equipment 5,751 5,160
Goodwill 893 767
Intangible assets 110 70
Forestry assets 9 511 503
Investments in joint ventures 10 5
Financial instruments 25 29
Deferred tax assets 22 22
Net retirement benefits asset – 3
Other non-current assets 2 3
Total non-current assets 7,324 6,562
Inventories 1,213 1,194
Trade and other receivables 1,290 1,275
Current tax assets 21 22
Financial instruments 4 10
Cash and cash equivalents 13b 292 278
Total current assets 2,820 2,779
Total assets 10,144 9,341
Short-term borrowings 10 (344) (63)
Trade and other payables (1,366) (1,281)
Current tax liabilities (60) (67)
Provisions (59) (65)
Financial instruments (14) (9)
Total current liabilities (1,843) (1,485)
Medium- and long-term borrowings 10 (2,538) (1,952)
Net retirement benefits liability 11 (151) (161)
Deferred tax liabilities (346) (342)
Non-current tax liabilities (4) –
Provisions (34) (32)
Other non-current liabilities (28) (19)
Total non-current liabilities (3,101) (2,506)
Total liabilities (4,944) (3,991)
Net assets 5,200 5,350
Equity
Share capital 97 97
Own shares (16) (20)
Retained earnings 4,449 4,582
Other reserves 197 198
Total attributable to shareholders 4,727 4,857
Non-controlling interests in equity 473 493
Total equity 5,200 5,350
The Group’s condensed consolidated financial statements, including related notes
1 to 18, were authorised for issue by the Board on 18 February 2026 and were
signed on its behalf by:
Andrew KingMike Powell
DirectorDirector
Condensed consolidated statement of changes in equity
for the year ended 31December 2025
€million Equity Non Total
attributable to -controlling equity
shareholders interests
At 1 January 2024 5,655 441 6,096
Total comprehensive income for 279 55 334
the year:
Profit for the year 218 44 262
Other comprehensive income 61 11 72
Hyperinflation monetary 7 – 7
adjustments
Transactions with shareholders
in their capacity
asshareholders
Dividends (1,081) (6) (1,087)
Purchases of own shares (12) – (12)
Mondi share schemes’ charge 9 – 9
Injection from non-controlling – 3 3
interests
At 31December 2024 4,857 493 5,350
Total comprehensive income for 172 27 199
the year:
Profit for the year 165 32 197
Other comprehensive 7 (5) 2
income/(expense)
Hyperinflation monetary 1 – 1
adjustments
Transactions with shareholders
in their capacity
asshareholders
Dividends (see note 8) (305) (47) (352)
Purchases of own shares (8) – (8)
Mondi share schemes’ charge 10 – 10
At 31December 2025 4,727 473 5,200
Equity attributable to shareholders
€million 2025 2024 At 1 January 2024
Share capital 97 97 97
Own shares (16) (20) (17)
Retained earnings 4,449 4,582 5,434
Cumulative translation adjustment reserve (456) (456) (520)
Post-retirement benefits reserve (56) (59) (53)
Share-based payment reserve 15 19 19
Cash flow hedge reserve – – 1
Merger reserve 667 667 667
Other sundry reserves 27 27 27
Total 4,727 4,857 5,655
Condensed consolidated statement of cash flows
for the year ended 31December 2025
€million Notes 2025 2024
Cash flows from operating
activities
Cash generated from operations 13a 1,072 970
Dividends received from other 1 1
investments
Income tax paid (87) (120)
Net cash generated from operating 986 851
activities
Cash flows from investing
activities
Investment in property, plant and 3 (673) (933)
equipment
Investment in intangible assets (17) (13)
Investment in forestry assets 9 (50) (48)
Proceeds from the disposal of 18 17
property, plant and equipment
Acquisition of businesses, net of 12 (496) (6)
cash and cash equivalents
Interest received 10 32
Other investing activities 7 15
Net cash used in investing (1,201) (936)
activities
Cash flows from financing
activities
Proceeds from issue of Eurobond 13c 1,139 496
Repayment of Eurobond 13c (321) (500)
Proceeds from medium- and long 13c 307 215
-term borrowings
Repayment of medium- and long 13c (296) (215)
-term borrowings
Proceeds from short-term 13c 11 9
borrowings
Repayment of short-term 13c (77) (18)
borrowings
Repayment of lease liabilities 13c (36) (26)
Interest paid 13c (56) (44)
Dividends paid to shareholders 8 (305) (1,081)
Dividends paid to non-controlling (47) (6)
interests
Purchases of own shares (8) (12)
Injection from non-controlling – 3
interests
Net cash outflow from debt 13c (66) (47)
-related derivative financial
instruments
Net cash generated from/(used in) 245 (1,226)
financing activities
Net increase/(decrease) in cash 30 (1,311)
and cash equivalents
Cash and cash equivalents at 269 1,592
beginning of year
Cash movement in the year 13c 30 (1,311)
Effects of changes in foreign 13c (8) (12)
exchange rates
Cash and cash equivalents at end 13b 291 269
of year
Notes to the condensed consolidated financial statements
for the year ended 31December 2025
1 Basis of preparation
These condensed consolidated financial statements as at and for the year ended
31December 2025 comprise Mondi plc and its subsidiaries (referred to as the
Group), and the Group’s share of the results and net assets of its associates
and joint ventures.
The Group’s condensed consolidated financial statements have been derived from
the audited consolidated financial statements of the Group, prepared in
accordance with UK-adopted International Accounting Standards and with the
requirements of the Companies Act 2006 as applicable to companies reporting
under those standards. The Group’s condensed consolidated financial statements
do not contain sufficient information to comply with International Financial
Reporting Standards (IFRS Accounting Standards).
The financial information set out in these condensed consolidated financial
statements does not constitute the Company’s statutory accounts for the years
ended 31December 2025 or 2024 but is derived from those accounts. Statutory
accounts for 2024 have been delivered to the Registrar of Companies, and those
for 2025 will be delivered in due course. The auditors have reported on those
accounts; their report was (i) unqualified, (ii) did not include a reference to
any matters to which the auditors drew attention by way of emphasis without
qualifying their report and (iii) did not contain a statement under section 498
(2) or (3) of the Companies Act 2006. Copies of the unqualified auditors’ report
on the Integrated report and financial statements 2025 are available for
inspection at the registered office of Mondi plc.
The condensed consolidated financial statements have been prepared on a going
concern basis as discussed in the commentary under the heading `Going concern’
which is incorporated by reference into these condensed consolidated financial
statements.
The condensed consolidated financial statements have been prepared under the
historical cost basis of accounting, as modified by forestry assets, pension
assets, certain financial assets and financial liabilities held at fair value
through profit and loss, assets acquired and liabilities assumed in a business
combination and accounting in hyperinflationary economies.
2 Accounting policies
The same accounting policies and Alternative Performance Measures (APMs),
methods of computation and presentation have been followed in the preparation of
the condensed consolidated financial statements for the year ended 31December
2025 as were applied in the preparation of the Group’s annual financial
statements for the year ended 31December 2024, except for the amendments to IAS
12 which became effective for the financial year beginning on 1 January 2025.
The Group did not have to change its accounting policies or make any
retrospective adjustments as a result of adopting this amendment.
Alternative Performance Measures
The Group presents certain measures of financial performance and position that
are not defined or specified according to IFRS Accounting Standards and UK
-adopted International Accounting Standards. These measures, referred to as
Alternative Performance Measures, are defined at the end of this document.
3 Operating segments
The Group’s operating segments are reported in a manner consistent with the
internal reporting provided to the Executive Committee, the chief operating
decision-making body. These segments are managed based on the nature of the
products produced by each business and comprise two distinct segments (2024:
three). The segment information also includes APMs as defined at the end of this
document.
With effect from 1 October 2025, the Group reorganised its operating segments to
facilitate a more streamlined organisation supporting faster decision-making,
cost take-out and delivery of operational synergies across our pulp and paper
mills, while retaining its customer-focused value chain orientation. As part of
this reorganisation, the former Uncoated Fine Paper operating segment has been
combined with Corrugated Packaging to form a single enlarged Corrugated
Packaging operating segment. The aggregation is consistent with the management
approach under IFRS 8 and reflects how the Group is managed internally. Flexible
Packaging remains unchanged as a separate segment. Comparative segment
information for prior periods has been restated to reflect the new operating
segment structure. The reorganisation had no impact on the Group’s overall
result.
Year ended 31December 2025
€million, unless Corrugated Flexible Corporate Intersegment Total
otherwise stated Packaging Packaging elimination
Segment revenue 3,775 3,941 – (53) 7,663
Internal revenue (31) (22) – 53 –
External revenue 3,744 3,919 – – 7,663
Underlying EBITDA 458 583 (40) – 1,001
Depreciation, (280) (223) (1) – (504)
amortisation and
impairments
Underlying operating 178 360 (41) – 497
profit/(loss)
Special items before (67) (39) – – (106)
tax (see note 4)
Capital employed 4,265 3,622 (88) – 7,799
Trailing 12-month 4,048 3,445 (76) – 7,417
average capital
employed
Additions to non 961 381 – – 1,342
-current non-financial
assets
Investment in 325 348 – – 673
property, plant and
equipment
Underlying EBITDA 12.1 14.8 – – 13.1
margin (%)
Return on capital 4.4 10.4 – – 6.7
employed (%)
Average number of 10.2 11.8 0.1 – 22.1
employees (thousands)1
1 Presented on a full-time employee equivalent basis.
Year ended 31December 2024 (restated)
€million, unless Corrugated Flexible Corporate Intersegment Total
otherwise stated Packaging Packaging elimination
Segment revenue 3,519 3,964 – (67) 7,416
Internal revenue (30) (37) – 67 –
External revenue 3,489 3,927 – – 7,416
Underlying EBITDA 526 558 (35) – 1,049
Depreciation, (239) (203) (1) – (443)
amortisation and
impairments
Underlying operating 287 355 (36) – 606
profit/(loss)
Special items before (5) (132) (13) – (150)
tax
Capital employed 3,742 3,418 (78) – 7,082
Trailing 12-month 3,358 3,051 (126) – 6,283
average capital
employed
Additions to non 506 565 – – 1,071
-current non-financial
assets
Investment in 415 518 – – 933
property, plant and
equipment
Underlying EBITDA 14.9 14.1 – – 14.1
margin (%)
Return on capital 8.5 11.5 – – 9.6
employed (%)
Average number of 9.1 12.0 0.1 – 21.2
employees (thousands)1
1 Presented on a full-time employee equivalent basis.
External revenue by location of contribution and by location of customer
External revenue External revenue
by location of contribution by location of customer
€ million 2025 2024 2025 2024
Western Europe
Austria 1,179 1,175 159 166
Germany 810 555 1,121 932
UK 22 3 231 196
Rest of Western Europe 787 721 1,768 1,620
Western Europe total 2,798 2,454 3,279 2,914
Emerging Europe
Czech Republic 760 705 260 264
Poland 1,418 1,347 716 729
Turkiye 410 490 451 533
Rest of emerging Europe 854 919 533 543
Emerging Europe total 3,442 3,461 1,960 2,069
Africa
South Africa 567 667 413 489
Rest of Africa 70 80 343 366
Africa total 637 747 756 855
North America 674 648 888 850
South America 9 7 138 93
Asia and Australia 103 99 642 635
Total Group revenue 7,663 7,416 7,663 7,416
4 Special items
The Group separately discloses special items, an APM as defined at the end of
this document, on the face of the condensed consolidated income statement to
assist its stakeholders in understanding the underlying financial performance
achieved by the Group on a basis that is comparable from year to year.
€million 2025 2024
Operating special items
Impairment of assets (59) (74)
Restructuring and closure costs:
Personnel costs (19) (18)
Other restructuring and closure (4) (40)
costs
Costs relating to the acquisition (24) (5)
of Schumacher Packaging
Costs relating to the aborted all – (13)
-share combination with DS Smith
plc
Total special items before tax (106) (150)
Tax credit (see note 6) 19 1
Total special items (87) (149)
Attributable to:
Non-controlling interests (3) –
Shareholders (84) (149)
In line with the Group’s ongoing commitment to improving productivity, enhancing
its cost advantage and ensuring a future-fit network, the Group has taken action
to optimise its converting plant network and streamline overhead costs. Actions
include the initiation of plant closures in Corrugated Packaging, where the
Group has announced the closure of a corrugated solutions plant within its
Turkish network, and in Flexible Packaging, where the Group has announced plans
to close paper bags plants in Hungary and Germany, with customers being
transitioned to larger, more efficient plants nearby. Alongside the plant
closures, the Group has intensified its focus on cost discipline and proactively
managing workforce by reducing headcount across its business units and corporate
functions. In doing so, the Group naturally ensures compliance with applicable
local legal requirements and, where required under local law, the Group carries
out the appropriate information and/or consultation procedures with employee
representative bodies. Additionally, the Group has impaired assets in emerging
Europe, including in Turkiye where economic and inflationary pressures are
impacting profitability.
This gave rise to €18million of restructuring and closure costs, and €57million
of impairment charges. The total charge has been allocated between the two
business units, with €43million attributable to Corrugated Packaging (thereof
impairment of assets of €29million) and €32million to Flexible Packaging
(thereof impairment of assets of €28million). The Group expects additional costs
associated with the Group’s ongoing restructuring and optimisation measures to
be incurred in 2026.
In addition to the above, further special items were recognised in 2025 in
relation to actions that took place in 2024 as set out below.
– Corrugated Packaging:
– Transaction costs of €24million were recognised in 2025 in relation to
the acquisition of the Western Europe Packaging Assets of Schumacher Packaging.
Total costs were €29 million, of which €5 million was recognised in the second
half of 2024 (see note 12).
– Flexible Packaging:
– A paper bags plant in Maastricht (Netherlands) was closed in 2024. A
release of restructuring and closure provisions of €1million was recognised in
2025. Including the €13 million recognised in 2024, total costs related to the
closure amounted to €12 million.
– A paper bags plant in Pine Bluff (USA) was closed in 2024, with
€5million of restructuring and closures costs recognised in 2025, in addition to
the €9 million recognised in 2024, bringing total costs related to the closure
to €14 million.
– Following the fire at the Stambolijski paper mill (Bulgaria) in
September 2024, restructuring and closure costs of €1million and asset
impairments of €2million were recognised in 2025. This is in addition to the
€37 million of restructuring and closure costs and €73 million of asset
impairments recognised in 2024. In total, costs related to the closure amounted
to €113 million.
The operating special items resulted in a cash outflow from operating activities
of €47million for the year ended 31December 2025 (2024: €34million).
5 Write-down of inventories to net realisable value
€million 2025 2024
Within materials, energy and consumables used
Write-down of inventories to net realisable value (61) (69)
Aggregate reversal of previous write-downs of inventories 52 49
6 Taxation
The Group’s effective rate of tax before special items for the year ended
31December 2025 was 24% (2024: 22%).
€million 2025 2024
UK corporation tax at 25% (2024: 25%) 2 4
Overseas tax 86 105
Current tax in respect of the prior years (1) (4)
Current tax 87 105
Deferred tax in respect of the current year 20 10
Deferred tax in respect of the prior years (14) (5)
Deferred tax attributabletoachangeinthe rateofdomesticincometax (2) 7
Tax charge before special items 91 117
Current tax on special items (3) –
Deferred tax on special items (16) (1)
Tax credit on special items (see note 4) (19) (1)
Tax charge for the year 72 116
Current tax charge 84 105
Deferred tax (credit)/charge (12) 11
As the Group operates in a number of countries, each with different tax systems,
a degree of tax risk is inevitable, as tax laws are complex and subject to
changes in legislation and to differing interpretations. Consequently, provision
has been made for such tax risk exposures within current tax liabilities of
€38million (2024: €40million), mainly in relation to transfer pricing risks
arising from cross-border transactions. There is not expected to be any material
change to the tax risk exposures or associated provisions within the next
12months.
7 Earnings per share (EPS)
EPS attributable to shareholders
euro cents 2025 2024
Basic EPS 37.4 49.1
Diluted EPS 37.4 49.1
Basic underlying EPS 56.5 82.7
Diluted underlying EPS 56.5 82.6
Basic headline EPS 48.1 60.8
Diluted headline EPS 48.1 60.8
The calculation of basic and diluted EPS, basic and diluted underlying EPS and
basic and diluted headline EPS is based on the following data:
Earnings
€million 2025 2024
Profit for the year attributable to 165 218
shareholders
Special items attributable to 103 150
shareholders (see note 4)
Related tax (see note 4) (19) (1)
Underlying earnings 249 367
Net gain on disposal of property, plant (2) (12)
and equipment
Insurance reimbursements for property (1) (3)
damages
Restructuring and closure costs (see note (23) (58)
4)
Costs relating to the aborted all-share – (13)
combination with DS Smith plc (see note
4)
Costs relating to the acquisition of (24) (5)
Schumacher Packaging (see note 4)
Gain on purchase of business before – (13)
transaction-related costs
Impairments not included in special items 1 –
Loss arising from sale and leaseback – 3
transaction
Related tax 12 4
Headline earnings for the year 212 270
Underlying earnings and headline earnings represent APMs which are defined at
the end of this document.
Weighted average number of shares
million 2025 2024
Basic number of ordinary shares outstanding 440.8 444.0
Effect of dilutive potential ordinary shares – 0.1
Diluted number of ordinary shares outstanding 440.8 444.1
The weighted average number of shares was prospectively adjusted from 13
February 2024 to reflect the share consolidation and special dividend following
the sale of the Group’s Russian assets, which together were accounted for as a
share repurchase at fair value, as described in note 9 of the Group’s Integrated
report and financial statements 2024.
8 Dividends
An interim dividend for the year ended 31December 2025 of 23.33 euro cents per
ordinary share was paid on Friday 26September2025 to those shareholders on the
register of Mondi plc on Friday 22August2025.
A proposed final dividend for the year ended 31December 2025 of 4.92 euro cents
per ordinary share will be paid on Thursday 7May 2026 to those shareholders on
the register of Mondi plc on Friday 27 March 2026.
The final ordinary dividend proposed has been recommended by the Board and is
subject to shareholder approval at the Annual General Meeting scheduled for
Friday 24 April 2026.
2025 2024
euro €million euro €million
cents cents
pershare pershare
Final ordinary dividend paid 46.67 202 46.67 209
in respect of the prior year
Special dividend – – 160.00 769
Interim ordinary dividend paid 23.33 103 23.33 103
in respect of the current year
Total ordinary and special 305 1,081
dividends paid
Final ordinary dividend 4.92 22 46.67 206
proposed to shareholders
On 13 February 2024, the Group returned the net proceeds from the sale of the
Group’s Russian assets to shareholders by way of a special dividend of €1.60 per
ordinary share.
Dividend timetable
The proposed final dividend for the year ended 31December 2025 of 4.92 euro
cents pershare will be paid in accordance with the following timetable:
Last date to trade shares cum-dividend
JSE Limited Tuesday 24 March 2026
London Stock Exchange Wednesday 25 March 2026
Shares commence trading ex-dividend
JSE Limited Wednesday 25March 2026
London Stock Exchange Thursday 26 March 2026
Record date Friday 27 March 2026
Last date for receipt of Dividend Reinvestment Plan Thursday 2 April 2026
(DRIP) elections by Central Securities Depository
Participants
Last date for DRIP elections to UK Registrar and
South African Transfer Secretaries
South African Register Tuesday 7 April 2026
UK Register Thursday 16 April 2026
Annual General Meeting Friday 24 April 20261
Payment date Thursday 7May 2026
DRIP purchase settlement date (subject to market
conditions and the purchase of shares in the open
market)
UK Register Monday 11 May 2026
South African Register Wednesday 13 May 2026
DRIP results announcement Thursday 21 May 2026
Currency conversion date
ZAR/euro Thursday 19 February 2026
Euro/sterling Tuesday 21 April 2026
1Results of the Annual General Meeting to be held are expected to be released on
or around Friday 24 April 2026.
Share certificates on Mondi plc’s South African register may not be
dematerialised or rematerialised between Wednesday 25March 2026 and Friday 27
March 2026, both dates inclusive, nor may transfers between the UK and South
African registers of Mondi plc take place between Wednesday 18 March 2026 and
Friday 27 March 2026, both dates inclusive.
Information relating to the dividend tax to be withheld from Mondi plc
shareholders on the South African branch register will be announced separately,
together with the ZAR/euro exchange rate to be applied, on or shortly after
Thursday 19 February 2026.
9 Forestry assets
€million 2025 2024
At 1 January 503 519
Investment in forestry assets 50 48
Fair value gains 39 7
Disposal of assets (1) –
Felling costs (85) (92)
Currency movements 5 21
At 31December 511 503
Mature 392 371
Immature 119 132
The fair value of forestry assets is a level 3 measure in terms of the fair
value measurement hierarchy (see note 16), consistent with prior years. The fair
value of forestry assets is determined using a market based approach.
10 Borrowings
The primary sources of the Group’s liquidity include its €3 billion Guaranteed
Euro Medium Term Note Programme, its €1 billion Syndicated Revolving Credit
Facility (RCF), and financing from various banks andother credit agencies, thus
providing the Group with access todiverse sources of debt financing.
The principal loan arrangements in place are the following:
€million Maturity Interest rate % 2025 2024
Financing
facilities
Syndicated June 2028 EURIBOR + margin 1,000 750
Revolving Credit
Facility1
€600 million April 2026 1.625% 279 600
Eurobond
€750 million April 2028 2.375% 750 750
Eurobond
€550 million May 2031 3.375% 550 –
Eurobond
€500 million May 2032 3.750% 500 500
Eurobond
€600 million May 2033 3.750% 600 –
Eurobond
Long-Term Facility December Various 20 13
Agreement 2026-June
2031
Total committed 3,699 2,613
facilities
Drawn (2,699) (1,863)
Total committed 1,000 750
facilities
available
1 Increased from €750 million to €1 billion on 2 January 2025.
The Group’s Eurobonds incur a fixed rate of interest. Foreign exchange swap
agreements are utilised by the Group to raise non-euro-denominated currency to
fund subsidiaries’ liquidity needs, thereby exposing the Group to floating
interest rates.
The RCF incorporates key sustainability targets linked to MAP2030, classifying
the facility as a Sustainability-Linked Loan. Under the terms of the agreement,
the margin is adjusted according to the Group’s performance against specified
sustainability targets.
In March 2025, the Group issued a €600 million 8-year Eurobond maturing in May
2033 at a coupon of 3.750% per annum. In October 2025, the Group issued a €550
million 5-year Eurobond maturing in May 2031 at a coupon of 3.375% per annum.
Both Eurobonds were issued under the Group’s Guaranteed Euro Medium Term Note
Programme, and the proceeds were used for general corporate purposes and
refinancing of existing indebtedness. In October 2025, following a tender offer,
the Group repaid €321 million of the €600 million Eurobond maturing in April
2026.
Short-term liquidity needs are met by cash and the RCF. As at 31December 2025,
the Group had no financial covenants in any of its financing facilities.
The Group currently has investment grade credit ratings from both Moody’s
Investors Service (Baa1, outlook negative) and Standard & Poor’s (BBB, outlook
stable).
2025 2024
€million Current Non-current Total Current Non-current Total
Secured
Lease 39 145 184 24 104 128
liabilities
Total 39 145 184 24 104 128
secured
Unsecured
Bonds 279 2,384 2,663 – 1,842 1,842
Bank loans 26 9 35 39 6 45
and
overdrafts
Total 305 2,393 2,698 39 1,848 1,887
unsecured
Total 344 2,538 2,882 63 1,952 2,015
borrowings
11 Retirement benefits
All assumptions related to the Group’s defined benefit schemes and post
-retirement medical plan liabilities were re-assessed individually for the year
ended 31December 2025. The net retirement benefits liability decreased by €10
million, primarily due to changes in assumptions and exchange rate movements.
The net retirement benefits asset decreased by €3 million following the
completion of a buy-out of the Group’s largest UK pension scheme in 2025. The
assets backing the defined benefit scheme liabilities reflect their market
values as at 31December 2025. Net remeasurement gains arising from changes in
assumptions and return on plan assets, after tax, amounting to €6 million have
been recognised in the condensed consolidated statement of comprehensive income.
12 Business combinations
To 31December 2025
On 31 March 2025, the Group completed the acquisition of Schumacher Packaging’s
Western Europe Packaging Assets (Schumacher) for a total cash consideration of
€506 million.
The acquisition complements Mondi’s Corrugated Packaging operations in Europe by
expanding its geographic reach in Western Europe. It provides strong integration
benefits with Mondi’s containerboard operations and includes two state-of-the
-art mega-box plants in Germany, securing significant capacity for Mondi to
continue to meet growing demand for sustainable packaging.
Since the date of acquisition, Schumacher has contributed €292million of revenue
and incurred a loss after tax of €29million, which are included in the Group’s
condensed consolidated income statement. Had the acquisition been completed on 1
January 2025, the Group’s consolidated revenue and profit after tax for year
ended 31December 2025 (after special items) would have been €7,770million and
€197million, respectively.
The Group incurred total transaction costs of €29 million, of which €24million
was recognised in 2025 and €5 million in the second half of 2024. The
transaction costs were treated as a special item and recorded within other net
operating expenses in the condensed consolidated income statement (see note 4).
Details of the net assets acquired, as adjusted from book to fair value, are as
follows:
€million Fair value
Net assets acquired
Property, plant and equipment 375
Intangible assets 43
Inventories 47
Trade and other receivables 62
Cash and cash equivalents 10
Assets held for sale 1
Total assets 538
Trade and other payables (50)
Income tax liabilities (1)
Deferred tax liabilities (10)
Other provisions (1)
Total liabilities (62)
Short-term borrowings (72)
Medium- and long-term borrowings (41)
Debt assumed (113)
Net assets acquired 363
Goodwill arising on acquisition 129
Purchase price adjustment receivable 14
Cash acquired net of overdrafts (10)
Net cash paid per consolidated statement of cash flows 496
The acquisition included several legal entities and was executed through a
combination of share and asset deals. The acquisition constitutes a business
accounted for under IFRS 3, ‘Business Combinations’. The share deals involved
100% of the voting equity interests in the entities with the exception of a few
entities with immaterial non-controlling interests. The non-controlling
interests for these entities were recognised as the proportion of the fair
values of the assets and liabilities recognised at acquisition.
The fair values of assets acquired and liabilities assumed in business
combinations are level 3 measures in terms of the fair value measurement
hierarchy. The assets were measured at fair value using relevant valuation
methods accepted under IFRS 13, ‘Fair Value Measurement’, with related deferred
tax adjustments.
Property, plant and equipment were measured using valuation techniques
appropriate to each asset class. Land was valued using the market approach,
which reflects current market prices for comparable properties. Buildings were
assessed using the income approach, based on the present value of expected
future cash flows attributable to these assets. Equipment was measured using the
cost approach, which considers the replacement cost of a similar asset, adjusted
for depreciation, physical deterioration and economic obsolescence. Management
has considered the impact of environmental and climate risks on the estimated
fair values of the acquired property, plant and equipment and concluded that
these factors did not have a material impact.
Intangible assets, primarily customer relationships, were measured using the
multi-period excess earnings method. This approach estimates fair value by
projecting future cash flows attributable to the asset and deducting charges for
contributory assets required to support those cash flows. The valuation
incorporates key assumptions regarding revenue growth, EBITDA margins, customer
attrition rates, discount rates, expected future tax obligations and
contributory asset charges.
The purchase price adjustment receivable of €14 million, which is recognised in
other receivables, relates to the finalisation of the purchase price and was
settled in February 2026. The adjustment is based on the closing accounts
prepared in accordance with the sale and purchase agreement, reflecting the
actual cash, debt and working capital positions as of 31 March 2025.
On this basis, goodwill of €129 million was determined based on the fair values
of the net assets acquired and was fully allocated to the Corrugated Packaging
operating segment. The goodwill is attributable to identified cost synergies, a
broad range of capabilities in production and associated services, and the
expansion of the product range and geographic reach of the Group’s Corrugated
Packaging business. The total amount of goodwill that is expected to be
deductible for tax purposes is €100 million.
To 31December 2024
On 5 February 2024, the Group announced the completion of the acquisition of
Hinton Pulp mill in Alberta (Canada) from West Fraser Timber Co. Ltd. Details of
this business combination were disclosed in note 26 of the Group’s Integrated
report and financial statements 2024.
13 Consolidated cash flow analysis
(a) Reconciliation of profit before tax to cash generated from operations
€million 2025 2024
Profit before tax 269 378
Depreciation and amortisation 503 443
Impairment of property, plant and 1 –
equipment (not included in special
items)
Share-based payments 10 9
Net cash flow effect of current and 59 116
prior year special items
Net finance costs 112 70
Net monetary loss arising from 9 5
hyperinflationary economies
Net loss from joint ventures 1 3
(Decrease)/increase in provisions (6) 13
Decrease in net retirement benefits (6) (8)
Net movement in working capital 83 (108)
Decrease/(increase) in inventories 51 (70)
Increase in operating receivables (55) (140)
Increase in operating payables 87 102
Fair value gains on forestry assets (39) (7)
Felling costs 85 92
Net gain on disposal of property, (2) (12)
plant and equipment
Insurance reimbursements for property (1) (13)
damages
Other adjustments (6) (11)
Cash generated from operations 1,072 970
(b) Cash and cash equivalents
€million 2025 2024
Cash and cash equivalents per condensed 292 278
consolidated statement of financial
position
Bank overdrafts included in short-term (1) (9)
borrowings
Cash and cash equivalents per condensed 291 269
consolidated statement of cash flows
The cash and cash equivalents of €292 million (2024: €278 million) include money
market funds of €84 million (2024: €50million) valued at fair value through
profit and loss, with the remaining balance carried at amortised cost with fair
values approximate to the carrying values presented.
The Group operates in certain countries where the existence of exchange controls
or access to hard currency may restrict the use of certain cash balances outside
of those countries. These restrictions are not expected to have any material
effect on the Group’s ability to meet its ongoing obligations.
(c) Movement in net debt
The Group’s net debt position is as follows:
€million Cash and Current Debt Debt Debt Total
financial due due -related net
cash asset within derivative
investments 1year1 after financial debt
equivalents 1year instruments
At 1 January 1,592 1 (559) (1,460) 7 (419)
2024
Cash flow (1,311) – 535 (496) 47
(1,225)
Cash movement in (1,311) – – – –
(1,311)
the year
Proceeds from – – – (496) – (496)
Eurobonds
Repayment of – – 500 – – 500
Eurobonds
Proceeds from – – (9) (215) – (224)
borrowings
Repayment of – – 18 215 – 233
borrowings
Repayment of – – 26 – – 26
lease
liabilities
Net cash outflow – – – – 47 47
from debt
-related
derivative
financial
instruments
Additions to – – (11) (19) – (30)
lease
liabilities
Disposal of – – – 2 – 2
lease
liabilities
Movement in – – – (2) – (2)
unamortised loan
costs
Net movement in – – – – (49) (49)
fair value of
derivative
financial
instruments
Reclassification – – (25) 25 – –
Currency (12) (1) 6 (2) – (9)
movements
At 31December 269 – (54) (1,952) 5
(1,732)
2024
Cash flow 30 – 423 (1,150) 66 (631)
Cash movement in 30 – – – – 30
the year
Proceeds from – – – (1,139) –
(1,139)
Eurobonds
Repayment of – – 321 – – 321
Eurobonds
Proceeds from – – (11) (307) – (318)
borrowings
Repayment of – – 77 296 – 373
borrowings
Repayment of – – 36 – – 36
lease
liabilities
Net cash outflow – – – – 66 66
from debt
-related
derivative
financial
instruments
Additions to – – (10) (39) – (49)
lease
liabilities
Disposal of – – 3 4 – 7
lease
liabilities
Acquisitions – – (72) (41) – (113)
excluding cash
and
overdrafts
(seenote12)
Movement in – – – (3) – (3)
unamortised loan
costs
Net movement in – – – – (80) (80)
fair value of
derivative
financial
instruments
Reclassification – – (642) 642 – –
Currency (8) – 9 1 – 2
movements
At 31December 291 – (343) (2,538) (9)
(2,599)
2025
1€1 million (2024: €9 million) of bank overdrafts are included in cash and cash
equivalents for presentation in the condensed consolidated statement of cash
flows (see note 13b), but are included in short-term borrowings in the condensed
consolidated statement of financial position.
The Group incurred interest expense of €130 million (2024: €107 million) in
relation to bank overdrafts, loans and lease liabilities. Included in this
expense is €39 million (2024: €35 million) relating to forward exchange rates on
derivative contracts and interest paid on borrowings of €56 million (2024: €44
million).
14 Capital commitments
As at 31December 2025, capital expenditure contracted for at the end of the
financial year but not recognised as liabilities is €297 million (2024: €372
million).
15 Contingent liabilities
The Group’s contingent liabilities as at 31December 2025 were €nil (2024: €nil).
No acquired contingent liabilities have been recorded in the Group’s condensed
consolidated statement of financial position for either year presented.
16 Fair value measurement
Assets and liabilities that are measured at fair value, or where the fair value
of financial instruments has been disclosed in the notes to the condensed
consolidated financial statements, are based on the following fair value
measurement hierarchy:
· Level 1 – quoted prices (unadjusted) in active markets for identical assets
or liabilities
· Level 2 – inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly (that is, as prices) or
indirectly (that is, derived from prices)
· Level 3 – inputs for the asset or liability that are not based on
observable market data (that is, unobservable inputs)
The assets measured at fair value using level 3 inputs are the Group’s forestry
assets, as detailed in note 9, and certain assets acquired or liabilities
assumed in a business combination, as detailed in note 12.
There have been no transfers of assets or liabilities between levels of the fair
value hierarchy during the year.
The fair values of financial instruments that are not traded in an active market
(for example, over-the-counter derivatives) require estimation and judgement and
are determined using generally accepted valuation techniques. These valuation
techniques maximise the use of observable market data and rely as little as
possible on Group-specific estimates.
Specific valuation methodologies used to value financial instruments include the
following:
· The fair values of foreign exchange contracts are calculated as the present
value of expected future cash flows based on observable yield curves and
exchange rates.
· The fair values of the Group’s commodity price derivatives are calculated
as the present value of expected future cash flows based on observable market
data.
· Other techniques, including discounted cash flow analysis, are used to
determine the fair values of other financial instruments.
Except as detailed below, the carrying values of financial instruments at
amortised cost as presented in the condensed consolidated financial statements
approximate their fair values.
Carrying amount Fair value
€million 2025 2024 2025 2024
Financial liabilities
Borrowings 2,882 2,015 2,868 2,010
17 Related party transactions
The Group and its subsidiaries, in the ordinary course of business, enter into
various sale, purchase and service transactions with associated undertakings in
which the Group has a material interest. All related party transactions are
conducted on an arm’s length basis. These transactions, in total, are not
considered to be significant. Transactions between Mondi plc and its
subsidiaries, as well as transactions between subsidiaries, are eliminated on
consolidation. There have been no significant changes to related parties as
disclosed in note 32 of the Group’s annual financial statements for the year
ended 31December 2024.
18 Events occurring after 31December 2025
Aside from the final ordinary dividend proposed for 2025 (see note 8), there
have been no material reportable events since 31December 2025.
Production statistics
2025 2024
Containerboard 000 tonnes 2,631 2,345
Kraft paper 000 tonnes 1,257 1,233
Uncoated fine paper 000 tonnes 917 938
Pulp 000 tonnes 3,775 3,725
Internal consumption 000 tonnes 3,118 3,044
Market pulp 000 tonnes 657 681
Corrugated solutions million m2 2,419 1,899
Paper bags million units 5,903 5,583
Consumer flexibles million m2 1,768 1,912
Functional paper and films million m2 2,960 3,067
Exchange rates
Average Closing
Versus euro 2025 2024 2025 2024
South African rand (ZAR) 20.18 19.83 19.44 19.62
Czech koruna (CZK) 24.69 25.12 24.24 25.19
Polish zloty (PLN) 4.24 4.31 4.22 4.28
Pound sterling (GBP) 0.86 0.85 0.87 0.83
Turkish lira (TRY)1 44.82 35.57 50.48 36.74
US dollar (USD) 1.13 1.08 1.18 1.04
1The Group has applied hyperinflation accounting for its subsidiaries in
Turkiye.
Alternative Performance Measures
The Group presents certain measures of financial performance and position in the
condensed consolidated financial statements that are not defined or specified
according to IFRS Accounting Standards in order to provide additional
performance-related measures to its stakeholders. These measures, referred to as
Alternative Performance Measures (APMs), areprepared on a consistent basis for
all periods presented in this report.
By their nature, the APMs used by the Group are not necessarily uniformly
applied by peer companies and therefore may not be comparable with similarly
defined measures and disclosures applied by other companies. Such measures
should not be viewed in isolation or as a substitute to the equivalent IFRS
Accounting Standards measure.
Internally, the Group and its operating segments apply the same APMs in a
consistent manner in planning and reporting on performance to management, the
Executive Committee and the Board. Two of the Group’s APMs, underlying EBITDA
and ROCE, link to the Group’s strategy and form part of the executive directors’
and senior management’s remuneration targets.
The most significant APMs used by the Group are described below, together with a
reconciliation to the equivalent IFRS Accounting Standards measure.
Thereconciliations are based on Group figures. Thereporting segment equivalent
APMs are measured in a consistent manner.
APM description Financial statement Closest IFRS equivalent measure
and purpose reference
Special items
Special items are Note 4 None
generally
material, non
-recurring items
that exceed
€10million. The
Audit Committee
regularly
assesses the
monetary
threshold of €10
million on a net
basis and
considers the
threshold in the
context of both
the Group as a
whole and
individual
operating segment
performance.
The Group
separately
discloses special
items on the face
of the condensed
consolidated
income statement
to assist its
stakeholders in
understanding the
underlying
financial
performance
achieved by the
Group ona basis
that is
comparable
fromyeartoyear.
Examples of
special item
charges or
credits include,
but are not
limited to,
significant
restructuring
programmes,
impairment of
assets or cash
-generating
units, costs
associated with
potential and
achieved
acquisitions,
profits or losses
from the disposal
of businesses,
and the
settlement of
significant
litigation or
claims.
Subsequent
adjustments to
items previously
recognised as
special items,
including any
related credits
received
subsequently,
continue to be
reflected as
specialitems in
future periods
even if they do
not exceed the
quantitative
reporting
threshold.
Subsequent
adjustments to
items, or charges
and credits on
items that are
closely related,
which previously
did not qualify
for reporting as
special items,
continue to be
reported in the
underlying result
even if the
cumulative net
charge/credit
over the years
exceeds the €10
million
quantitative
reporting
threshold.
Underlying EBITDA
Operating profit Condensed Operating profit
before special consolidated income
items, statement
depreciation,
amortisation and
impairments not
recorded as
special items
provides a
measure of the
cash-generating
ability of the
Group’s
operations that
is comparable
from year to
year.
Underlying EBITDA
margin
Underlying EBITDA None
expressed as a
percentage of
Group revenue
(segment revenue
for operating
segments)
provides a
measure of the
cash-generating
ability of the
Group’s
operations
relative to
revenue.
APM calculation:
€million, unless 2025 2024
otherwise stated
Underlying EBITDA 1,001 1,049
(see condensed
consolidated
income statement)
Group revenue 7,663 7,416
(see condensed
consolidated
income statement)
Underlying EBITDA 13.1 14.1
margin (%)
Underlying
operating profit
Operating profit Condensed Operating profit
before special consolidated income
items provides a statement
measure of
operating
performance of
the Group that is
comparable from
year to year.
Underlying profit
before tax
Profit before tax Condensed Profit before tax
and special consolidated income
items. Underlying statement
profit before tax
provides a
measure of the
Group’s
profitability
before tax that
is comparable
from year to
year.
Effective tax
rate
Underlying tax None
charge expressed
as a percentage
of underlying
profit before
tax. The
underlying tax
charge represents
the Group’s tax
charge before
special items.
APM calculation:
€million, unless 2025 2024
otherwise stated
Tax charge before 91 117
special items
(see note 6)
Underlying profit 375 528
before tax (see
condensed
consolidated
income statement)
Effective tax 24 22
rate (%)
Underlying
earnings (and per
share measure)
Net profit after Note 7 Profit for the period attributable to
tax before shareholders (and per share measure)
special items
arising from the
Group’s
operations that
is attributable
to shareholders.
Underlying
earnings (and the
related per share
measure based on
the basic,
weighted average
number of
ordinary shares
outstanding)
provides a
measure of the
Group’s earnings.
Headline earnings
(and per share
measure)
The presentation Note 7 Profit for the period attributable to
of headline shareholders (and per share measure)
earnings (and the
related per share
measure based on
the basic,
weighted average
number of
ordinary shares
outstanding) is
mandated under
the Listings
Requirements of
the JSE Limited
and is calculated
in accordance
with Circular
1/2023, `Headline
Earnings’, as
issued by the
South African
Institute of
Chartered
Accountants.
Dividend cover
Basic underlying None
EPS divided by
total ordinary
dividend per
share paid
andproposed
provides a
measure of the
Group’s earnings
relative to
ordinary dividend
payments.
APM calculation:
euro cents, 2025 2024
unless otherwise
stated
Basic underlying 56.5 82.7
EPS (see note 7)
Total ordinary 28.25 70.00
dividend per
share (see note
8)
Dividend cover 2.0 1.2
(times)
Capital employed
(and related
trailing 12-month
average capital
employed)
Capital employed Note 3 Total equity
comprises total
equity and net
debt. Trailing 12
-month average
capital employed
isthe average
monthly capital
employed over the
last 12 months
adjusted for
spend on major
capital
expenditure
projects which
are not yet in
production.
These measures
provide the level
of invested
capital in the
business.
Trailing 12-month
average capital
employed is used
in the
calculation of
return on capital
employed.
Return on capital
employed (ROCE)
Trailing 12-month None
underlying
operating profit,
including share
of associates’
and joint
ventures’ net
profit/(loss),
divided by
trailing 12-month
average capital
employed. ROCE
provides a
measure of the
efficient and
effective use of
capital in the
business.
APM calculation:
€million, unless 2025 2024
otherwise stated
Underlying 497 606
operating profit
(see condensed
consolidated
income statement)
Underlying net (1) (3)
loss from joint
ventures (see
condensed
consolidated
income statement)
Underlying profit 496 603
from operations
and joint
ventures
Trailing 12-month 7,417 6,283
average capital
employed (see
note 3)
ROCE (%) 6.7 9.6
Net debt (and
related trailing
12-month average
net debt)
A measure Note 13c None
comprising short
-, medium- and
long-term
interest-bearing
borrowings and
the fair value
ofdebt-related
derivatives less
cash and cash
equivalents, net
of overdrafts,
and current
financial
assetinvestments.
Net debt provides
a measure of the
Group’s net
indebtedness or
overall leverage.
Trailing 12-month
average net debt
is the average
monthly net debt
over the last 12
months.
Net debt to
underlying EBITDA
Net debt divided None
by trailing 12
-month underlying
EBITDA. A measure
of the Group’s
net indebtedness
relative to its
cash-generating
ability.
APM calculation:
€million, unless 2025 2024
otherwise stated
Net debt (see 2,599 1,732
note 13c)
Underlying EBITDA 1,001 1,049
(see condensed
consolidated
income statement)
Net debt to 2.6 1.7
underlying EBITDA
(times)
Forward-looking statements
This document includes forward-looking statements. All statements other than
statements of historical facts included herein, including, without limitation,
those regarding Mondi’s financial position, business strategy, market growth and
developments, expectations of growth and profitability and plans and objectives
of management for future operations, are forward-looking statements. Forward
-looking statements are sometimes identified by the use of forward-looking
terminology such as «believe», «expects», «may», «will», «could», «should»,
«shall», «risk», «intends», «estimates», «aims», «plans», «predicts»,
«continues», «assumes», «positioned» or «anticipates» or the negative thereof,
other variations thereon or comparable terminology. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of Mondi, or
industry results, to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. Such forward-looking statements and other statements contained in
this document regarding matters that are not historical facts involve
predictions and are based on numerous assumptions regarding Mondi’s present and
future business strategies and the environment in which Mondi will operate in
the future. These forward-looking statements speak only as of the date on which
they are made.
No assurance can be given that such future results will be achieved; various
factors could cause actual future results, performance or events to differ
materially from those described in these statements. Such factors include in
particular but without any limitation: (1) operating factors, such as continued
success of manufacturing activities and the achievement of efficiencies therein,
continued success of product development plans and targets, changes in the
degree of protection created by Mondi’s patents and other intellectual property
rights and the availability of capital on acceptable terms; (2) industry
conditions, such as strength of product demand, intensity of competition,
prevailing and future global market prices for Mondi’s products and raw
materials and the pricing pressures thereto, financial condition of the
customers, suppliers and the competitors of Mondi and potential introduction of
competing products and technologies by competitors; and (3) general economic
conditions, such as rates of economic growth in Mondi’s principal geographical
markets or fluctuations of exchange rates and interest rates.
Mondi expressly disclaims a) any warranty or liability as to accuracy or
completeness of the information provided herein; and b) any obligation or
undertaking to review or confirm analysts’ expectations or estimates or to
update any forward-looking statements to reflect any change in Mondi’s
expectations or any events that occur or circumstances that arise after the date
of making any forward-looking statements, unless required to do so by applicable
law or any regulatory body applicable to Mondi, including the JSE Limited and
the LSE. Any reference to future financial performance included in this
announcement has not been reviewed or reported on by the Group’s auditors.
Editors’ notes
Mondi is a global leader in packaging and paper, contributing to a better world
by producing products that are sustainable by design. We employ 24,000 people in
more than 30 countries and operate an integrated business with expertise
spanning the entire value chain, enabling us to offer our customers a broad
range of innovative solutions for consumer and industrial end-use applications.
Sustainability is at the centre of our strategy, with our ambitious commitments
to 2030 focused on circular driven solutions, created by empowered people,
taking action on climate.
In 2025, Mondi had revenues of €7.7 billion and underlying EBITDA of €1.0
billion. Mondi is listed on the London Stock Exchange in the ESCC category
(MNDI), where the Group is a FTSE100 constituent. It also has a secondary
listing on the JSE Limited (MNP).
mondigroup.com
Sponsor in South Africa: J.P. Morgan Equities South Africa (Pty) Ltd
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