Mondi plc
(Incorporated in England and Wales) ISIN: GB00BMWC6P49
(Registered number: 6209386)LSE share code: MNDI
LEI: 213800LOZA69QFDC9N34 JSE share code: MNP
30 July 2026
Strengthening our competitive advantage through disciplined execution
Mondi, a global leader in the production of sustainable packaging and paper,
today announces results for the six months ended 30June2026 ("first half" or "H1
2026").
Key points
· H1 2026 underlying EBITDA of €379million, including a forestry fair
value loss of €35 million (H1 2025: €564million including a fair value gain of
€18million)
- Margin pressure from higher input costs and lower average selling prices
partially offset by higher sales volumes and pricing actions
· Basic underlying earnings of 11.6 euro cents per share (H1 2025: 42.7
euro cents per share)
· Cash generated from operations of €347million supported by a strong
focus on working capital management (H1 2025: €416million)
· Disciplined capital allocation reduces expected full year 2026
capital expenditure to around €500 million (previously €550 million)
· Good progress on converting plant network optimisation, with six
plants closed or in process of closure
· Special items pre-tax charge of €320 million for impairments and
restructuring, of which the expected cash effect is €24 million
· An interim ordinary dividend of 9.42 euro cents per share has been
declared (H1 2025: 23.33 euro cents per share)
Andrew King, Mondi Group Chief Executive Officer, commented:
"During the first half of 2026, we made good progress in delivering actions to
strengthen Mondi's performance, cash generation and competitiveness, supported
by the strength of our quality product offering, high service levels and the
agility and commitment of our people. We took strong pricing actions, maintained
cost discipline, progressed our plant network optimisation programme and
continued to drive operational excellence across the business.
"Heightened geopolitical tensions in the Middle East caused supply chain
disruptions and contributed to higher input costs. Our teams acted quickly to
protect operational continuity, support customers and implement price increases
across our packaging and paper products.
"Trading momentum improved through the first half and we enter the second half
with higher packaging paper prices, supported by good order books. We expect
higher wood costs across Central and Eastern Europe and we continue to manage
volatile energy related input costs.
"As major expansionary investments are now largely complete, our focus is on
disciplined commercial execution to deliver growth, while relentlessly
identifying and executing further opportunities to strengthen Mondi's cost
competitiveness. We remain confident in the structural growth drivers that
underpin our sustainable packaging businesses. Combined with our innovative
packaging and paper solutions, our cost-advantaged, integrated assets and our
commitment to continuous improvement, Mondi is well positioned to deliver long
-term value for shareholders."
Financial Summary
€million, except where noted Six months Six months Six months ended
ended ended 31December 2025
30June2026 30June2025
Group revenue 3,975 3,909 3,754
Underlying EBITDA1 379 564 437
Forestry fair value (35) 18 21
(loss)/gain
Underlying EBITDA excluding 414 546 416
forestry fair value
(loss)/gain
Underlying EBITDA margin1 9.5% 14.4% 11.6%
Underlying profit before tax1 80 272 103
(Loss)/Profit before tax (240) 247 22
Basic underlying earnings per 11.6 42.7 13.8
share (euro cents)1
Basic earnings per share (57.8) 38.6 (1.2)
(euro cents)
Interim dividend per share 9.42 23.33
(euro cents)
Cash generated from 347 416 656
operations
Net debt to underlying EBITDA 3.2 2.5 2.6
(times)1
Return on capital employed 4.0% 8.4% 6.7%
(ROCE)1
1The Group presents certain measures that are not defined or specified according
to International Financial Reporting Standards. Refer to the Alternative
Performance Measures section at the end of this document for further detail.
Enquiries
Investors/analysts:
Fiona Lawrence+44 742 587 8683
Mondi Group: Head of Investor Relations
Media:
Kerry Cooper+44 788 145 5806
Mondi Group: Group Communication Director
Richard Mountain+44 790 968 4466
FTI Consulting
Results presentation details
A webinar will be held today at 08:30 (BST), 09:30 (CET/SAST).
Event registration link: https://storm-virtual
-uk.zoom.us/webinar/register/WN_FqPuJFuPQK2QFrhu4IwIuA
Once registered, you will receive a confirmation email from `Mondi Group Events'
with the webinar link and ID.
A replay will be available on our website within a couple of hours after the end
of the live results presentation
at: https://www.mondigroup.com/investors/results-reports-and-presentations/
For any queries, please e-mail ir@mondigroup.com.
Strengthening performance, cash generation and competitiveness
We have made good progress on our broad programme of operational and financial
actions to strengthen performance, cash generation and competitiveness. These
included plant network optimisation, workforce reductions, productivity
improvements, working capital management, extended debt maturities and
disciplined capital allocation. Together, these measures will support long-term
value creation.
1. Optimising our converting plant network to deliver efficiency gains
We continue to optimise our converting plant network to strengthen productivity,
improve returns and create a more scalable platform for future growth. Following
the three converting plant closures announced with the 2025 results, we
announced a further three closures in April, bringing the total number of
recently announced closures to six across corrugated and flexible packaging.
While these were profitable, alternative plants within our network offer greater
scale, stronger growth opportunities and the ability to serve customers more
effectively. By concentrating volumes in these locations, we can improve asset
utilisation, reduce complexity and further strengthen our competitive position.
Two of these converting plants have now closed, with customer volumes from our
paper bag plants in Hungary and Germany successfully transferred to alternative
plants in our network. The remaining four converting plant closures: one
corrugated solutions plant in each of Germany, Poland and Turkiye and the
consumer flexibles plant in Hungary, are expected to be completed by year end,
with customer transfers progressing well. In total, the six converting plant
closures are expected to reduce headcount by approximately 580 roles by year
end, with around 800 customers transferred and 30 items of large production
equipment relocated across the network. These actions demonstrate the scale of
our network optimisation programme and our ability to execute complex
restructuring initiatives while maintaining service continuity, strengthening
our cost base and positioning the business for long-term growth.
2. Controlling fixed costs and simplifying the organisation
Cost discipline remains a key priority as we mitigate inflationary pressures,
support growth in core revenue-generating areas such as eCommerce, and maintain
tight control of our fixed cost base. We have progressed targeted cost-out
initiatives maintaining tight control of maintenance and overheads. We have
streamlined organisational structures through the combination of Corrugated
Packaging and Uncoated Fine Paper and completed the reduction in headcount in
our Group Services offices by 13% (headcount reduction of approximately 70).
The Schumacher assets have been integrated into our Corrugated Solutions
network, and we remain on track to deliver €32 million of cost synergies over
the three years from completion.
3. Driving operational excellence to improve productivity
With some of the most productive and lowest-cost pulp and paper mills in Europe,
Mondi already benefits from strong cost leadership. Driving operational
excellence to the next level will further strengthen this competitive advantage,
helping us unlock additional value from our existing asset base through higher
productivity, improved reliability and more efficient ways of working.
During the first half of 2026, we rolled out our new operational excellence
programme, Mondi Management Systems (MMS) across the mill network and began
extending it into our converting operations, driving a zero-loss productivity
mindset and a disciplined, systematic way of operating. These programmes focus
on eliminating losses, improving asset reliability, increasing productivity,
enhancing energy efficiency and strengthening right-first-time performance.
Building on the successful pilots launched last year, we are already seeing
encouraging results. Early adopter sites have reduced unplanned downtime and
improved operating efficiency, demonstrating the potential to drive further
productivity and performance from our existing asset base. As the programme is
expanded across the business, we expect to realise further gains in productivity
and cost competitiveness, supporting long-term value creation.
4. Enhancing cash generation and capital discipline
With major capacity expansion projects now largely complete and the asset base
well invested, we continue to apply rigorous discipline to new approvals. We now
expect capital expenditure for 2026 to be around €500 million, reduced from
previous guidance of €550 million, while continuing to prioritise safety and
asset integrity.
We maintain a strong liquidity position, supported by the successful refinancing
in October 2025 of the €600 million Eurobond that matured in April 2026 and
refinancing our €1 billion Syndicated Revolving Credit Facility in the first
half of 2026. The weighted average maturity of the Group's committed debt
facilities at 30June2026 was 4.6 years. Together with our investment grade
credit rating and no financial covenants, this provides substantial financial
resilience and flexibility.
Delivering for our customers with innovative, sustainable solutions, service and
scale
We continued to strengthen customer relationships and win new business by
helping customers transition to innovative paper-based packaging solutions that
combine sustainability, performance and operational efficiency. Our
differentiated offering spans a broad range of recyclable packaging solutions
including paper-based and high-performance applications, supported by deep
technical expertise, integrated production capabilities and a cost-advantaged
manufacturing network. Together, these capabilities are supporting market share
gains and creating new opportunities across attractive growth segments.
We are also benefiting from our recent investment in new capacity, where we have
added approximately 300,000 tonnes of production this year. The new sack kraft
paper machine at Steti continues to increase production supporting growth in
industrial bags, eCommerce packaging and new consumer applications. The
debottlenecking projects at Swiecie and Kuopio have improved productivity and
efficiency and provide greater flexibility to meet evolving packaging
requirements across our customer base.
Demand for paper-based eCommerce solutions remains strong in both Europe and
North America, albeit in a fast evolving market. We have combined our eCommerce
sales teams across corrugated and flexible packaging creating a simpler and more
compelling proposition for customers, enabling us to support their evolving
packaging requirements across multiple applications and markets. The additional
capacity created through our recent investments, including expanded eCommerce
paper bags capacity in North America, is supporting growth with existing
customers, and helping secure new business.
A well-invested platform for future growth
Our leading positions in sustainable packaging and paper, integrated and cost
-advantaged production platform, and exposure to structurally growing packaging
markets provide a strong foundation for future growth. The actions taken across
the business are enhancing our customer offering, improving cost competitiveness
and strengthening operational performance. With major expansionary investments
complete and additional capacity now operational, we are focused on delivering
growth, improving returns and creating long-term value from our existing asset
base.
Group performance
Group revenue of €3,975million was up on prior year (H1 2025: €3,909million)
driven mainly by the revenue contribution from the acquired Schumacher plants.
The benefit from higher organic sales volumes was offset by lower average
selling prices.
Sales prices across our paper grades declined in the second half of 2025 and
into early 2026. This resulted in the Group entering 2026 with selling prices
below average H1 2025 levels. Although price increases were implemented during
the first half of 2026, with some initial benefits realised in the period,
average H1 2026 prices remained below the comparative prior year. The full
benefit of these price increases is expected to be achieved in the third quarter
of 2026.
Input costs were higher year on year with wood cost increases in Central and
Eastern Europe, as well as the impact of higher energy, other raw material and
logistics costs as a result of the conflict in the Middle East. As we enter the
third quarter, they remain above average H1 2026 input cost price levels.
Fixed costs were broadly flat year-on-year on a like-for-like basis (when
excluding the impact of the forestry fair value and acquired Schumacher cost
base) reflecting our continued focus on cost control and driving efficiency
improvements to offset inflationary cost pressures.
Currency movements had a net negative impact on underlying EBITDA compared to
the prior year predominately due to a weaker US dollar.
Underlying EBITDA was lower at €379million for the half year (H1 2025:
€564million) due to margin pressure and a €35 million forestry fair value loss
recognised in the current period primarily due to a reduction in wood prices in
South Africa (H1 2025: gain of €18 million).
The underlying EBITDA impact of planned maintenance shuts was in line with the
comparable prior year period, totalling around €20 million, all incurred in the
second quarter. We expect a second half impact of around €60 million, split
relatively evenly between the third and fourth quarters of the year. As a
result, the full year impact is now expected to be around €80 million (previous
guidance of around €100 million).
Depreciation and amortisation charges were €237million (H1 2025: €236million).
The Group now expects full year depreciation and amortisation charges of
approximately €475 million (previous guidance of €515-525 million). This was
mainly as a result of revising the estimated useful lives of certain items of
property, plant and equipment following a reassessment in the period of their
expected economic benefits and operational performance, reflecting our well
-invested and maintained asset base.
Net finance costs were €58 million in the period (H1 2025: €53 million). We
continue to expect net finance costs for the full year of around €125 million.
The underlying tax charge for the half year was €17million giving an effective
tax rate of 21% (H1 2025: €61million, 22%). The half year effective tax rate is
lower than the expected full year rate, which remains around 25%, due to a tax
credit received in the first half following successful settlement of a legacy
tax case.
Basic underlying earnings were 11.6 euro cents per share (H1 2025: 42.7 euro
cents per share).
Special items
Special item pre-tax charges of €320 million were recognised in the period. This
comprised non-cash impairment charges of €296 million and restructuring and
closure costs of €24 million. Impairment charges comprised €206 million at the
Duino recycled containerboard mill (Italy), €39 million at the Neusiedler
uncoated fine paper operations (Austria), €31 million at the Schwarzenberg
solidboard mill (Germany) and €20 million of other impairments, primarily
relating to the Stambolijski mill (Bulgaria) that ceased operations in 2024.
The lower margin environment has adversely impacted the performance outlook for
our recycled containerboard mill at Duino (Italy). Since acquiring Duino in 2023
and committing to the capital expansion project, market conditions have changed
materially, with prolonged weak market growth, industry overcapacity, trade
barriers imposed on key export markets and higher energy costs impacting
expected returns. While Duino continues to ramp up in line with plan and we
remain confident in its long-term future, the current outlook indicates a lower
returns profile than previously anticipated, which no longer supports the
asset's previous carrying value.
We continue to respond proactively to changing market conditions, with a clear
focus on improving competitiveness, strengthening cash generation and maximising
returns from our asset base.
Dividend
An interim ordinary dividend of 9.42 euro cents per share has been declared
reflecting one-third of prior year's full year ordinary dividend (H1 2025: 23.33
euro cents per share).
Business unit review
Corrugated Packaging
Mondi is a leading European corrugated packaging producer, with a cost
-competitive asset base, integrated production network and strong customer
offering focused on quality, reliability and service.
We are the leading virgin containerboard producer in Europe and the largest
containerboard producer in emerging Europe. Our virgin containerboard is a high
-quality product with excellent properties for specialised end-use applications,
ideal to meet our customers' needs around the globe.
As a leading corrugated solutions producer in central and emerging Europe, we
leverage our integrated production network and partner with our customers to
create fully recyclable corrugated boxes.
In addition, we produce a wide range of printing papers at our mills in central
Europe and South Africa where we have regional leadership positions. We also
produce market pulp in South Africa for customers around the world.
€million, except for Six months Six months Six months ended
percentages ended ended 31December 2025
30June2026 30June2025
Segment revenue 1,977 1,893 1,882
Underlying EBITDA 148 284 174
Forestry fair value (35) 18 21
(loss)/gain
Underlying EBITDA excluding 183 266 153
forestry fair value
(loss)/gain
Underlying EBITDA margin (%) 7.5% 15.0% 9.2%
Capital employed 4,032 4,396 4,265
ROCE 0.9% 6.6% 4.4%
Corrugated Packaging's underlying EBITDA was €148million with margin of 7.5% (H1
2025: €284million, 15.0%). Lower average selling prices, higher energy costs and
a forestry fair value loss recognised in the period of €35 million (H1 2025:
forestry fair value gain of €18 million) contributed to the margin pressure.
Containerboard sales volumes were up 12% on the prior year driven predominantly
by the ongoing production ramp up at Duino (Italy) and Kuopio (Finland)
following the recent investments in these mills, and supported by demand from
our customers for our broad range of paper grades. Selling prices were on
average lower than the comparative prior year period. Coupled with higher input
costs, this led to lower margins.
Corrugated Solutions achieved 2% box volume growth compared to H1 2025 on a like
-for-like basis, driven by demand for our sustainable packaging solutions for
eCommerce and consumer end-use applications. Overall, margins were lower than
the comparative prior period due to the lag effect of passing on paper price
increases and a weaker performance from the solidboard operations.
Uncoated Fine Paper increased market share with broadly stable sales volumes
compared to the prior year supported by its strong customer offering against a
backdrop of weaker market demand. Despite strong cost control, margins declined
as selling prices were on average lower than the comparative prior year period.
The 12-month trailing return on capital employed (ROCE) was lower at 0.9% driven
by an increase in capital employed due to the start up of a number of major
capacity expansion projects and the acquisition of Schumacher, together with the
impact of lower earnings.
Flexible Packaging
We are a global producer of flexible packaging, offering our customers a unique
portfolio of solutions across industrial and consumer end-use applications.
Approximately 50% of our revenue is derived from industrial end-use
applications, where we are the global market leader in sack kraft paper and
paper bag production. Our customer offering is further supported by our strong
integration, scale, security of supply and global reach.
We generate approximately 50% of our revenue from consumer end-use applications,
producing complex consumer packaging solutions across multiple substrates, with
leadership positions in our chosen markets.
€million, except Six months Six months Six months ended
for percentages ended ended 31December 2025
30June2026 30June2025
Segment revenue 2,022 2,044 1,897
Underlying 251 302 281
EBITDA
Underlying 12.4% 14.8% 14.8%
EBITDA margin
(%)
Capital employed 3,634 3,531 3,622
ROCE 8.7% 11.5% 10.4%
Flexible Packaging's underlying EBITDA was €251 million with margin of 12.4% (H1
2025: €302 million, 14.8%). The converting businesses delivered resilient
performances while in Kraft Paper, volume growth was more than offset by lower
average selling prices as well as higher wood and logistics costs.
Kraft Paper sales volumes increased 8% compared to the prior year supported by
recent investments and an improvement in demand. Selling prices were on average
lower than the comparative prior year period.
Paper Bags achieved 3% sales volume growth compared to H1 2025 supported by
growth in eCommerce solutions in Europe and the US and growing demand for
traditional building material and cement applications in Central America.
Margins were broadly stable compared to the prior year's comparative period.
Consumer Flexibles and Functional Paper and Films continued to focus on
delivering innovative and high-margin packaging solutions to customers. The
business responded quickly through pricing actions to recover the impact of
sharply higher resin and other input costs as a result of the conflict in the
Middle East. In total, margins were stable on H1 2025.
The 12-month trailing return on capital employed (ROCE) was 8.7%, lower than the
previous trailing 12-month period due to an increase in capital employed
following the start up of major capacity expansion projects and the impact of
lower earnings.
Cash flow
Cash generated from operations of €347million (H1 2025: €416million) supported
by a strong focus on working capital management which mitigated the effect of
lower earnings. Total working capital reduced by €122 million (30June2026:
€1,295million, 30June2025: €1,417million).
Investment in property, plant and equipment in the half year was €211 million
(H1 2025: €349 million). Capital expenditure for the full year, which includes
investment in property, plant and equipment and intangible assets, is now
expected to be around €500 million, lower than the €550 million previously
guided. In addition, we expect to receive cash subsidies of around €20 million
this year in relation to our recently invested capital expenditure, with roughly
half received in the first half of the year.
Tax paid was €28 million (H1 2025: €40 million) and interest paid was €86
million (H1 2025: €50 million).
The Group paid €24million of dividends during the period comprising €22million
of ordinary dividends to shareholders in respect of the 2025 final ordinary
dividend and €2 million to non-controlling interests (H1 2025: €233million
comprising €202million in respect of the 2024 final ordinary dividend and €31
million to non-controlling interests).
Liquidity, treasury and borrowings
Net debt at 30June2026 of €2,632million was broadly similar to 31December 2025
of €2,599million. As a result of the lower 12-month trailing underlying EBITDA
in the period, net debt to underlying EBITDA was 3.2 times at 30June2026
(31December 2025: 2.6 times).
Mondi's available liquidity at 30June2026 was €1,154million, comprising the
undrawn Syndicated Revolving Credit Facility (RCF) of €1,000 million and cash
and cash equivalents of €154million.
The Group has an investment grade credit rating with a BBB (stable outlook)
credit rating from Standard & Poor's and a Baa1 (negative outlook) credit rating
from Moody's. The Group has no financial covenants in any of its financing
facilities.
During the period we refinanced the Group's €1 billion RCF with a new initial 5
-year term to 2031, plus two 1 year extension options. The Group also repaid the
remaining €279 million of the €600 million Eurobond that matured in April 2026.
The weighted average maturity of the Group's committed debt facilities at
30June2026 was 4.6 years. The Group retains a strong debt maturity profile. The
only significant debt maturity in the near term is our 2.375% €750 million
Eurobond due to mature in April 2028.
Principal risks and uncertainties
The Board is responsible for the effectiveness of the Group's risk management
activities and internal control processes. It has put procedures in place for
identifying, evaluating, and managing the risks faced by the Group. In
combination with the Audit Committee, the Board conducted, in early 2026, a
robust assessment of the Group's principal and emerging risks to which Mondi is
exposed and it is satisfied that the Group has effective systems and controls in
place to manage these risks relative to the risk appetite levels established.
There were no changes to the Group's principal risks as set out on pages 54 to
63 of the Integrated report and financial statements 2025.
Our principal risks are the following:
Strategic risks:
· Industry productive capacity
· Product substitution
· Fluctuations and variability in selling prices or gross margins
· Country risk
· Climate change risks
Financial risks:
· Capital structure
· Currency risk
· Tax risk
Operational risks:
· Cost and availability of raw materials
· Energy security and related input costs
· Technical integrity of our operating assets
· Environmental impact
· Employee and contractor health and safety
· Attraction and retention of key skills and talent
· Cyber security risk
Compliance risk:
· Reputational risk
Going concern
The directors have reviewed the Group's current financial position and
performance expectations for the period until 31 December 2027, including
consideration of the principal risks which may impact the Group's performance in
the near term. As the Group's debt facilities and loan agreements do not contain
financial covenants, the directors have focused on liquidity in performing their
going concern assessment.
At 30June2026, the Group had available liquidity of €1,154million, comprising
the undrawn Syndicated Revolving Credit Facility (RCF) of €1,000million and cash
and cash equivalents of €154million. The Group retains a strong debt maturity
profile. The only significant debt maturity in the near term is the 2.375% €750
million Eurobond due to mature in April 2028.
The Group has an investment grade credit rating with a BBB (stable outlook)
credit rating from Standard & Poor's and a Baa1 (negative outlook) credit rating
from Moody's. The Group has no financial covenants in any of its financing
facilities.
The Group has prepared a base case forecast reflecting recent trading
performance in the first half of the year and market development expectations
for the period to 31 December 2027. The base case forecast was sensitised to
reflect a severe but plausible downside scenario including possible future
impacts from the principal risks on the Group's performance. This downside
scenario does not incorporate mitigating actions such as reductions and
deferrals of capital and operational expenditure or cash preservation responses,
which the Group would implement in the event of a severe and extended revenue
decline. In such a scenario, there remains significant liquidity headroom
throughout the assessment period.
In addition to its modelled downside going concern scenario, the Board has
reverse stress tested the model to determine the extent of downturn which would
result in no liquidity headroom. A decline exceeding 100% of the planned
underlying EBITDA throughout the assessment period until 31 December 2027, well
in excess of that contemplated in the severe but plausible downside scenario,
would be required to result in no liquidity headroom, which is considered very
unlikely. This reverse stress test also does not incorporate any mitigating
actions.
Following their assessment, the directors have formed a judgement, at the time
of approving the condensed consolidated financial statements, that there are no
material uncertainties that cast doubt on the Group's going concern status and
that it is a reasonable expectation that the Group has adequate resources to
continue in operational existence for the going concern period. For this reason,
the Group continues to adopt the going concern basis in preparing the condensed
consolidated financial statements for the six months ended 30June2026.
Directors' responsibility statement
The directors confirm that to the best of their knowledge:
· the condensed consolidated financial statements of the Group have
been prepared in accordance with International Accounting Standard 34, `Interim
Financial Reporting', as adopted for use in the United Kingdom, and the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority; and
· the half year results announcement includes a fair review of the
information required by DTR 4.2.7 and DTR4.2.8, namely:
· the half year results announcement includes a fair review of the
significant events during the six months ended 30June2026 and their impact on
the condensed consolidated financial statements and a description of the
principal risks and uncertainties for the remaining six months of the year
ending 31December2026;
· there have been no significant individual related party transactions
during the first six months of the financial year; and
· there have been no significant changes in the Group's related party
relationships from those reported in the Integrated report and financial
statements 2025.
The Group's condensed consolidated financial statements, and related notes, were
approved by the Board and authorised for issue on 29 July 2026 and were signed
on its behalf by:
Andrew KingMike Powell
DirectorDirector
29 July 2026
Independent review report to Mondi plc
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed Mondi plc's condensed consolidated interim financial statements
(the "interim financial statements") in the half year results announcement of
Mondi plc for the 6 month period ended 30June2026 (the "period").
Based on our review, nothing has come to our attention that causes us to believe
that the interim financial statements are not prepared, in all material
respects, in accordance with UK adopted International Accounting Standard 34,
`Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules
sourcebook of the United Kingdom's Financial Conduct Authority.
The interim financial statements comprise:
· the condensed consolidated statement of financial position as at
30June2026;
· the condensed consolidated income statement for the period then
ended;
· the condensed consolidated statement of comprehensive income for the
period then ended;
· the condensed consolidated statement of changes in equity for the
period then ended;
· the condensed consolidated statement of cash flows for the period
then ended; and
· the explanatory notes to the interim financial statements.
The interim financial statements included in the half year results announcement
of Mondi plc have been prepared in accordance with UK adopted International
Accounting Standard 34, `Interim Financial Reporting' and the Disclosure
Guidance and Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, `Review of Interim Financial Information Performed by the
Independent Auditor of the Entity' issued by the Financial Reporting Council for
use in the United Kingdom ("ISRE (UK) 2410"). A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and, consequently, does not enable
us to obtain assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not express an audit
opinion.
We have read the other information contained in the half year results
announcement and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the interim financial
statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed in
an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern that
are not appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with ISRE (UK) 2410. However, future events
or conditions may cause the group to cease to continue as a going concern.
Responsibilities for the interim financial statements and the review
Our responsibilities and those of the directors
The half year results announcement, including the interim financial statements,
is the responsibility of, and has been approved by the directors. The directors
are responsible for preparing the half year results announcement in accordance
with the Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority. In preparing the half year results
announcement, including the interim financial statements, the directors are
responsible for assessing the group's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the
group or to cease operations, or have no realistic alternative but to do so.
Our responsibility is to express a conclusion on the interim financial
statements in the half year results announcement based on our review. Our
conclusion, including our Conclusions relating to going concern, is based on
procedures that are less extensive than audit procedures, as described in the
Basis for conclusion paragraph of this report.
Use of this report
This report, including the conclusion, has been prepared for and only for the
company for the purpose of complying with the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority and for no other purpose. We do not, in giving this conclusion, accept
or assume responsibility for any other purpose or to any other person to whom
this report is shown or into whose hands it may come save where expressly agreed
by our prior consent in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
London
29 July 2026
Condensed consolidated income statement
for the six months ended 30June2026
Six months Six months
ended ended
30June2026 30June2025
€million Notes Underlying Special Total Underlying Special
Total
items items
(Note (Note
4) 4)
Group revenue 3 3,975 - 3,975 3,909 -
3,909
Materials, energy (2,070) - (2,070) (1,957) -
(1,957)
and
consumables used
Variable selling (388) - (388) (348) -
(348)
expenses
Gross margin 1,517 - 1,517 1,604 -
1,604
Maintenance and (184) - (184) (184) -
(184)
other
indirect expenses
Personnel costs (704) (18) (722) (673) (1)
(674)
Other net (250) (6) (256) (183) (24)
(207)
operating
expenses
EBITDA 3 379 (24) 355 564 (25) 539
Depreciation, (237) (296) (533) (236) -
(236)
amortisation
and impairments
Operating 3 142 (320) (178) 328 (25) 303
profit/(loss)
Net loss from (1) - (1) - - -
joint ventures
Net finance costs (58) - (58) (53) -
(53)
Investment income 9 - 9 6 - 6
Foreign currency 1 - 1 1 - 1
gains
Finance costs (68) - (68) (60) -
(60)
Net monetary loss (3) - (3) (3) - (3)
arising
from
hyperinflationary
economies
Profit/(loss) 80 (320) (240) 272 (25) 247
before tax
Tax (17) 14 (3) (61) 7
(54)
(charge)/credit
Profit/(loss) for 63 (306) (243) 211 (18) 193
the period
Attributable to:
Non-controlling 12 - 12 23 - 23
interests
Shareholders 51 (306) (255) 188 (18) 170
Earnings per
share (EPS)
attributable to
shareholders
euro cents
Basic EPS 6 (57.8)
38.6
Diluted EPS 6 (57.8)
38.6
Basic underlying 6 11.6
42.7
EPS
Diluted 6 11.6
42.7
underlying EPS
Condensed consolidated statement of comprehensive income
for the six months ended 30June2026
€million Six months ended 30June2026 Six months ended 30June2025
(Loss)/profit for (243) 193
the period
Items that may
subsequently be or
have been
reclassified to the
condensed
consolidated income
statement
Fair value gains - 2
arising from cash
flow hedges
Exchange differences 64 (81)
on translation of
foreign non-euro
operations
Items that will not
subsequently be
reclassified to the
condensed
consolidated income
statement
Remeasurements of (1) 4
retirement benefits
plans
Tax effect thereof - (1)
Other comprehensive 63 (76)
income/(expense) for
the period
Attributable to:
Non-controlling 5 (10)
interests
Shareholders 58 (66)
Total comprehensive (180) 117
(expense)/income for
the period
Attributable to:
Non-controlling 17 13
interests
Shareholders (197) 104
Condensed consolidated statement of financial position
as at 30June2026
€million Notes As at 30June2026 Asat 31December 2025
Property, plant and 5,460 5,751
equipment
Goodwill 898 893
Intangible assets 96 110
Forestry assets 8 478 511
Investments in joint 9 10
ventures
Financial instruments 25 25
Deferred tax assets 28 22
Other non-current assets 2 2
Total non-current assets 6,996 7,324
Inventories 1,258 1,213
Trade and other receivables 1,549 1,290
Current tax assets 19 21
Financial instruments 12 4
Cash and cash equivalents 10b 157 292
2,995 2,820
Assets held for sale 3 -
Total current assets 2,998 2,820
Total assets 9,994 10,144
Short-term borrowings 9 (264) (344)
Trade and other payables (1,512) (1,366)
Current tax liabilities (74) (60)
Provisions (55) (59)
Financial instruments (14) (14)
(1,919) (1,843)
Liabilities directly (10) -
associated with assets held
for sale
Total current liabilities (1,929) (1,843)
Medium and long-term 9 (2,529) (2,538)
borrowings
Net retirement benefits (151) (151)
liability
Deferred tax liabilities (322) (346)
Non-current tax liabilities - (4)
Provisions (37) (34)
Other non-current (37) (28)
liabilities
Total non-current (3,076) (3,101)
liabilities
Total liabilities (5,005) (4,944)
Net assets 4,989 5,200
Equity
Share capital 97 97
Own shares (12) (16)
Retained earnings 4,168 4,449
Other reserves 248 197
Total attributable to 4,501 4,727
shareholders
Non-controlling interests in 488 473
equity
Total equity 4,989 5,200
The Group's condensed consolidated financial statements, including related notes
1 to 13, were approved by the Board and authorised for issue on 29 July 2026 and
were signed on its behalf by:
Andrew KingMike Powell
DirectorDirector
Mondi plc company registered number:6209386
Condensed consolidated statement of changes in equity
for the six months ended 30June2026
€million Equity Non Total
attributable to -controlling equity
shareholders interests
At 1 January 2026 4,727 473 5,200
Total comprehensive (197) 17 (180)
(expense)/income for the period
(Loss)/profit for the period (255) 12 (243)
Other comprehensive income 58 5 63
Hyperinflation monetary (8) (1) (9)
adjustment
Transactions with shareholders
in their capacity as
shareholders
Dividends (22) (2) (24)
Purchases of own shares (3) - (3)
Injection from non-controlling - 1 1
interests
Other 4 - 4
At 30June2026 4,501 488 4,989
€million Equity Non Total
attributable to -controlling equity
shareholders interests
At 1 January 2025 4,857 493 5,350
Total comprehensive income for 104 13 117
the period
Profit for the period 170 23 193
Other comprehensive expense (66) (10) (76)
Hyperinflation monetary 1 - 1
adjustment
Transactions with shareholders
in their capacity as
shareholders
Dividends (202) (31) (233)
Purchases of own shares (8) - (8)
Other 7 - 7
At 30June2025 4,759 475 5,234
Equity attributable to shareholders
€million As at 30June2026 Asat 31December 2025
Share capital 97 97
Own shares (12) (16)
Retained earnings 4,168 4,449
Cumulative (396) (456)
translation
adjustment reserve
Post-retirement (60) (56)
benefits reserve
Share-based payment 10 15
reserve
Merger reserve 667 667
Other sundry 27 27
reserves
Total 4,501 4,727
Condensed consolidated statement of cash flows
for the six months ended 30June2026
€million Notes Six months Six months
ended ended
30June2026 30June2025
Cash flows from operating
activities
Cash generated from operations 10a 347 416
Income tax paid (28) (40)
Net cash generated from operating 319 376
activities
Cash flows from investing
activities
Investment in property, plant and 3 (211) (349)
equipment
Investment in intangible assets (3) (6)
Investment in forestry assets 8 (27) (24)
Proceeds from the disposal of 4 14
property, plant and equipment
Acquisition of businesses, net of 14 (497)
cash and cash equivalents
Loans advanced to related and - (1)
external parties
Interest received 10 5
Other investing activities 15 7
Net cash used in investing (198) (851)
activities
Cash flows from financing
activities
Proceeds from issue of Eurobond 10c - 592
Repayment of Eurobond 10c (279) -
Proceeds from medium and long 10c - 177
-term borrowings
Repayment of medium and long-term 10c (3) (16)
borrowings
Proceeds from short-term 10c 204 7
borrowings
Repayment of short-term 10c (9) (67)
borrowings
Repayment of lease liabilities 10c (22) (15)
Interest paid 10c (86) (50)
Dividends paid to shareholders 7 (22) (202)
Dividends paid to non-controlling (2) (31)
interests
Purchases of own shares (3) (8)
Injection from non-controlling 1 -
interests
Net cash outflow from debt 10c (35) (15)
-related derivative financial
instruments
Net cash (used in)/generated from (256) 372
financing activities
Net decrease in cash and cash (135) (103)
equivalents
Cash and cash equivalents at 291 269
beginning of period
Cash movement in the period 10c (135) (103)
Effects of changes in foreign 10c (2) (7)
exchange rates
Cash and cash equivalents at end 10b 154 159
of period
Notes to the condensed consolidated financial statements
for the six months ended 30June2026
1 Basis of preparation
These condensed consolidated financial statements as at and for the six months
ended 30June2026 comprise Mondi plc and its subsidiaries (together referred to
as the `Group'), and the Group's share of the results and net assets of its
associates and joint ventures.
The Group's condensed consolidated financial statements have been prepared in
accordance with International Accounting Standard 34, `Interim Financial
Reporting', as adopted for use in the United Kingdom (UK), and the Disclosure
Guidance and Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority. They should be read in conjunction with the Group's
Integrated report and financial statements 2025, prepared in accordance with UK
-adopted International Accounting Standards and with the requirements of the
Companies Act 2006 as applicable to companies reporting under those standards.
The condensed consolidated financial statements have been prepared on a going
concern basis as discussed in the commentary under the heading `Going concern'
which is incorporated by reference into these condensed consolidated financial
statements.
The condensed consolidated financial statements have been prepared under the
historical cost basis of accounting, as modified by forestry assets, pension
assets, certain financial assets and financial liabilities held at fair value
through profit and loss, assets acquired and liabilities assumed in a business
combination and accounting in hyperinflationary economies.
The financial information set out above does not constitute statutory accounts
as defined by section 434 of the Companies Act 2006. A copy of the statutory
accounts for the year ended 31December2025 has been delivered to the Registrar
of Companies. The auditors have reported on those accounts; their report was (i)
unqualified, (ii) did not include a reference to any matters to which the
auditors drew attention by way of emphasis without qualifying their report, and
(iii) did not contain a statement under section 498 (2) or (3) of the Companies
Act 2006. The financial information set out above has been reviewed, not
audited.
The preparation of the condensed consolidated financial statements includes the
use of estimates and assumptions. Although the estimates used are based on
management's best information about current circumstances and future events and
actions, actual results may differ from these estimates. In preparing these
condensed consolidated financial statements, the significant accounting
estimates were consistent with those identified in the Group's Integrated report
and financial statements 2025.
During the period, impairment indicators were identified for the Corrugated
Packaging and Flexible Packaging groups of CGUs, driven by the prolonged
cyclical downturn, continued pressure on industry pricing and margins and lower
forecast cash flows compared with the assumptions used in the annual impairment
assessment. Accordingly, an updated assessment of the recoverability of goodwill
allocated to both groups of CGU's was performed.
Recoverable amounts were determined using value-in-use calculations based on
discounted cash flow projections derived from the latest management forecasts.
The methodology and key assumptions applied were consistent with those used in
the annual impairment assessment, updated to reflect current trading
performance, revised forecast cash flows, and the applicable discount rates and
carrying amounts at 30 June 2026. The resulting recoverable amounts exceeded the
respective carrying amounts and no impairment of goodwill was identified.
During the period, the Group completed a review of the estimated useful lives of
certain items of property, plant and equipment. The review was undertaken
following a reassessment of their expected economic benefits and operational
performance, reflecting the Group's well-invested asset base and accumulated
operational experience since the previous comprehensive review of useful lives.
Based on this assessment, the estimated useful lives of certain assets were
revised to better reflect the expected period over which future economic
benefits are consumed. The change has been accounted for prospectively as a
change in accounting estimate in accordance with IAS 8. As a result,
depreciation expense for the six months ended 30June2026 decreased by €22
million.
2 Accounting policies
The accounting policies and Alternative Performance Measures (APMs), as defined
at the end of this document, and the methods of computation and presentation
applied in the preparation of the condensed consolidated financial statements
for the six months ended 30June2026 are consistent with those applied in the
preparation of the Group's annual financial statements for the year ended
31December2025.
Income tax expense is recognised based on management's estimate of the weighted
average effective income tax rate before special items, an APM as defined at the
end of this document, expected for the full financial year.
The following amendments became effective for the financial period beginning on
1 January 2026, but the Group did not have to change its accounting policies or
make any retrospective adjustments as a result of adopting these amendments:
- Amendments to IFRS 9 and IFRS 7 'Financial Instruments and Financial
Instruments: Disclosures - Classification and Measurement of Financial
Instruments'
- Amendments to IFRS 9 and IFRS 7 'Financial Instruments and Financial
Instruments: Disclosures - Contracts Referencing Nature-dependent Electricity'
- Annual Improvements to IFRS Accounting Standards - Volume 11
3 Operating segments
The Group's operating segments are reported in a manner consistent with the
internal reporting provided to the Executive Committee, the chief operating
decision-making body. The operating segments are managed based on the nature of
the underlying products produced by those businesses and comprise two distinct
segments. The segment information also includes APMs as defined at the end of
this document.
Comparative segment information for the six months ended 30June2025 has been
restated to reflect the operating segment reorganisation effective 1 October
2025, as described in note 2 of the Group's Integrated report and financial
statements 2025. The restatement reflects the combination of the former Uncoated
Fine Paper operating segment with Corrugated Packaging to form a single enlarged
Corrugated Packaging operating segment. The reorganisation had no impact on the
Group's overall result.
Six months ended 30June2026
€million, unless Corrugated Flexible Corporate Intersegment Group
otherwise stated Packaging Packaging elimination
Segment revenue 1,977 2,022 - (24) 3,975
Internal revenue (16) (8) - 24 -
External revenue 1,961 2,014 - - 3,975
Underlying EBITDA 148 251 (20) - 379
Depreciation, (134) (103) - - (237)
amortisation and
impairments
Underlying operating 14 148 (20) - 142
profit/(loss)
Special items before (286) (34) - - (320)
tax
Capital employed 4,032 3,634 (45) - 7,621
Trailing 12-month 4,186 3,582 (79) - 7,689
average capital
employed
Additions to non 163 77 - - 240
-current non-financial
assets
Capital expenditure 120 91 - - 211
cash payments
Underlying EBITDA 7.5 12.4 - - 9.5
margin (%)
Return on capital 0.9 8.7 - - 4.0
employed (%)
Average number of 10.4 11.7 0.1 - 22.2
employees (thousands)1
1Presented on a full time employee equivalent basis.
Six months ended 30June2025 (restated)
€million, unless Corrugated Flexible Corporate Intersegment Group
otherwise stated Packaging Packaging elimination
Segment revenue 1,893 2,044 - (28) 3,909
Internal revenue (17) (11) - 28 -
External revenue 1,876 2,033 - - 3,909
Underlying EBITDA 284 302 (22) - 564
Depreciation, (129) (107) - - (236)
amortisation and
impairments
Underlying operating 155 195 (22) - 328
profit/(loss)
Special items before (23) (2) - - (25)
tax
Capital employed 4,396 3,531 (54) - 7,873
Trailing 12-month 3,724 3,211 (70) - 6,865
average capital
employed
Additions to non 706 179 - - 885
-current non-financial
assets
Capital expenditure 166 183 - - 349
cash payments
Underlying EBITDA 15.0 14.8 - - 14.4
margin (%)
Return on capital 6.6 11.5 - - 8.4
employed (%)
Average number of 9.8 11.9 0.1 - 21.8
employees (thousands)1
1Presented on a full time employee equivalent basis.
Year ended 31December 2025
€million, unless Corrugated Flexible Corporate Intersegment Group
otherwise stated Packaging Packaging elimination
Segment revenue 3,775 3,941 - (53) 7,663
Internal revenue (31) (22) - 53 -
External revenue 3,744 3,919 - - 7,663
Underlying EBITDA 458 583 (40) - 1,001
Depreciation, (280) (223) (1) - (504)
amortisation and
impairments
Underlying operating 178 360 (41) - 497
profit/(loss)
Special items before (67) (39) - - (106)
tax
Capital employed 4,265 3,622 (88) - 7,799
Trailing 12-month 4,048 3,445 (76) - 7,417
average capital
employed
Additions to non 961 381 - - 1,342
-current non-financial
assets
Capital expenditure 325 348 - - 673
cash payments
Underlying EBITDA 12.1 14.8 - - 13.1
margin (%)
Return on capital 4.4 10.4 - - 6.7
employed (%)
Average number of 10.2 11.8 0.1 - 22.1
employees (thousands)1
1Presented on a full time employee equivalent basis.
External revenue by location of contribution and by location of customer
External External
revenue by revenue by
location of location of
contribution customer
€ million Six months Six months Six months Six months
ended ended ended ended
30June2026 30June2025 30June2026 30June2025
Western
Europe
Austria 649 632 79 83
Germany 438 372 579 546
United 15 7 126 111
Kingdom
Rest of 444 381 943 932
western
Europe
Western 1,546 1,392 1,727 1,672
Europe
total
Emerging
Europe
Czech 403 394 138 133
Republic
Poland 718 724 359 359
Turkiye 220 200 240 227
Rest of 408 442 262 275
emerging
Europe
Emerging 1,749 1,760 999 994
Europe
total
Africa
South 279 302 194 204
Africa
Rest of 27 41 190 171
Africa
Africa 306 343 384 375
total
North 323 360 461 456
America
South 4 2 76 76
America
Asia and 47 52 328 336
Australia
Group 3,975 3,909 3,975 3,909
revenue
4 Special items
The Group separately discloses special items, an APM as defined at the end of
this document, on the face of the condensed consolidated income statement to
assist its stakeholders in understanding the underlying financial performance
achieved by the Group on a basis that is comparable from year to year.
€million Six months Six months
ended ended
30June2026 30June2025
Operating special items
Impairment of assets (296) -
Restructuring and closure costs:
Personnel costs (18) (1)
Other restructuring and closure costs (6) (1)
Costs relating to the acquisition of the Western - (23)
Europe Packaging Assets of Schumacher Packaging
Total special items before tax (320) (25)
Tax credit 14 7
Total special items (306) (18)
The cash outflow from operating special items for the six months ended
30June2026 was €16 million (six months ended 30June2025: €28 million), primarily
relating to special item charges recognised in prior periods.
Details of the special items recognised in the year ended 31December2025 were
disclosed in note 3 of the Group's Integrated report and financial statements
2025. Special items during the period ended 30June2026 comprised the following:
Asset impairments (Corrugated Packaging)
Impairment charges of €279 million were recognised, primarily in relation to the
Duino recycled containerboard mill (Italy), the Neusiedler uncoated fine paper
operations (Austria) and the Schwarzenberg solidboard mill (Germany). Further
details are provided in note 5.
Stambolijski mill closure and disposal (Flexible Packaging)
In April 2026, an agreement was signed to dispose of the remaining assets and
liabilities of the Stambolijski paper mill (Bulgaria). The mill ceased
operations following the September 2024 fire. The transaction is expected to be
completed in the second half of 2026, subject to customary closing procedures,
and the related assets and liabilities were classified as held for sale as at
30June2026 in accordance with IFRS 5. During the six months ended 30June2026, a
release of restructuring and closure provisions of €1 million and additional
asset impairments of €17 million were recognised, reflecting updated estimates
of the final closure costs and the recoverability of the remaining assets.
Together with the €38million of restructuring and closure costs and €75million
of asset impairments recognised in 2024 and 2025, total costs related to the
closure amounted to €129million.
Converting plant network optimisation and overhead streamlining actions
(Corrugated Packaging and Flexible Packaging)
In line with the Group's ongoing commitment to strengthening performance, cash
generation and competitiveness, the Group has taken action to optimise its
converting plant network and streamline overhead costs. Actions include plant
closures previously disclosed in the 2025 consolidated financial statements, as
well as three additional plant closures announced in April 2026, comprising a
corrugated packaging plant in Poland, a consumer flexibles plant in Hungary and
a paper bags plant in Germany.
For the six months ended 30June2026, the Group recognised restructuring and
closure costs of €25 million. Of this amount, €7 million was attributable to
Corrugated Packaging and €18 million to Flexible Packaging. Including the costs
recognised in 2025, total charges related to these plant closures and other
actions amount to €43million of restructuring and closure costs and €57 million
of impairment charges, resulting in total charges of €100million. Of this
amount, €50 million was incurred in Corrugated Packaging and €50 million in
Flexible Packaging.
5 Asset impairments
During the six months ended 30 June 2026, the Group recognised impairment
charges of €296 million as set out in the table below. The impairment charges
were recognised within special items and allocated to intangible assets and
property, plant and equipment. The impairment charges primarily relate to
operations within the Corrugated Packaging operating segment, with the remaining
amount relating to the Stambolijski paper mill in the Flexible Packaging
operating segment.
€million Duino Neusiedler Schwarzenberg Other Total
Property, plant 204 39 26 18 287
and equipment
Intangible assets 2 - 5 2 9
Total impairment 206 39 31 20 296
charge (see note
4)
During the period, management identified indicators of impairment at the Duino,
Neusiedler and Schwarzenberg mills, reflecting continued soft market conditions
and updated profitability expectations. Accordingly, the recoverable amounts of
the respective cash-generating units (CGUs) were reassessed in accordance with
IAS 36.
The recoverable amounts of the Duino, Neusiedler and Schwarzenberg CGUs were
assessed in accordance with IAS36 as the higher of value in use and fair value
less costs of disposal. The assessments incorporated, as applicable, discounted
cash flow projections based on the latest management-approved forecasts and
estimates of the value of the underlying assets. Value in use calculations were
discounted using a pre-tax discount rate of 7.0%. The recoverable amounts
determined for Neusiedler, Duino and Schwarzenberg were €40 million, €41 million
and €3million, respectively. Where recoverable amounts were determined using
fair value less costs of disposal, the valuation was based on a market approach
using estimates of the value of individual assets and the fair value
measurements were categorised within Level 3 of the fair value hierarchy. The
most significant inputs related to the estimated values of specialised
production assets and land and buildings.
Impairment charges were recognised where the carrying amounts of the CGUs
exceeded their recoverable amounts. The impairment charge was allocated to the
individual assets within the CGUs in accordance with IAS 36. In allocating the
impairment, no asset was written down below the highest of its fair value less
costs of disposal, its value in use and zero. As a result, further adverse
changes in the value-in-use assumptions would not necessarily result in an
additional impairment charge.
Management considers the assumptions applied in the impairment assessments to
represent its best estimate of future market conditions and operating
performance at the reporting date.
6 Earnings per share (EPS)
EPS attributable to shareholders
euro cents Six months ended 30June2026 Six months ended 30June2025
Basic EPS (57.8) 38.6
Diluted EPS (57.8) 38.6
Basic underlying EPS 11.6 42.7
Diluted underlying EPS 11.6 42.7
Basic headline EPS 5.4 37.2
Diluted headline EPS 5.4 37.2
The calculation of basic and diluted EPS, basic and diluted underlying EPS and
basic and diluted headline EPS is based on the following data:
Earnings
€million Six months Six months
ended ended
30June2026 30June2025
(Loss)/profit for the period attributable to (255) 170
shareholders
Special items (see note 4) 320 25
Related tax (see note 4) (14) (7)
Underlying earnings 51 188
Gain on disposal of property, plant and (2) (3)
equipment
Insurance reimbursements for property damages (5) (4)
Restructuring and closure costs (see note 4) (24) (2)
Costs relating to the acquisition of the - (23)
Western Europe Packaging Assets of
SchumacherPackaging
Related tax 4 8
Headline earnings for the period 24 164
Underlying earnings and headline earnings represent APMs which are defined at
the end of this document.
Weighted
average
number of
shares
million Six months Six months ended 30June2025
ended
30June2026
Basic number of 440.9 440.7
ordinary shares
outstanding
Diluted number of 440.9 440.7
ordinary shares
outstanding
7 Dividends
The interim dividend for the year ending 31December 2026 of 9.42 euro cents per
ordinary share will be paid on Friday 25September 2026 to those shareholders on
the register of Mondi plc on Friday 21 August 2026. The dividend will be paid
from distributable reserves of Mondi plc, as presented in the annual financial
statements for the year ended 31December 2025. The interim dividend is not
recognised as a liability at 30June2026.
Six months ended 30June2026 Year ended 31December 2025
euro cents €million euro cents €million
per share per share
Final dividend in 4.92 22 46.67 202
respect of prior year
Interim dividend in 9.42 42 23.33 103
respect of current
year
The interim dividend declared for the year ended 31December 2025 of 23.33 euro
cents per ordinary share was paid in September 2025.
Dividend timetable
The interim dividend for the year ending 31December 2026 will be paid in
accordance with the following timetable:
Last date to trade shares cum-dividend
JSE Limited Tuesday 18 August 2026
London Stock Exchange Wednesday 19 August 2026
Shares commence trading ex-dividend
JSE Limited Wednesday 19 August 2026
London Stock Exchange Thursday 20 August 2026
Record date Friday 21 August 2026
Last date for receipt of Dividend Reinvestment Thursday 27 August 2026
Plan (DRIP) elections by Central Securities
Depository Participants
Last date for DRIP elections to UK Registrar and
South African Transfer Secretaries
South African Register Friday 28 August 2026
UK Register Monday 7 September 2026
Payment Date Friday 25 September 2026
DRIP purchase settlement date (subject to market
conditions and the purchase of shares in the open
market)
UK Register Tuesday 29 September 2026
South African Register Thursday 1 October 2026
DRIP results announcement Friday 9 October 2026
Currency conversion date
ZAR/euro Thursday 30 July 2026
Euro/sterling Wednesday 9 September 2026
Share certificates on Mondi plc's South African register may not be
dematerialised or rematerialised between Wednesday 19 August 2026 and Friday 21
August 2026, both dates inclusive, nor may transfers between the UK and South
African registers of Mondi plc take place between Wednesday 12 August2026 and
Friday 21 August 2026, both dates inclusive.
Information relating to the dividend tax to be withheld from Mondi plc
shareholders on the South African branch register will be announced separately,
together with the ZAR/euro exchange rate to be applied, on or shortly after
Thursday 30July 2026.
8 Forestry assets
€million As at 30June2026 As at 30June2025 Asat 31December 2025
At 1 January 511 503 503
Investment in 27 24 50
forestry
assets
Fair value (35) 18 39
(loss)/gain
Disposal of - (1) (1)
assets
Felling costs (45) (44) (85)
Currency 20 (29) 5
movements
At 30June / 31 478 471 511
December
The fair value of forestry assets is determined using a market-based approach
and is a level 3 measure in terms of the fair value measurement hierarchy (see
note 11), consistent with prior year. The valuation process and key observable
inputs, including the sensitivity analyses, were largely in line with those
applied for the year ended 31December2025, as described in note 15 of the
Group's Integrated report and financial statements 2025.
9 Borrowings
Financing facilities
The primary sources of the Group's liquidity include its €3 billion Guaranteed
Euro Medium Term Note Programme, its €1 billion Syndicated Revolving Credit
Facility (RCF), and financing from various banks and other credit agencies, thus
providing the Group with access to diverse sources of debt financing. The
principal loan arrangements in place are the following:
€million Maturity Interest As at Asat 31December 2025
rate % 30June2026
Financing
facilities
Syndicated May 2031 EURIBOR 1,000 1,000
Revolving Credit + margin
Facility
€600 million April 2026 1.625% - 279
Eurobond
€750 million April 2028 2.375% 750 750
Eurobond
€550 million May 2031 3.375% 550 550
Eurobond
€500 million May 2032 3.750% 500 500
Eurobond
€600 million May 2033 3.750% 600 600
Eurobond
Long-Term Facility December Various 14 20
Agreements 2026-June
2031
Total committed 3,414 3,699
facilities
Drawn (2,414) (2,699)
Total committed 1,000 1,000
facilities
available
The Group's Eurobonds incur a fixed rate of interest. Foreign exchange swap
agreements are utilised by the Group to raise non-euro-denominated currency to
fund subsidiaries' liquidity needs, thereby exposing the Group to floating
interest rates.
In April 2026, the Group repaid the remaining €279 million of the €600 million
Eurobond at its maturity. In May 2026, the Group completed the refinancing of
its €1 billion RCF through an amendment and restatement of the existing
facility, extending the maturity from June 2028 to May 2031.
Short-term liquidity needs are met by cash and the RCF. As at 30June2026, the
Group had no financial covenants in any of its financing facilities.
The Group currently has investment grade credit ratings from both Moody's
Investors Service (Baa1, outlook negative) and Standard & Poor's (BBB, outlook
stable).
As at 30June2026 Asat 31December 2025
€million Current Non-current Total Current Non-current Total
Secured
Lease 38 138 176 39 145 184
liabilities
Total 38 138 176 39 145 184
secured
Unsecured
Bonds - 2,386 2,386 279 2,384 2,663
Bank loans 226 5 231 26 9 35
and
overdrafts
Total 226 2,391 2,617 305 2,393 2,698
unsecured
Total 264 2,529 2,793 344 2,538 2,882
borrowings
As at 30June2026, the Group's current bank loans and overdrafts borrowings
included €220 million borrowed on uncommitted facilities (as at 31December 2025:
€16 million).
10 Consolidated cash flow analysis
(a) Reconciliation of profit before tax to cash generated from operations
€million Six months Six months
ended ended
30June2026 30June2025
(Loss)/profit before tax (240) 247
Depreciation and amortisation 237 236
Share-based payments 4 7
Net pre-tax cash flow effect of 304 (3)
current and prior period special
items
Net finance costs 58 53
Net monetary loss arising from 3 3
hyperinflationary economies
Net loss from joint ventures 1 -
Decrease in provisions (2) (11)
Decrease in net retirement benefits (5) (2)
Movement in working capital (94) (130)
Increase in inventories (24) (17)
Increase in operating receivables (280) (220)
Increase in operating payables 210 107
Fair value loss/(gain) on forestry 35 (18)
assets
Felling costs 45 44
Net gain on disposal of property, (2) (3)
plant and equipment
Insurance reimbursements for (5) (4)
property damages
Other adjustments 8 (3)
Cash generated from operations 347 416
(b) Cash and cash equivalents
€million As at As at Asat
30June2026 30June2025 31December
2025
Cash and cash equivalents carried at 157 168 208
amortised cost
Money market funds valued at fair value - - 84
through profit and loss
Cash and cash equivalents per condensed 157 168 292
consolidated statement of financial
position
Bank overdrafts included in short-term (3) (9) (1)
borrowings
Cash and cash equivalents per condensed 154 159 291
consolidated statement of cash flows
The Group operates in certain countries where the existence of exchange controls
or access to hard currency may restrict the use of certain cash balances outside
of those countries. These restrictions are not expected to have any material
effect on the Group's ability to meet its ongoing obligations.
(c) Movement in net debt
The Group's net debt position is as follows:
€million Cashand Debt Debtdue Debt Totalnet
cash due afterone -related debt
equivalents within year derivative
one financial
year1 instruments
At 1 January 291 (343) (2,538) (9) (2,599)
2026
Cash flow (135) 106 3 35 9
Cash movement in (135) - - - (135)
the period
Repayment of - 279 - - 279
Eurobond
Proceeds from - (204) - - (204)
borrowings
Repayment of - 9 3 - 12
borrowings
Repayment of - 22 - - 22
lease
liabilities
Net cash outflow - - - 35 35
from debt
-related
derivative
financial
instruments
Additions to - (5) (20) - (25)
lease
liabilities
Disposal of - 2 12 - 14
lease
liabilities
Movement in - (1) (2) - (3)
unamortised loan
costs
Net movement in - - - (22) (22)
fair value of
derivative
financial
instruments
Reclassification - (18) 18 - -
Currency (2) (2) (2) - (6)
movements
At 30June2026 154 (261) (2,529) 4 (2,632)
1Excludes bank overdrafts of €3 million (as at 31December 2025: €1 million),
which are included in cash and cash equivalents (see note 10b).
The Group incurred interest expense of €70 million in relation to bank
overdrafts, loans and lease liabilities (six months ended 30June2025: €64
million), before the capitalisation of interest. Included in this expense is €16
million (six months ended 30June2025: €20 million) relating to forward exchange
rates on derivative contracts. Interest paid on borrowings was €86 million (six
months ended 30June2025: €50 million).
11 Fair value measurement
Assets and liabilities that are measured at fair value, or where the fair value
of financial instruments has been disclosed in the notes to the condensed
consolidated financial statements, are based on the following fair value
measurement hierarchy:
· Level 1 - quoted prices (unadjusted) in active markets for identical assets
or liabilities
· Level 2 - inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly (that is, as prices) or
indirectly (that is, derived from prices)
· Level 3 - inputs for the asset or liability that are not based on
observable market data (that is, unobservable inputs)
The assets measured at fair value using level 3 inputs are the Group's forestry
assets, as detailed in note 8.
As at 30June2026, the fair value of level 2 derivative financial assets is €12
million (as at 31December 2025: €4million), whereas the fair value of level 2
derivative financial liabilities is €14 million (as at 31December 2025:
€14million).
Cash and cash equivalents include money market funds, which are carried at fair
value through profit and loss and classified as level 1 within the fair value
hierarchy, with the remaining balance carried at amortised cost, as set out in
note 10b.
The Group did not measure any financial assets or financial liabilities at fair
value on a non-recurring basis as at 30June2026. There have been no transfers of
assets or liabilities between levels of the fair value hierarchy during the
period.
The fair values of financial instruments that are not traded in an active market
(for example, over-the-counter derivatives) require estimation and judgement and
are determined using generally accepted valuation techniques. These valuation
techniques maximise the use of observable market data and rely as little as
possible on Group specific estimates.
Specific valuation methodologies used to value financial instruments include the
following:
· The fair values of foreign exchange contracts are calculated as the present
value of expected future cash flows based on observable yield curves and
exchange rates.
· Other techniques, including discounted cash flow analysis, are used to
determine the fair values of other financial instruments.
Except as detailed below, the carrying values of financial instruments at
amortised cost as presented in the condensed consolidated financial statements
approximate their fair values.
Carrying Fair value
amount
€million As at Asat As at 30June2026 Asat 31December 2025
30June2026 31December
2025
Financial
liabilities
Borrowings 2,793 2,882 2,769 2,868
12 Other disclosures
The write-down of inventories to net realisable value for the six months ended
30June2026 was €49 million (six months ended 30June2025: €36 million) while the
aggregate reversal of previous write-downs of inventories, relating to goods
that had been written down to net realisable value and were subsequently sold
above their carrying value, was €29 million for the six months ended 30June2026
(six months ended 30June2025: €33 million).
Capital commitments contracted for but not recognised as liabilities are €358
million as at 30June2026 (as at 31December 2025: €297 million).
There have been no significant changes to the nature of the contingent
liabilities as disclosed in note 28 of the Group's Integrated report and
financial statements 2025.
There have been no significant changes to the level and nature of the Group's
related party transactions as disclosed in note 30 of the Group's Integrated
report and financial statements 2025.
13 Events occurring after 30June2026
Aside from the interim ordinary dividend declared for the current financial year
(see note7), there have been no material reportable events since 30June2026.
Alternative Performance Measures
The Group presents certain measures of financial performance, financial position
and cash flows in the condensed consolidated financial statements that are not
defined or specified in IFRS Accounting Standards in order to provide additional
performance-related measures to its stakeholders. These measures, referred to as
Alternative Performance Measures (APMs), areprepared on a consistent basis for
all periods presented in this report.
By their nature, the APMs used by the Group are not necessarily uniformly
applied by peer companies and, therefore, may not be directly comparable with
similarly defined measures and disclosures applied by other companies. Such
measures should not be viewed in isolation or as a substitute for the equivalent
IFRS Accounting Standards measure.
Internally, the Group and its operating segments apply the same APMs in a
consistent manner in planning and reporting on performance to management, the
Executive Committee and the Board. Three of the Group's APMs, underlying EBITDA,
basic underlying EPS and ROCE, link to the Group's strategy and form part of the
executive directors' and senior management's remuneration targets.
The most significant APMs used by the Group are described below, together with a
reconciliation to the equivalent IFRS Accounting Standards measure.
Thereconciliations are based on Group figures, unless otherwise stated.
Thereporting segment equivalent APMs are measured in a consistent manner.
Certain APMs use trailing 12-month amounts, which represent the sum or average
(as applicable for trailing 12-month average capital employed and trailing 12
-month average net debt) of the preceding 12 months.
APM description Financial Closest IFRS equivalent
and purpose statement measure
reference
Special items
Special items are Note 4 None
generally
material, non
-recurring items
that exceed
€10million. The
Audit Committee
regularly
assesses the €10
million monetary
threshold on a
net basis and
considers its
appropriateness
in the context of
both the Group as
a whole and
individual
operating segment
performance.
The Group
separately
discloses special
items on the face
of the condensed
consolidated
income statement
to assist
stakeholders in
understanding the
underlying
financial
performance
achieved by the
Group ona basis
that is
comparable
fromyeartoyear.
Examples of
special item
charges or
credits include,
but are not
limited to,
significant
restructuring
programmes,
impairment of
assets or cash
-generating
units, costs
associated with
potential and
achieved
acquisitions,
profits or losses
from the disposal
of businesses,
and the
settlement of
significant
litigation or
claims.
Subsequent
adjustments to
items previously
recognised as
special items,
including any
related credits
received in later
periods, continue
to be reported as
specialitems in
future periods
even if they do
not exceed the
quantitative
reporting
threshold.
Subsequent
adjustments to
items, or charges
and credits on
items that are
closely related,
which previously
did not qualify
for reporting as
special items,
continue to be
reported within
underlying result
even if the
cumulative net
charge/credit
over time exceeds
the €10 million
quantitative
reporting
threshold.
Underlying EBITDA
Operating profit Condensed Operating profit
before special consolidated
items, income
depreciation, statement
amortisation and
impairments not
recorded as
special items
provides a
measure of the
Group's cash
-generating
ability that is
comparable from
year to year.
Underlying EBITDA
margin
Underlying EBITDA None
expressed as a
percentage of
Group revenue
(segment revenue
for operating
segments)
provides a
measure of the
Group's cash
-generating
ability relative
to revenue.
APM calculation:
€million, unless Six months Six months ended
otherwise stated ended 30June2025
30June2026
Underlying EBITDA 379 564
(see condensed
consolidated
income statement)
Group revenue 3,975 3,909
(see condensed
consolidated
income statement)
Underlying EBITDA 9.5 14.4
margin (%)
Underlying
operating profit
Operating profit Condensed Operating profit
before special consolidated
items provides a income
measure of the statement
Group's operating
performance that
is comparable
from year to
year.
Underlying profit
before tax
Profit before tax Condensed Profit before tax
and special consolidated
items. Underlying income
profit before tax statement
provides a
measure of the
Group's
profitability
before tax that
is comparable
from year to
year.
Effective tax
rate
Underlying tax None
charge expressed
as a percentage
of underlying
profit before
tax.
A measure of the
Group's tax
charge relative
to its profit
before tax
expressed on an
underlying basis.
APM calculation:
€million, unless Six months Six months ended
otherwise stated ended 30June2025
30June2026
Tax charge before 17 61
special items
(see condensed
consolidated
income statement)
Underlying profit 80 272
before tax (see
condensed
consolidated
income statement)
Effective tax 21 22
rate (%)
Underlying
earnings (and per
share measure)
Net profit after Note 6 Profit for
tax before the period
special items attributable
that is to
attributable to shareholders
shareholders. (and per
share
Underlying measure)
earnings (and the
related per share
measure based on
the basic,
weighted average
number of
ordinary shares
outstanding)
provides a
measure of the
Group's earnings.
Headline earnings
(and per share
measure)
The presentation Note 6 Profit for
of headline the period
earnings (and the attributable
related per share to
measure based on shareholders
the basic, (and per
weighted average share
number of measure)
ordinary shares
outstanding) is
mandated under
the Listings
Requirements of
the JSE Limited
and is calculated
in accordance
with Circular
1/2023, `Headline
Earnings', as
issued by the
South African
Institute of
Chartered
Accountants.
Capital employed
(and related
trailing 12-month
average capital
employed)
Capital employed Total equity
comprises total
equity and net
debt. Trailing 12
-month average
capital employed
isthe average
monthly capital
employed over the
last 12 months
adjusted for
spend on major
capital
expenditure
projects which
are not yet in
production.
These measures
provide the level
of invested
capital in the
business.
Trailing 12-month
average capital
employed is used
in the
calculation of
return on capital
employed.
APM calculation:
€ million Six months Six months Year ended 31December
ended ended 2025
30June2026 30June2025
Total equity (see 4,989 5,234 5,200
condensed
consolidated
statement of
financial
position)
Net debt (see 2,632 2,639 2,599
note 10c)
Capital employed 7,621 7,873 7,799
Return on capital
employed (ROCE)
Trailing 12-month None
underlying
operating profit,
including share
of associates'
and joint
ventures' net
profit/(loss),
divided by
trailing 12-month
average capital
employed. ROCE
provides a
measure of the
efficient and
effective use of
capital in the
business.
APM calculation:
€million, unless Six months Six months Year ended 31December
otherwise stated ended ended 2025
30June2026 30June2025
Trailing 12-month 311 579 497
underlying
operating profit
Trailing 12-month (2) (1) (1)
underlying net
loss from joint
ventures
Trailing 12-month 309 578 496
underlying profit
from operations
and joint
ventures
Trailing 12-month 7,689 6,865 7,417
average capital
employed (see
note 3)
ROCE (%) 4.0 8.4 6.7
Net debt (and
related trailing
12-month average
net debt)
A measure Note 10c None
comprising short
-, medium- and
long-term
interest-bearing
borrowings and
the fair value
ofdebt-related
derivatives less
cash and cash
equivalents, net
of overdrafts,
and current
financial
assetinvestments.
Net debt provides
a measure of the
Group's net
indebtedness or
overall leverage.
Trailing 12-month
average net debt
is the average
monthly net debt
over the last 12
months.
Net debt to
underlying EBITDA
Net debt divided None
by trailing 12
-month underlying
EBITDA. A measure
of the Group's
net indebtedness
relative to its
cash-generating
ability.
APM calculation:
€million, unless Six months Six months Year ended 31December
otherwise stated ended ended 2025
30June2026 30June2025
Net debt (see 2,632 2,639 2,599
note 10c)
Trailing 12-month 816 1,048 1,001
underlying EBITDA
Net debt to 3.2 2.5 2.6
underlying EBITDA
(times)
Production statistics
Six months Six months ended 30June2025
ended
30June2026
Containerboard 000 1,430 1,302
tonnes
Kraft paper 000 652 629
tonnes
Uncoated fine 000 476 467
paper tonnes
Pulp 000 1,992 1,950
tonnes
Internal 000 1,652 1,593
consumption tonnes
Market pulp 000 340 357
tonnes
Corrugated million 1,277 1,118
solutions m²
Paper bags million 3,008 2,961
units
Consumer million 891 939
flexibles m²
Functional million 1,576 1,609
paper and m²
films
Forward-looking statements
This document includes forward-looking statements. All statements other than
statements of historical facts included herein, including, without limitation,
those regarding Mondi's financial position, business strategy, market growth and
developments, expectations of growth and profitability and plans and objectives
of management for future operations, are forward-looking statements. Forward
-looking statements are sometimes identified by the use of forward-looking
terminology such as "believe", "expects", "may", "will", "could", "should",
"shall", "risk", "intends", "estimates", "aims", "plans", "predicts",
"continues", "assumes", "positioned" or "anticipates" or the negative thereof,
other variations thereon or comparable terminology. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of Mondi, or
industry results, to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. Such forward-looking statements and other statements contained in
this document regarding matters that are not historical facts involve
predictions and are based on numerous assumptions regarding Mondi's present and
future business strategies and the environment in which Mondi will operate in
the future. These forward-looking statements speak only as of the date on which
they are made.
No assurance can be given that such future results will be achieved; various
factors could cause actual future results, performance or events to differ
materially from those described in these statements. Such factors include in
particular but without any limitation: (1) operating factors, such as continued
success of manufacturing activities and the achievement of efficiencies therein,
continued success of product development plans and targets, changes in the
degree of protection created by Mondi's patents and other intellectual property
rights and the availability of capital on acceptable terms; (2) industry
conditions, such as strength of product demand, intensity of competition,
prevailing and future global market prices for Mondi's products and raw
materials and the pricing pressures thereto, financial condition of the
customers, suppliers and the competitors of Mondi and potential introduction of
competing products and technologies by competitors; and (3) general economic
conditions, such as rates of economic growth in Mondi's principal geographical
markets or fluctuations of exchange rates and interest rates.
Mondi expressly disclaims a) any warranty or liability as to accuracy or
completeness of the information provided herein; and b) any obligation or
undertaking to review or confirm analysts' expectations or estimates or to
update any forward-looking statements to reflect any change in Mondi's
expectations or any events that occur or circumstances that arise after the date
of making any forward-looking statements, unless required to do so by the
Disclosure Guidance and Transparency Rules, the UK Market Abuse Regulation or
applicable law or any regulatory body applicable to Mondi, including the JSE
Limited, the FCA and the LSE.
Any reference to future financial performance included in this announcement has
not been reviewed or reported on by the Group's auditors.
Editors' notes
Mondi is a global leader in packaging and paper, contributing to a better world
by producing products that are sustainable by design. We employ 24,000 people in
more than 30 countries and operate an integrated business with expertise
spanning the entire value chain, enabling us to offer our customers a broad
range of innovative solutions for consumer and industrial end-use applications.
Sustainability is at the centre of our strategy, with our ambitious commitments
to 2030 focused on circular driven solutions, created by empowered people,
taking action on climate.
In 2025, Mondi had revenues of €7.7 billion and underlying EBITDA of €1.0
billion. Mondi is listed on the London Stock Exchange in the ESCC category
(MNDI). It also has a secondary listing on the JSE Limited (MNP).
mondigroup.com
Sponsor in South Africa: J.P. Morgan Equities South Africa (Pty) Ltd
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