Mondi warns of tough trading in H2 as earnings fall
Paper and packaging company Mondi Plc on Thursday warned that an uncertain economic environment would continue to impact trading in the second half of the year as it reported a fall in interim profits.
The South Africa-based firm posted pre-tax profit of €247m for the six months to June 30, down from €296 a year earlier. Underlying core earnings were flat at €564.
Mondi said volume growth, price increases and good cost control effectively mitigated currency headwinds and inflationary pressures.
It added that US tariffs had limited direct impact on operations, with only 2-3% revenue is generated from exports to America, although it remained aware of second order impacts affecting trade flows, consumer confidence and supply chains.
"We continued to make good progress on our key strategic initiatives. All our major capacity expansion projects are now operational and ramping up production and sales, and the integration of Schumacher is on track," said chief executive Andrew King.
"Looking ahead, ongoing geopolitical and macroeconomic uncertainties look set to continue impacting trading conditions into the second half of the year."
Reporting by Frank Prenesti for Sharecast.com
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