Wrap Text
Full year results for the year ended 31
December 2020
Mondi plc
(Incorporated in England and Wales)
(Registered number: 6209386)
LEI: 213800LOZA69QFDC9N34
LSE share code: MNDI ISIN: GB00B1CRLC47
JSE share code: MNP
25 February 2021
Full year results for the year ended 31 December 2020
Highlights
• Robust financial performance with excellent cash generation
- Underlying EBITDA of €1,353 million, with margin of 20.3%
- Cash generated from operations of €1,485 million
- Strong balance sheet at 1.3x net debt to underlying EBITDA
- Recommended full year dividend of 60.0 euro cents per share, up 5%
• Decisive and effective COVID-19 response
• Investing through-the-cycle with capital investment projects delivering growth, enhanced cost competitiveness
and sustainability benefits
• Delivered against our 2020 Growing Responsibly sustainability commitments and set new ones, the Mondi
Action Plan 2030 (MAP2030)
• Leveraging long-term trends of sustainability, e-commerce and enhancing our customers' brand value
• Well-positioned with cost-advantaged asset base, strong balance sheet and unique portfolio of sustainable
solutions
Financial summary
Year ended Year ended
31 December 31 December
€ million, except for percentages and per share measures 2020 2019 Change %
Group revenue 6,663 7,268 (8)
Underlying EBITDA1 1,353 1,658 (18)
Underlying operating profit1 925 1,223 (24)
Operating profit 868 1,221 (29)
Profit before tax 770 1,103 (30)
Per share measures
Basic underlying earnings per share1 (euro cents) 129.3 171.1 (24)
Basic earnings per share (euro cents) 120.0 167.6 (28)
Basic headline earnings per share1 (euro cents) 123.9 172.5 (28)
Total dividend per share (euro cents)2 60.0 57.0 5
Cash generated from operations 1,485 1,635 (9)
Net debt1 1,791 2,207
Underlying EBITDA margin1 20.3% 22.8%
Return on capital employed (ROCE)1 15.2% 19.8%
Notes:
1 The Group presents certain measures of financial performance, position or cash flows that are not defined or specified according to International Financial
Reporting Standards (IFRS). These measures, referred to as Alternative Performance Measures (APMs), are defined at the end of the full announcement and
where relevant, reconciled to IFRS measures in the notes to the condensed consolidated financial statements (see link to the full announcement below).
2 31 December 2019 column includes a dividend of 29.75 euro cents per share in relation to 2019 financial year paid as an interim 2020 dividend.
Andrew King, Mondi Group Chief Executive Officer, said:
"Mondi delivered a robust performance in 2020, with underlying EBITDA of €1,353 million, ROCE of 15.2% and continued
excellent cash generation. This is testament to the strength of our business model in the face of significantly lower
average selling prices across our key pulp and paper grades, and the challenges brought by COVID-19. We finished the
year positively, with strong demand in the packaging businesses supported by the long-term growth drivers of
sustainability and e-commerce.
I am extremely proud of how our teams rose to the challenges of 2020 and my sincere thanks go to my colleagues for
their endurance, enterprise and ongoing commitment. We took decisive action in the early stages of the pandemic,
moving quickly to safeguard our people, support our communities and customers, and protect the profitability, liquidity
and cash flow of the business while seeking to ensure we remain well placed to deliver value accretive growth into the
future.
We continue to make good progress on our sustainability journey. We delivered strongly against our 2020 Growing
Responsibly commitments and have now launched Mondi Action Plan 2030, our sustainability roadmap for the next 10
years.
Sustainable packaging continues to be a long-term priority for our customers and wider society. As a leading producer of
both paper and flexible plastic-based packaging, we continue to support our customers’ environmental goals with
packaging that is sustainable by design adhering to our principle of paper where possible, plastic when useful.
Our capital investment programme to generate value accretive growth, enhance our cost competitiveness and deliver
sustainability benefits is progressing well. In January 2021 we commissioned our investment in Steti (Czech Republic),
dedicated to producing speciality kraft paper for e-commerce and retail shopping bags. We also started up a new
300,000 tonne kraft top white machine at Ruzomberok (Slovakia) and we are moving forward with the previously
announced major capital investment projects at Syktyvkar (Russia) and Richards Bay (South Africa). Expansionary
projects are also underway at a number of our converting packaging operations, enhancing our production capabilities
and product offering to further support our customers. We continue to evaluate further opportunities for value accretive
growth and remain excited by the possibilities offered by our platform.
Looking ahead, although the near-term macroeconomic outlook continues to be uncertain, we remain confident in the
structural growth drivers in the packaging sectors in which we operate and the strength of our paper position. We are
seeing strong order books supporting price increases in most packaging and pulp grades, and are encouraged by the
improving uncoated fine paper demand. We are planning longer project-related maintenance shuts and are seeing input
cost pressures and currency headwinds, although the benefits from our capital expenditure programme will continue to
support our performance.
Underpinned by the Group's integrated cost-advantaged asset base, culture of continuous improvement, portfolio of
sustainable packaging solutions and the strategic flexibility offered by our strong cash generation and financial position,
the Group remains well-placed to deliver sustainably into the future."
Dividend
The Board aims to offer shareholders long-term ordinary dividend growth within a targeted dividend cover range of two to three
times on average over the cycle, although the payout ratio in each year may vary in accordance with the business cycle.
In April, at the height of the first wave of the pandemic, the Board took the difficult but prudent decision to withdraw the
recommendation to pay the 2019 final dividend, with a commitment to re-evaluate later in the year when the impact of the
pandemic became clearer. In August, having delivered a robust trading performance in the first half of the year and given our
resilient business model and strong financial position, the Board was pleased to resume the payment of dividends. The Board
declared a dividend of 29.75 euro cents per share relating to the 2019 financial year, bringing the total dividends paid relating to
2019 to 57.03 euro cents per share, in addition to a 2020 interim dividend of 19.00 euro cents per share.
Given our strong financial position and confidence in the future of the business, the Board has recommended a final 2020 dividend
of 41.00 euro cents per share. The final dividend, together with the interim dividend, amount to a total dividend for the year of
60.00 euro cents per share, an increase of 5% on the 2019 total dividend.
The final dividend is subject to the approval of the shareholders of Mondi plc at the Annual General Meeting scheduled for 6 May
2021 and, if approved, is payable on 13 May 2021 to shareholders on the register on 9 April 2021.
The proposed final dividend for the year ended 31 December 2020 of 41.00 euro cents per share will be paid in accordance with
the following timetable:
Last date to trade shares cum-dividend
JSE Limited Tuesday 6 April 2021
London Stock Exchange Wednesday 7 April 2021
Shares commence trading ex-dividend
JSE Limited Wednesday 7 April 2021
London Stock Exchange Thursday 8 April 2021
Record date Friday 9 April 2021
Last date for receipt of Dividend Reinvestment Plan (DRIP) elections by Central Securities
Depository Participants Thursday 15 April 2021
Last date for DRIP elections to UK Registrar and South African Transfer Secretaries
South African Register Friday 16 April 2021
UK Register Friday 23 April 2021
Payment Date Thursday 13 May 2021
DRIP purchase settlement dates (subject to market conditions and the purchase of shares
in the open market)
UK Register Monday 17 May 2021
South African Register Wednesday 19 May 2021
Currency conversion date
ZAR/euro Thursday 25 February 2021
Euro/sterling Tuesday 29 April 2021
Share certificates on Mondi plc’s South African register may not be dematerialised or rematerialised between Wednesday 7 April
2021 and Friday 9 April 2021, both dates inclusive, nor may transfers between the UK and South African registers of Mondi plc
take place between Wednesday 31 March 2021 and Friday 9 April 2021, 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 25 February 2021.
The dividend will be paid from distributable reserves. For further information please see the full announcement (link below).
Short form announcement
This short form announcement is the responsibility of the directors. It is only a summary of the information contained in the full
announcement and does not contain full or complete details.
Any investment decision should be based on the full announcement accessible from Thursday, 25 February 2021, via the JSE link
below and also available on our website at www.mondigroup.com/en/investors/results-and-reports.
The full announcement is available at our registered office and our sponsor’s office for inspection, at no charge, during office
hours. The full announcement is 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.
Copies of the full announcement may also be requested by email: Investor.Relations@mondigroup.com
The JSE link is as follows: https://senspdf.jse.co.za/documents/2021/jse/isse/MNP/FY2020.pdf
Enquiries
Investors/analysts:
Clara Valera +44 193 282 6357
Mondi Group Head of Strategy and Investor Relations
Media:
Kerry Cooper +44 788 145 5806
Mondi Group Head of External Communication
Richard Mountain (FTI Consulting) +44 790 968 4466
Conference call dial-in and audio webcast details
Please see below details of our dial-in conference call and audio webcast that will be held at 09:00 (UK) and 11:00 (SA) today.
The conference call dial-in numbers are:
UK 0800 279 6619
South Africa 0800 014 552
Other +44 2071 928338
Conference ID 5436419
An audio webcast will be available via https://www.mondigroup.com/en/investors/
A presentation will be available to download from the above website 30 minutes before the audio webcast commences. Questions
can be submitted via the dial-in conference call or via the audio webcast facility. If you wish to ask a question verbally, please
connect via the dial-in conference call.
Should you have any issues on the day with accessing the dial-in conference call, please call +44 2071 928338.
For queries regarding access to the audio webcast, please e-mail group.communication@mondigroup.com and you will be
contacted as soon as possible.
A recording of the presentation will be available on Mondi’s website during the afternoon of 25 February 2021.
Editors’ notes
Mondi is a global leader in packaging and paper, contributing to a better world by making innovative packaging and paper
solutions that are sustainable by design. Our business is integrated across the value chain – from managing forests and producing
pulp, paper and plastic films, to developing and manufacturing effective industrial and consumer packaging solutions.
Sustainability is at the centre of our strategy and intrinsic in the way we do business. We lead the industry with our customer-
centric approach, EcoSolutions, where we ask the right questions to find the most sustainable solution. In 2020, Mondi had
revenues of €6.66 billion and underlying EBITDA of €1.35 billion.
Mondi has a premium listing on the London Stock Exchange (MNDI), and a secondary listing on the JSE Limited (MNP). Mondi is
a FTSE 100 constituent, and has been included in the FTSE4Good Index Series since 2008 and the FTSE/JSE Responsible
Investment Index Series since 2007.
Sponsor in South Africa: UBS South Africa Proprietary Limited.
Date: 25-02-2021 09:00:00
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