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Mondi reinstates final dividend, declares interim payout despite profits slide

The paper and packaging group also has a €2bn debt pile

Mondi PLC - Mondi resumes dividend despite profits slide

Mondi PLC (LON:MNDI) has resumed its dividend payments in line with policy despite half-year profits slipped 26%.

The paper and packaging group declared a final dividend of 29.75 euro cents per share for 2019, reinstating the payout after the 55.72 euro cents per share proposed with the final results in February was cancelled in April amid the pandemic.

READ: Mondi scoops up CFO from Ferguson

It also proposed an interim distribution of 19 euro cents per share for the six months to June.

Looking at the remainder of 2020, the firm said pricing across key pulp and paper grades is below or in line with the average of the first half, while demand for packaging daily essentials remains robust but there is weakness in certain industrial end-uses.

Uncoated fine paper order books have picked up from the lows seen in the second quarter but it will take a while before a recovery to pre-pandemic levels.

Revenue slipped 8%to €3.4bn in the six months to June 30, with profit before tax down 26% to €466mln. Net debt was 14% lower at €2bn.

Shares added 4% to 1,486p on Thursday morning.

Quick facts: Mondi PLC

Price: 1548 GBX

LSE:MNDI
Market: LSE
Market Cap: £7.52 billion
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