Mondi plc (MNDI) Q2 2023 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, all, from my side. I'm Andrew King, your group CEO, and I'm joined here by Mike Powell, our CFO. I'll provide some highlights before passing on to Mike for an overview of our financial performance. I'll then give you an update on performance of each of our business units before wrapping up with an update on some of our key strategic initiatives. After that, Mike and I look forward to taking your questions. I'm pleased to report that we delivered a strong performance against the backdrop of what were very challenging trading conditions. Macroeconomic factors have resulted in a slowdown in demand, in turn pressurising margins and profitability relative to the very high levels achieved in 2022. While EBITDA is down, the resilience of the business is amply demonstrated by the still strong margins and returns achieved and our very strong cash generation of 554 million euros in the period, up from 519 million in the prior period. The commitment of our people, our diversified portfolio of sustainable products, strong vertical integration, and enviable cost competitiveness are what enable us to deliver strongly in these market conditions. Importantly, we are able to take a long-term view on investing in our portfolio thanks to the strong cash generation. of a robust balance sheet and the confidence we have in the structural growth offered by the markets we serve. We remain fully committed to our 1.2 billion euro expansion investment program and we're making good progress with all projects on track and within budget. I'm delighted that we could also open up a further growth option during the period by concluding an agreement to acquire the Hinton pulp mill in Canada. but it provides unity to build on our global leadership position in craft paper and bags. We con...