Mondi PLC (LSE:MNDI) shares dropped on Thursday as it warned that it continues to see softer demand and pricing, despite input costs declining as it reported full-year 2022 profits that more than doubled on higher prices.
The FTSE 100-listed paper and packaging group posted a 119% jump in pre-tax profit before tax to €1.56bn for the year ended 31 December 2022, as revenue excluding Russian operations surged by 28% to €9bn.
However, looking ahead, the company said: "As we enter 2023, significant geopolitical and macro-economic uncertainties remain. Whilst a number of input costs are starting to decline, we continue to see an environment of softer demand and pricing, with destocking expected to continue through the first quarter.
"Notwithstanding these challenges, we remain confident of our compelling product portfolio and resilient business model. Our cash generation and strong balance sheet provide strategic flexibility, enabling us to meet growing customer demand for sustainable products and continue to invest to strengthen our leading market positions," Mondi added in its outlook statement with the annual results.
In early morning trade in London, Mondi shares were down 6.9% at 1,375.50p.