Mondi Plc Beats 2012 Profit Figures


The share price of Mondi (LSE: MNDI) increased by 14p to 1,049p during early trade this morning after the international packaging and paper group revealed that full-year underlying profit should be ahead of the level achieved in 2012.

Mondi is currently finalising its full-year results for the year ended 31 December but, in accordance with the listing requirements of the Johannesburg Stock Exchange, the group is required to release a statement as soon as they become certain that financial results will differ by at least 20% on the previous corresponding period.

In Mondi’s most recent trading statement in November, it reported profits of £444m for the first nine months of 2013, up from £338m the year before.

Mondi’s upcoming annual results are expected to reveal profits greater than the £473 achieved in 2012. It also expects earnings per share to come in around 64-68p compared with 41p a year earlier.

With a market cap of £3.7bn, and taking into account this morning’s price movemnet, shares in Mondi trade at 16 times earnings.

Analysts are expecting Mondi to reveal a dividend of 27p per share when its final results are announced. This equates to a potential income of 3%.

Of course, the decision to ‘buy’ — based on those ratings, today’s suprise results, and the wider prospects of the paper sector — is solely your own decision.

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> Mark does not own shares in Mondi.