Mondi Plc - Final Results
PR Newswire
LONDON, United Kingdom, February 19
Mondi plc
(Incorporated in England and Wales) ISIN: GB00BMWC6P49
(Registered number: 6209386) LSE share code: MNDI
LEI: 213800LOZA69QFDC9N34 JSE share code: MNP
This announcement contains inside information
19 February 2026
Resilient full year performance; Actions taken to drive value;
Strongly positioned to capture upside
Mondi, a global leader in the production of sustainable packaging and paper, today announces its results for the 12 months to 31 December 2025.
Andrew King, Mondi Group Chief Executive Officer, commented:
"Our industry continues to work through a prolonged cyclical downturn, yet we delivered a resilient full year financial performance, achieving underlying EBITDA of €1,001 million. This reflects the strength of our cost advantaged and integrated assets, our quality product offering, the commitment of our people and the targeted strategic actions taken to enhance our competitive advantage.
"We have intensified our focus on operational excellence and cost discipline. Bringing together Corrugated Packaging and Uncoated Fine Paper has streamlined our organisation and accelerated the delivery of operational synergies. Our cost-out programmes continue to deliver tangible results and the integration of Schumacher is capturing additional synergies. At the same time, we are proactively optimising our production footprint, including the recently announced closures of three plants across our paper bags and corrugated solutions network.
"We have also taken clear and disciplined decisions on capital allocation. Following a period of investment into our structurally growing markets, we are now prioritising maintenance capital expenditure and cost-optimisation opportunities. Furthermore, the Board is recommending to bring the dividend back in line with our cover policy. Combined with our robust financial position and proactive liquidity management, these actions put us on a strong footing for the year ahead and position us well for the future.
"Going into 2026, it remains unclear when geopolitical and macroeconomic conditions will improve. Paper prices are modestly lower, on average, than those seen in the final quarter of 2025. We are, however, confident in our ability to navigate these headwinds effectively through disciplined volume growth as we leverage our recent capacity expansions, strong margin management and cost optimisation.
"We remain confident in the structural growth drivers that underpin our packaging businesses and Mondi is strongly positioned to capture the upside as market conditions improve. Our innovative packaging and paper solutions, cost advantaged and integrated assets, and disciplined approach to capital allocation position the Group well to deliver long-term value for our shareholders."
Financial summary
€ million, unless otherwise stated | Year ended 31 December 2025 | Year ended 31 December 2024 | Change % | Six months ended 31 December 2025 (H2 2025) | Six months ended 30 June 2025 (H1 2025) |
Group revenue | 7,663 | 7,416 | 3 | 3,754 | 3,909 |
Underlying EBITDA 1 | 1,001 | 1,049 | (5) | 437 | 564 |
Forestry fair value gain | 39 | 7 | 21 | 18 | |
Underlying EBITDA excluding forestry fair value gain 1 | 962 | 1,042 | 416 | 546 | |
Underlying EBITDA margin 1 | 13.1% | 14.1% | 11.6% | 14.4% | |
Profit before tax | 269 | 378 | (29) | ||
| |||||
Basic underlying earnings per share (euro cents) 1 | 56.5 | 82.7 | (32) | ||
Basic earnings per share (euro cents) | 37.4 | 49.1 | (24) | ||
Total ordinary dividend per share (euro cents) | 28.25 | 70.00 | |||
Cash generated from operations | 1,072 | 970 | 11 | ||
Net debt to underlying EBITDA (times) 1 | 2.6 | 1.7 | |||
| |||||
Return on capital employed (ROCE) 1 | 6.7% | 9.6% |
1 The Group presents certain measures that are not defined or specified according to International Financial Reporting Standards. Refer to the Alternative Performance Measures (APMs) 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 7881 455 806
Mondi Group: Group Communication Director
Richard Mountain +44 790 968 4466
FTI Consulting
The person responsible for arranging the release of this announcement on behalf of Mondi plc is Jenny Hampshire, Company Secretary.
Results presentation details
A webinar will be held today at 08:30 (GMT), 09:30 (CET), 10:30 (SAST).
Event registration link: https://storm-virtual-uk.zoom.us/webinar/register/WN_mGNmWdnpQVeTZgwz7wLvWQ
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 hours after the end of the live results presentation at:
https://www.mondigroup.com/investors/results-reports-and-presentations/
For any queries, please email ir@mondigroup.com
Delivering value-accretive growth, sustainably
Fragile consumer and industrial confidence driven by macroeconomic uncertainty and geopolitical tensions continue to weigh on demand in many of our core markets. These cyclical pressures have been exacerbated by the current supply side changes in capacity, notably in recycled containerboard and pulp, which have seen significant net capacity additions, and in uncoated fine paper, where industry supply side responses to weaker market demand proved to be inadequate. In contrast, virgin containerboard and kraft paper - where Mondi is a market leader - have seen limited supply growth.
Despite the current pressures, we remain confident that the structural growth drivers for sustainable packaging remain intact, underpinned by the continued growth in eCommerce and the transition to circular solutions, driven by both customer preference and regulation. The move to more sustainable packaging continues and we see ever greater engagement from our customers to develop new sustainable solutions which they can implement at scale.
Mondi is unique. We have the scale and capability to produce a broad range of corrugated and flexible packaging solutions that customers truly need. Our teams combine materials knowledge with operational and commercial excellence to deliver high-quality products. We help customers transition to recyclable, paper-based and high-performance alternatives that meet rising sustainability expectations without compromising protection or efficiency. From virgin packaging for food safety compliance, to ultra-strong paper bags for industrial applications and a full range of boxes and bags for eCommerce. Our innovation capabilities extend to advanced solutions combining paper, functional barriers and seals for use in FMCG and pet food packaging.
Our offering is underpinned by cost-advantaged pulp and paper mills located close to raw material sources and a well-positioned, integrated converting network that optimises logistics and operational efficiency. These factors create a strong competitive advantage and enable Mondi to cost effectively deliver innovative, sustainable products of the highest quality and reliability.
We will continue to grow sustainable packaging across our two complementary business units leveraging our cost-advantaged, integrated assets and our leading market positions.
In Corrugated Packaging, we are focused on optimising and developing our strength in Europe and adjacent geographies, leveraging our upstream paper platform and recently enlarged converting network. We continue to optimise our uncoated fine paper assets, tightly manage costs and maintain market leadership positions.
In Flexible Packaging we pursue segment-differentiated growth. In industrial end markets we continue to grow globally as a high quality, global leader in sack kraft paper and industrial bags, with significant integration and scale advantage. In consumer applications, including speciality kraft paper, MailerBags and consumer flexibles, we seek to leverage our capabilities and leading market positions in complex packaging solutions across a range of substrates focused in Europe and North America.
We remain confident in our strategy and in the long-term structural growth drivers of our packaging businesses. At the same time, we recognise the near-term challenges and associated risks across our markets. In response, we have acted quickly and decisively to support earnings, cashflow and liquidity - actions that continue to strengthen the Group in the short term and will drive stronger returns as market conditions improve.
Decisive actions to drive value and enhance competitive advantage
With some of the most productive and lowest cost pulp and paper mills in Europe, we already benefit from strong cost leadership, further strengthened by an integrated business model offering significant value chain synergies. However, we have taken decisive actions to go further, driving cost advantage and improving the efficiency and competitiveness of the Group.
1. Accelerating operational excellence programmes to drive productivity and efficiency
Operational excellence is core to Mondi's competitive strength and sustainable growth. It defines how we run our business every day, eliminating productivity losses, improving efficiency and enabling our people to deliver consistent, high-quality performance across the value chain. As an example, these actions have resulted in improved productivity across our paper bag converting plants by 5% in 2025 when compared to 2024.
We are accelerating our approach to operational excellence with new programmes driving a zero-loss productivity mindset and a disciplined, systematic way of operating. We are optimising processes, lowering costs and strengthening asset reliability, which is lifting right-first-time performance, reducing lead times and deepening customer trust. These gains create a lasting structural advantage: faster innovation cycles, higher energy and resource efficiency and production that adapts more flexibly to customer needs.
One year into this multi-year programme, momentum is building. An early adopter was a production line at a containerboard mill which has already reduced unscheduled operating downtime and improved total efficiency by 3% above the historic average. There are further improvements to come across all our production lines as we adopt this systematic approach to operational excellence.
2. Delivering efficiency gains through plant network optimisation
Our ongoing commitment to improving productivity, enhancing cost advantage and ensuring our network remains fit for the future has led us to close 22 converting plants in the last ten years. We follow a disciplined approach to allocating capital where growth potential is strongest and customer demand greatest. We prioritise more efficient sites and superior service to our customers.
We have announced the closure of three further sites in the last three months, a corrugated solutions plant in Turkiye and paper bag plants in Hungary and Germany. We will continue to serve our customers out of alternative plants in our network, which have the required know-how and capacity to ensure a smooth and seamless transition.
The integration of Schumacher Packaging's Western Europe Packaging Assets (Schumacher) has further strengthened our corrugated solutions network. It is enabling greater optimisation across our footprint and unlocking efficiencies that support our long-term growth. We are confident in the delivery of €32 million cost synergies over the three years from completion, an increase from the €22 million initially envisaged.
3. Focused fixed cost control
We continue to execute targeted cost-out initiatives with a clear mandate: drive efficiency, eliminate non-essential activities and strengthen the core revenue-generating areas of the business.
While we have increased headcount to support capacity expansion projects and respond to higher customer demand, we have streamlined the overhead structure and operational headcount where appropriate. Over the past 12 months we have reduced headcount by approximately 1,000, driven from greater efficiency in our operations, plant closures, and a 13% reduction in our Group Services offices. The three recently announced plant closures will further reduce headcount by approximately 200. We are continually looking to drive additional efficiencies across our network.
We combined Corrugated Packaging and Uncoated Fine Paper into a single business unit. This facilitates a more streamlined organisation supporting faster decision making, cost take-out and delivery of operational synergies across our pulp and paper mills while retaining our customer focused value chain orientation.
Driving cash generation and disciplined capital allocation
We intensified our focus on cash generation during 2025 and generated higher cash from operations of €1,072 million (2024: €970 million) driven by a strong focus on working capital management.
During the year, we invested €673 million in property, plant and equipment (2024: €933 million) which included spend on previously approved and now completed major capacity expansion projects. Capital expenditure for 2026 is expected to be approximately €550 million, lower than the €650 million previously guided. This will focus on maintenance and targeted cost-optimisation opportunities including enhancing energy efficiency, improving productivity and strengthening the resilience of our asset base. Importantly, this reduction does not compromise safety, asset integrity or our ability to capture the upside as markets recover.
We have a robust financial position with no financial covenants and an investment grade credit rating. Our upcoming bond maturity in April 2026 has been refinanced by a €550 million Eurobond issued in October 2025, with no further debt maturity until 2028.
The Board has recommended a total ordinary dividend for 2025 of 28.25 euro cents per share, reflecting a return to the Group's stated dividend cover policy of two to three times underlying earnings on average through cycle.
Delivering a differentiated customer value proposition
We see ever greater engagement from customers to develop sustainable solutions which they can implement at scale.
To support our continued growth in eCommerce we have combined our sales teams across corrugated and flexible packaging to provide a single point of entry for customers as their packaging needs evolve.
We are consistently innovating and exchanging know-how across the Group to deliver the widest range of recyclable, paper-based and high-performance solutions, as recognised by the nine WorldStar Packaging awards for innovation we won this year. We are working to offer our customers a circular solution for 100% of our packaging and paper products by 2030.
Our operational excellence programmes enhance our customer offering by focusing on right-first-time performance, reduced production lead times and more flexibility. These programmes will also drive greater energy efficiency improving our sustainability impact and supporting customers' Scope 3 commitments.
Strongly positioned to capitalise as markets recover
We are very proud of our teams for completing the build and start-up phase of the recent major capacity expansion projects on time and on budget. Our focus is now on delivering full productivity ramp-up, executing our commercial strategy, driving cash generation and delivering strong returns.
Similarly, the integration of Schumacher and delivery of associated cost synergies is progressing well, with the focus going forward on leveraging the expanded geographic footprint and well-invested asset base to drive profitable growth.
While the current cyclical downturn is proving more protracted than those seen in the past, we are confident in our ability to navigate this effectively through disciplined volume growth as we leverage our recent capacity expansions, strong margin management and cost optimisation.
We remain confident in the structural growth drivers that underpin our packaging businesses and Mondi is strongly positioned to capture the upside as market conditions improve. Our innovative packaging and paper solutions, cost-advantaged and integrated value chain, and disciplined approach to capital allocation position the Group to deliver long-term value for our shareholders.
Group performance
Group revenue of €7,663 million was up on the prior year (2024: €7,416 million) driven by higher sales volumes and the revenue contribution from the Schumacher acquisition, despite sharply lower uncoated fine paper and pulp selling prices. Underlying EBITDA was lower than the prior year at €1,001 million (2024: €1,049 million) due to margin pressure associated with the challenging trading conditions. The Group's underlying EBITDA margin was 13.1% (2024: 14.1%).
Pricing across all input cost categories was stable in 2025 compared to the prior year mirroring the muted economic backdrop. Total input costs were higher year on year as a result of higher volumes both organically and from acquisitions. In early 2026 input costs are broadly stable and similar to average 2025 levels.
Total maintenance costs were broadly similar to the prior year. These included the impact from planned maintenance shuts of which the majority were completed in the second half of the year. In 2026, we expect a similar phasing of planned maintenance shuts as in 2025, with a total estimated underlying EBITDA impact of around €100 million.
Personnel costs were higher year on year driven by the inclusion of Schumacher's cost base following the acquisition as well as inflationary cost pressures. Other operating expenses were flat on a comparative basis, testament to our continued focus on cost control and driving efficiency improvements.
Currency movements had a net neutral impact on underlying EBITDA compared to the prior year. The negative impact from a weaker US dollar in the current year was offset by the non-recurrence of the loss recognised in 2024 from the devaluation of the Egyptian pound.
Depreciation, amortisation and impairment underlying charges were higher at €504 million (2024: €443 million) as a result of the start up of a number of capital investment projects in the year and the inclusion of the acquired Schumacher plants. We expect these charges in 2026 to be marginally higher, at around €515-525 million, due to annualising effects.
Net finance costs of €112 million were above the prior year (2024: €70 million) due to a higher average net debt balance and higher interest costs from refinancing. In 2026, we expect net finance costs of around €125 million due to higher average net debt.
The underlying tax charge for the year was €91 million, giving an effective tax rate of 24% (2024: €117 million, 22%). In 2026, we expect an effective tax rate of around 25%.
A special item pre-tax charge of €106 million (2024: €150 million) was recognised in the year. €18 million of restructuring and closure costs, and €57 million of impairment charges were incurred from optimising our converting plant network, streamlining overhead costs and impairing converting assets in emerging Europe, including in Turkiye where economic and inflationary pressures are impacting profitability. In addition, it includes €24 million of transaction-related costs and €7 million of additional costs relating to special items initially reported in 2024.
Basic underlying earnings per share were 56.5 euro cents (2024: 82.7 euro cents) reflecting the lower underlying earnings compared to 2024. After taking special items into account, basic earnings per share were 37.4 euro cents (2024: 49.1 euro cents).
Cash flow
Cash generated from operations was higher than the previous year at €1,072 million (2024: €970 million) driven by strong working capital management as reflected in a working capital cash inflow in the year of €83 million.
Investment in property, plant and equipment of €673 million in the year (2024: €933 million) was lower than the previously guided €750-850 million driven by our ongoing focus on cash management.
The acquisition of Schumacher completed on 31 March 2025 and comprised a total cash consideration of €506 million and net debt of €103 million.
The total cash outflow in the year from special items totalled €47 million.
Tax paid was €87 million (2024: €120 million) and interest paid was €95 million (2024: €79 million), including derivative interest.
The Group paid ordinary dividends of €305 million. This, together with dividends paid to non-controlling interests in the year of €47 million, resulted in dividend payments totalling €352 million in the year.
Liquidity, treasury and borrowings
Net debt at 31 December 2025 was €2,599 million, with net debt to underlying EBITDA at 2.6 times (31 December 2024: €1,732 million, 1.7 times). The increase in net debt and related leverage year on year was mainly due to investment into the business including the acquisition of Schumacher and major capital investment projects. Our financing agreements do not contain financial covenants.
Mondi's available liquidity at 31 December 2025 was €1,292 million, comprising the undrawn Syndicated Revolving Credit Facility (RCF) of €1,000 million and cash and cash equivalents of €292 million.
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.
During the year we increased our Syndicated RCF by €250 million from €750 million up to €1 billion, effective from January 2025 and in March 2025 issued a 3.750% €600 million Eurobond with an 8-year tenor, thereby strengthening liquidity and extending the Group's debt maturity profile. In addition, the Group issued a 3.375% €550 million Eurobond with a 5-year tenor in October 2025 in order to refinance the Group's only significant near-term debt maturity being the Eurobond maturing in April 2026. Following this issuance, the Group early settled €321 million of the Eurobond maturing in April 2026. The Group intends to settle the remaining balance of €279 million on maturity using existing facilities. The weighted average maturity of our committed debt facilities at the end of the year was 4.8 years.
Business unit review
The Group has reorganised its business units during the year and combined the Uncoated Fine Paper business unit with Corrugated Packaging to form an enlarged Corrugated Packaging business unit.
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 and percentage | Year ended 31 December 2025 | Year ended 31 December 2024 (restated) | Change % | Six months ended 31 December 2025 (H2 2025) | Six months ended 30 June 2025 (H1 2025) (restated) |
Segment revenue | 3,775 | 3,519 | 7 | 1,882 | 1,893 |
Underlying EBITDA | 458 | 526 | (13) | 174 | 284 |
Forestry fair value gain | 39 | 7 | 21 | 18 | |
Underlying EBITDA excluding forestry fair value gain | 419 | 519 | 153 | 266 | |
Underlying EBITDA margin (%) | 12.1% | 14.9% | 9.2% | 15.0% | |
Capital employed | 4,265 | 3,742 | |||
ROCE (%) | 4.4% | 8.5% |
Corrugated Packaging delivered underlying EBITDA of €458 million and margin of 12.1% (2024: €526 million, 14.9%). Containerboard achieved sales volume growth and delivered higher average selling prices compared to 2024. Corrugated Solutions' performance was lower year on year with lower margins more than offsetting box volume growth. Uncoated fine paper and pulp pricing was significantly below the prior year's averages, impacting the overall business unit's performance. This lower pricing effect, together with the impact from scheduled maintenance shuts undertaken predominantly in the second half of the year, resulted in a lower sequential half-on-half performance for Corrugated Packaging (H2 2025: €174 million, H1 2025: €284 million).
In Containerboard, our sales volumes were up on the prior year. This was driven by the growing demand from our customers for our broad range of paper grades with additional volumes fulfilled by our new capacity following major capital investment projects at our mills in Swiecie (Poland), Duino (Italy) and Kuopio (Finland). Average containerboard selling prices were higher than the prior year with achieved price increases in the first half of the year followed by price reductions in the second half of the year and in early 2026.
Corrugated Solutions achieved 2% organic box volume growth compared to 2024 driven by demand for sustainable packaging solutions for consumer end-use applications. In addition, the Schumacher acquisition completed on 31 March 2025 with its results included for nine months of the year. This acquisition further strengthens our customer offering with a broader geographic reach. Overall, margins were lower than the prior year as a result of labour cost inflation and higher paper input costs which were not able to be passed through pricing due to intense competition in key markets.
In Uncoated Fine Paper, and against a backdrop of weaker market demand, the business delivered broadly stable sales volumes, successfully increasing market share, testament to its strong customer offering. Average selling prices were however significantly lower than the prior year as industry supply side responses to the weaker market demand proved inadequate.
Pulp prices were, on average, significantly lower year on year, with prices rising modestly in early 2025 but decreasing sharply at the end of the first half of the year and remaining under pressure during the second half.
The forestry fair value gain was higher at €39 million in the year (2024: €7 million).
Return on capital employed (ROCE) was lower than the prior year at 4.4% (2024: 8.5%) 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 in the year.
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 and percentage | Year ended 31 December 2025 | Year ended 31 December 2024 | Change % | Six months ended 31 December 2025 (H2 2025) | Six months ended |
Segment revenue | 3,941 | 3,964 | (1) | 1,897 | 2,044 |
Underlying EBITDA | 583 | 558 | 4 | 281 | 302 |
Underlying EBITDA margin (%) | 14.8% | 14.1% | 14.8% | 14.8% | |
Capital employed | 3,622 | 3,418 | |||
ROCE (%) | 10.4% | 11.5% |
Flexible Packaging's underlying EBITDA was higher at €583 million with margin of 14.8% (2024: €558 million, 14.1%) as good cost control and sales volume growth in paper bags mitigated the impact of lower kraft paper volumes. Consumer Flexibles and Functional Paper and Films delivered good, resilient performances supported by our focus on high-margin products. Flexible Packaging's underlying EBITDA was down in the second half of the year compared to the first half, impacted by scheduled mill maintenance shuts and a slowdown in demand relative to the strong start to the year.
In Kraft Paper, we successfully ramped up volumes at our new paper machine at our Steti mill (Czech Republic). Overall kraft paper sales volumes were lower compared to the prior year driven by softer market demand and the loss of volumes from the Stambolijski mill (Bulgaria) that stopped operating in the second half of 2024.
Paper Bags delivered a good performance with sales volumes up 5% on the prior year. This was supported by good demand for construction and building material bags in emerging markets, solid demand for traditional industrial end uses in Europe, and good growth in eCommerce solutions in Europe and the US.
Average pricing across the kraft paper and paper bag value chain was broadly similar year on year with price increases in the first half of the year offset by price reductions in the second half. Kraft paper prices in 2026 are currently lower than 2025 average prices.
Consumer Flexibles and Functional Paper and Films continued to provide our customers with a broad range of innovative and sustainable packaging solutions, supported by a number of recently completed investments which enhance our capabilities and consolidate our leading positions in our chosen markets.
Principal risks
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, over the course of the year, 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.
Risk management is by its nature a dynamic and ongoing process. Risk management is of key importance given the diversity of the Group's locations, markets and production processes. Our internal controls aim to provide reasonable assurance as to the accuracy, reliability and integrity of our financial information, non-financial disclosures and the Group's compliance with applicable laws, regulations and internal policies as well as the effectiveness of internal processes.
The Group's most significant risks are long-term in nature. We assess and update our principal risks throughout the year to reflect the developments in our strategic priorities and Board discussions on principal and emerging risks.
The Group utilises a four-point risk appetite rating scale against which the residual risk of each principal risk can be considered. Where a difference is identified between the risk appetite and residual risk rating, the risk owner provides an explanation for and a chosen approach to address the differential to the Executive Committee and the Board.
A detailed risk assurance map is used to present our principal risks to the Board, Audit Committee and Sustainable Development Committee, facilitating comprehensive discussions on risk. The Board, in combination with the Audit Committee, is satisfied that the review performed has enhanced the Group's approach to risk management. The Group remains committed to the continuous improvement of risk assessment, risk management and risk reporting.
Key changes in the year
The key changes to the Group's principal risks identified during 2025 are set out below.
The country risk was derated with an assessed decrease in impact. The derating reflects the change in geographic capital allocation over recent years. This is supported by the Group's recent capital investment projects and acquisitions in low risk countries, which contributes to lowering the Group's country risk profile.
The cost and availability of raw materials risk was derated with a decreased likelihood due to the improved fibre security outlook. This conclusion follows a review of current wood market supply and demand, which reflects reduced demand and supports the expectation that the risk around availability of fibre has reduced.
In 2025, significant cyber security incidents were reported in the media, particularly related to large corporates based in the United Kingdom. The Group continues to focus on cyber security risk, with emphasis on maintaining effective detective and preventative controls to mitigate this risk to levels consistent with the Group's risk appetite. The residual risk rating remains unchanged however, as an elevated level of focus is maintained for this risk.
We acknowledge that geopolitical uncertainties continue to affect business confidence and levels of economic activity. The Group continues to embed geopolitical risk and related effects on production, supply chains and customers within our principal risks.
Emerging risks
On 31 March 2025, the Group completed the Schumacher acquisition. Since acquisition, the Group has focused on integrating the business. The risks related to the acquisition include the integration of a private company into a public company environment, the scale of the acquisition, the need to integrate IT systems and controls, and the combining of different corporate cultures. The Board continues to monitor the integration and is confident that the integration risks are being well mitigated, and that continued inclusion as an emerging risk and not as a principal risk is the correct judgement.
The Group's recent major capacity expansion projects were built on time, on budget and are operational. Our focus is now on achieving full productivity ramp-up, executing our commercial strategy, driving cash generation and delivering returns. The emerging risk concerning the start-up and commercial ramp-up of major capital projects has evolved in 2025 to focus on the commercial ramp-up of major capital projects. Commercial ramp-up is planned in detail from initial project inception and amended for market conditions once start-up is complete. Post-investment reviews are conducted on major capital investments to evaluate the project execution against the plan and identify lessons learnt. We continue to monitor and mitigate potential risks relating to the commercial ramp-up of major capital projects.
Strategic risks
The industries and geographies in which we operate expose us to specific long-term risks which are accepted by the Board as a consequence of the Group's chosen strategy and operating footprint.
We continue to monitor recent capacity announcements, demand developments and how consumers are demanding more sustainable packaging. We continue to develop our understanding of climate change risks and its impact whilst continuing to improve our disclosures and responses.
The Executive Committee and the Board monitor our exposure to these risks and evaluate investment decisions against our overall exposures so that our strategic capital allocation takes advantage of the opportunities arising from our deliberate exposure to such risks.
Our principal strategic risks relate to the following:
• Industry productive capacity
• Product substitution
• Fluctuations and variability in selling prices or gross margins
• Country risk
• Climate change risks
Financial risks
We aim to maintain an appropriate capital structure and to manage our financial risk exposures in compliance with all laws and regulations.
An attentive approach to financial risk management remains in response to tax risks and ongoing short-term currency volatility.
Our principal financial risks relate to the following:
• Capital structure
• Currency risk
• Tax risk
Operational risks
As a Group we focus on operational excellence and investment in our people and are committed to the responsible use of resources.
Our investments to improve our energy efficiency, engineer out our most significant safety risks and improve operating efficiencies reduce the likelihood of operational risk events.
Our principal operational risks relate to the following:
• 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
We have a zero tolerance approach to non-compliance. Our strong culture and values underpin our approach. These are emphasised in every part of our business with a focus on integrity, honesty and transparency.
Our principal compliance risk relates to reputational risk.
A more detailed description of our principal risks can be found in the Group's 2024 Integrated Report. The 2025 Integrated Report is planned to be published in March 2026.
Going concern
The directors have reviewed the Group's budget and considered the assumptions contained in the budget, including consideration of the principal risks which may impact the Group's performance in the 18 months following the balance sheet date and considerations of the period immediately thereafter.
The Group has a robust balance sheet. At 31 December 2025, the Group had a liquidity position of €1,292 million, comprising €1,000 million of undrawn committed debt facilities and cash and cash equivalents of €292 million available. As the Group's debt facilities and loan agreements contain no financial covenants, in performing its going concern assessment the directors have focused on liquidity.
The Board believes that the Group's financial position, supported by its investment grade credit ratings from Moody's (Baa1, outlook negative) and Standard & Poor's (BBB, outlook stable), ensures the Group has access to funding through the going concern period.
The current and possible future impact from the macroeconomic environment on the Group's activities and performance has been considered by the Board in preparing its going concern assessment. The base case forecasts for the Group, being those arising over the 18-month going concern assessment period as reflected in the Group's 2026-2028 plan, were sensitised to reflect a severe but plausible downside scenario on Group performance.
The scenario testing assumed severe but plausible volume and margin reductions happening in combination and was carried out against Mondi's current committed debt facilities. During the year, the Group successfully refinanced the Group's €600 million Eurobond maturing in April 2026 through issuance of a new bond, thereby removing the need for any refinancing assumption in the going concern period. This testing does not incorporate any mitigation actions such as reductions and deferrals of capital and operational expenditure or cash preservation responses, which the Group would implement in the event of severe and extended revenue decline.
In the severe but plausible downside scenario, the Group has sufficient liquidity headroom throughout the entire period covered by the going concern assessment.
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. The test was conducted based on the Group's current committed debt facilities, with no assumption of refinancing for any facilities maturing during the assessment period. A decline of 100% of the planned underlying EBITDA in the period until 30 June 2027, meaning no EBITDA generation at all, well in excess of that contemplated in the severe but plausible downside scenario, would need to persist throughout the observed period to result in no liquidity headroom, which is considered very unlikely. This reverse stress test also 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.
Following its 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 year ended 31 December 2025.
Audited financial information
The condensed consolidated financial statements and notes 1 to 18 for the year ended 31 December 2025 are derived from the Group annual financial statements which have been audited by PricewaterhouseCoopers LLP. The unmodified audit report is available for inspection at the Group's registered office.
Condensed consolidated income statement
for the year ended 31 December 2025
2025 | 2024 | ||||||
€ million | Notes | Underlying | Special items(Note 4) | Total | Underlying | Special items(Note 4) | Total |
Group revenue | 3 | 7,663 | - | 7,663 | 7,416 | - | 7,416 |
Materials, energy and consumables used | (3,876) | - | (3,876) | (3,696) | - | (3,696) | |
Variable selling expenses | (680) | - | (680) | (645) | - | (645) | |
Gross margin | 3,107 | - | 3,107 | 3,075 | - | 3,075 | |
Maintenance and other indirect expenses | (432) | - | (432) | (425) | - | (425) | |
Personnel costs | (1,345) | (19) | (1,364) | (1,228) | (18) | (1,246) | |
Other net operating expenses | (329) | (28) | (357) | (373) | (58) | (431) | |
EBITDA | 3 | 1,001 | (47) | 954 | 1,049 | (76) | 973 |
Depreciation, amortisation and impairments | (504) | (59) | (563) | (443) | (74) | (517) | |
Operating profit | 3 | 497 | (106) | 391 | 606 | (150) | 456 |
Net loss from joint ventures | (1) | - | (1) | (3) | - | (3) | |
Net finance costs | (112) | - | (112) | (70) | - | (70) | |
Investment income | 12 | - | 12 | 30 | - | 30 | |
Foreign currency gains/(losses) | 2 | - | 2 | (3) | - | (3) | |
Finance costs | (126) | - | (126) | (97) | - | (97) | |
Net monetary loss arising from hyperinflationary economies | (9) | - | (9) | (5) | - | (5) | |
Profit before tax | 375 | (106) | 269 | 528 | (150) | 378 | |
Tax (charge)/credit | 6 | (91) | 19 | (72) | (117) | 1 | (116) |
Profit for the year | 284 | (87) | 197 | 411 | (149) | 262 | |
Attributable to: | |||||||
Non-controlling interests | 35 | (3) | 32 | 44 | - | 44 | |
Shareholders | 249 | (84) | 165 | 367 | (149) | 218 | |
Earnings per share (EPS) attributable to shareholders | |||||||
euro cents | |||||||
Basic EPS | 7 | 37.4 | 49.1 | ||||
Diluted EPS | 7 | 37.4 | 49.1 | ||||
Basic underlying EPS | 7 | 56.5 | 82.7 | ||||
Diluted underlying EPS | 7 | 56.5 | 82.6 | ||||
Condensed consolidated statement of comprehensive income
for the year ended 31 December 2025
2025 | 2024 | |||||
€ million | Before tax amount | Tax charge | Net of tax amount | Before tax amount | Tax credit | Net of tax amount |
Profit for the year | 197 | 262 | ||||
Items that may subsequently be or have been reclassified to the condensed consolidated income statement | ||||||
Fair value losses arising from cash flow hedges | - | - | - | (2) | 1 | (1) |
Exchange differences on translation of non-euro operations | (4) | - | (4) | 75 | - | 75 |
Items that will not subsequently be reclassified to the condensed consolidated income statement | ||||||
Remeasurements of retirement benefits plans | 8 | (2) | 6 | (2) | - | (2) |
| ||||||
Other comprehensive income/(expense) for the year | 4 | (2) | 2 | 71 | 1 | 72 |
Other comprehensive income/(expense) attributable to: | ||||||
Non-controlling interests | (5) | 11 | ||||
Shareholders | 7 | 61 | ||||
Total comprehensive income attributable to: | ||||||
Non-controlling interests | 27 | 55 | ||||
Shareholders | 172 | 279 | ||||
Total comprehensive income for the year | 199 | 334 | ||||
Condensed consolidated statement of financial position
as at 31 December 2025
€ million | Notes | 2025 | 2024 |
Property, plant and equipment | 5,751 | 5,160 | |
Goodwill | 893 | 767 | |
Intangible assets | 110 | 70 | |
Forestry assets | 9 | 511 | 503 |
Investments in joint ventures | 10 | 5 | |
Financial instruments | 25 | 29 | |
Deferred tax assets | 22 | 22 | |
Net retirement benefits asset | - | 3 | |
Other non-current assets | 2 | 3 | |
Total non-current assets | 7,324 | 6,562 | |
Inventories | 1,213 | 1,194 | |
Trade and other receivables | 1,290 | 1,275 | |
Current tax assets | 21 | 22 | |
Financial instruments | 4 | 10 | |
Cash and cash equivalents | 13b | 292 | 278 |
Total current assets | 2,820 | 2,779 | |
Total assets | 10,144 | 9,341 | |
Short-term borrowings | 10 | (344) | (63) |
Trade and other payables | (1,366) | (1,281) | |
Current tax liabilities | (60) | (67) | |
Provisions | (59) | (65) | |
Financial instruments | (14) | (9) | |
Total current liabilities | (1,843) | (1,485) | |
Medium- and long-term borrowings | 10 | (2,538) | (1,952) |
Net retirement benefits liability | 11 | (151) | (161) |
Deferred tax liabilities | (346) |
(342) | |
Non-current tax liabilities | (4) | - | |
Provisions | (34) | (32) | |
Other non-current liabilities | (28) | (19) | |
Total non-current liabilities | (3,101) | (2,506) | |
Total liabilities | (4,944) | (3,991) | |
Net assets | 5,200 | 5,350 | |
Equity | |||
Share capital | 97 | 97 | |
Own shares | (16) | (20) | |
Retained earnings | 4,449 | 4,582 | |
Other reserves | 197 | 198 | |
Total attributable to shareholders | 4,727 | 4,857 | |
Non-controlling interests in equity | 473 | 493 | |
Total equity | 5,200 | 5,350 |
The Group's condensed consolidated financial statements, including related notes 1 to 18, were authorised for issue by the Board on 18 February 2026 and were signed on its behalf by:
Andrew KingMike Powell
Director Director
Condensed consolidated statement of changes in equity
for the year ended 31 December 2025
€ million | Equity attributable to shareholders | Non-controlling interests | Total |
At 1 January 2024 | 5,655 | 441 | 6,096 |
Total comprehensive income for the year: | 279 | 55 | 334 |
Profit for the year | 218 | 44 | 262 |
Other comprehensive income | 61 | 11 | 72 |
Hyperinflation monetary adjustments | 7 | - | 7 |
Transactions with shareholders in their capacity as shareholders | |||
Dividends | (1,081) | (6) | (1,087) |
Purchases of own shares | (12) | - | (12) |
Mondi share schemes' charge | 9 | - | 9 |
Injection from non-controlling interests | - | 3 | 3 |
At 31 December 2024 | 4,857 | 493 | 5,350 |
Total comprehensive income for the year: | 172 | 27 | 199 |
Profit for the year | 165 | 32 | 197 |
Other comprehensive income/(expense) | 7 | (5) | 2 |
Hyperinflation monetary adjustments | 1 | - | 1 |
Transactions with shareholders in their capacity as shareholders | |||
Dividends (see note 8) | (305) | (47) | (352) |
Purchases of own shares | (8) | - | (8) |
Mondi share schemes' charge | 10 | - | 10 |
At 31 December 2025 | 4,727 | 473 | 5,200 |
Equity attributable to shareholders
€ million | 2025 | 2024 | At 1 January 2024 |
Share capital | 97 | 97 | 97 |
Own shares | (16) | (20) | (17) |
Retained earnings | 4,449 | 4,582 | 5,434 |
Cumulative translation adjustment reserve | (456) | (456) | (520) |
Post-retirement benefits reserve | (56) | (59) | (53) |
Share-based payment reserve | 15 | 19 | 19 |
Cash flow hedge reserve | - | - | 1 |
Merger reserve | 667 | 667 | 667 |
Other sundry reserves | 27 | 27 | 27 |
Total | 4,727 | 4,857 | 5,655 |
Condensed consolidated statement of cash flows
for the year ended 31 December 2025
€ million | Notes | 2025 | 2024 |
Cash flows from operating activities | |||
Cash generated from operations | 13a | 1,072 | 970 |
Dividends received from other investments | 1 | 1 | |
Income tax paid | (87) | (120) | |
Net cash generated from operating activities | 986 | 851 | |
Cash flows from investing activities | |||
Investment in property, plant and equipment | 3 | (673) | (933) |
Investment in intangible assets | (17) | (13) | |
Investment in forestry assets | 9 | (50) | (48) |
Proceeds from the disposal of property, plant and equipment | 18 | 17 | |
Acquisition of businesses, net of cash and cash equivalents | 12 | (496) | (6) |
Interest received | 10 | 32 | |
Other investing activities | 7 | 15 | |
Net cash used in investing activities | (1,201) | (936) | |
Cash flows from financing activities | |||
Proceeds from issue of Eurobond | 13c | 1,139 | 496 |
Repayment of Eurobond | 13c | (321) | (500) |
Proceeds from medium- and long-term borrowings | 13c | 307 | 215 |
Repayment of medium- and long-term borrowings | 13c | (296) | (215) |
Proceeds from short-term borrowings | 13c | 11 | 9 |
Repayment of short-term borrowings | 13c | (77) | (18) |
Repayment of lease liabilities | 13c | (36) | (26) |
Interest paid | 13c | (56) | (44) |
Dividends paid to shareholders | 8 | (305) | (1,081) |
Dividends paid to non-controlling interests | (47) | (6) | |
Purchases of own shares | (8) | (12) | |
Injection from non-controlling interests | - | 3 | |
Net cash outflow from debt-related derivative financial instruments | 13c | (66) | (47) |
Net cash generated from/(used in) financing activities | 245 | (1,226) | |
| |||
Net increase/(decrease) in cash and cash equivalents | 30 | (1,311) | |
Cash and cash equivalents at beginning of year | 269 | 1,592 | |
Cash movement in the year | 13c | 30 | (1,311) |
Effects of changes in foreign exchange rates | 13c | (8) | (12) |
Cash and cash equivalents at end of year | 13b | 291 | 269 |
Notes to the condensed consolidated financial statements
for the year ended 31
December 2025
1Basis of preparation
These condensed consolidated financial statements as at and for the year ended 31 December 2025 comprise Mondi plc and its subsidiaries (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 derived from the audited consolidated financial statements of the Group, 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 Group's condensed consolidated financial statements do not contain sufficient information to comply with International Financial Reporting Standards (IFRS Accounting Standards).
The financial information set out in these condensed consolidated financial statements does not constitute the Company's statutory accounts for the years ended 31 December 2025 or 2024 but is derived from those accounts. Statutory accounts for 2024 have been delivered to the Registrar of Companies, and those for 2025 will be delivered in due course. 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. Copies of the unqualified auditors' report on the Integrated report and financial statements 2025 are available for inspection at the registered office of Mondi plc.
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.
2Accounting policies
The same accounting policies and Alternative Performance Measures (APMs), methods of computation and presentation have been followed in the preparation of the condensed consolidated financial statements for the year ended 31 December 2025 as were applied in the preparation of the Group's annual financial statements for the year ended 31 December 2024, except for the amendments to IAS 12 which became effective for the financial year beginning on 1 January 2025. The Group did not have to change its accounting policies or make any retrospective adjustments as a result of adopting this amendment.
Alternative Performance Measures
The Group presents certain measures of financial performance and position that are not defined or specified according to IFRS Accounting Standards and UK-adopted International Accounting Standards. These measures, referred to as Alternative Performance Measures, are defined at the end of this document.
3Operating 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. These segments are managed based on the nature of the products produced by each business and comprise two distinct segments (2024: three). The segment information also includes APMs as defined at the end of this document.
With effect from 1 October 2025, the Group reorganised its operating segments to facilitate a more streamlined organisation supporting faster decision-making, cost take-out and delivery of operational synergies across our pulp and paper mills, while retaining its customer-focused value chain orientation. As part of this reorganisation, the former Uncoated Fine Paper operating segment has been combined with Corrugated Packaging to form a single enlarged Corrugated Packaging operating segment. The aggregation is consistent with the management approach under IFRS 8 and reflects how the Group is managed internally. Flexible Packaging remains unchanged as a separate segment. Comparative segment information for prior periods has been restated to reflect the new operating segment structure. The reorganisation had no impact on the Group's overall result.
Year ended 31 December 2025
€ million, unless otherwise stated | Corrugated Packaging | Flexible Packaging | Corporate | Intersegment elimination | Total |
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, amortisation and impairments | (280) | (223) | (1) | - | (504) |
Underlying operating profit/(loss) | 178 | 360 | (41) | - | 497 |
Special items before tax (see note 4) | (67) | (39) | - | - | (106) |
Capital employed | 4,265 | 3,622 | (88) | - | 7,799 |
Trailing 12-month average capital employed | 4,048 | 3,445 | (76) | - | 7,417 |
Additions to non-current non-financial assets | 961 | 381 | - | - | 1,342 |
Investment in property, plant and equipment | 325 | 348 | - | - | 673 |
Underlying EBITDA margin (%) | 12.1 | 14.8 | - | - | 13.1 |
Return on capital employed (%) | 4.4 | 10.4 | - | - | 6.7 |
Average number of employees (thousands) 1 | 10.2 | 11.8 | 0.1 | - | 22.1 |
1 Presented on a full-time employee equivalent basis.
Year ended 31 December 2024 (restated)
€ million, unless otherwise stated | Corrugated Packaging | Flexible Packaging | Corporate | Intersegment elimination | Total |
Segment revenue | 3,519 | 3,964 | - | (67) | 7,416 |
Internal revenue | (30) | (37) | - | 67 | - |
External revenue | 3,489 | 3,927 | - | - | 7,416 |
Underlying EBITDA | 526 | 558 | (35) | - | 1,049 |
Depreciation, amortisation and impairments | (239) | (203) | (1) | - | (443) |
Underlying operating profit/(loss) | 287 | 355 | (36) | - | 606 |
Special items before tax | (5) | (132) | (13) | - | (150) |
Capital employed | 3,742 | 3,418 | (78) | - | 7,082 |
Trailing 12-month average capital employed | 3,358 | 3,051 | (126) | - | 6,283 |
Additions to non-current non-financial assets | 506 | 565 | - | - | 1,071 |
Investment in property, plant and equipment | 415 | 518 | - | - | 933 |
Underlying EBITDA margin (%) | 14.9 | 14.1 | - | - | 14.1 |
Return on capital employed (%) | 8.5 | 11.5 | - | - | 9.6 |
Average number of employees (thousands) 1 | 9.1 | 12.0 | 0.1 | - | 21.2 |
1 Presented on a full-time employee equivalent basis.
External revenue by location of contribution and by location of customer
External revenue by location of contribution | External revenue by location of customer | |||
€ million | 2025 | 2024 | 2025 | 2024 |
Western Europe | ||||
Austria | 1,179 | 1,175 | 159 | 166 |
Germany | 810 | 555 | 1,121 | 932 |
UK | 22 | 3 | 231 | 196 |
Rest of Western Europe | 787 | 721 | 1,768 | 1,620 |
Western Europe total | 2,798 | 2,454 | 3,279 | 2,914 |
Emerging Europe | ||||
Czech Republic | 760 | 705 | 260 | 264 |
Poland | 1,418 | 1,347 | 716 | 729 |
Turkiye | 410 | 490 | 451 | 533 |
Rest of emerging Europe | 854 | 919 | 533 | 543 |
Emerging Europe total | 3,442 | 3,461 | 1,960 | 2,069 |
Africa | ||||
South Africa | 567 | 667 | 413 | 489 |
Rest of Africa | 70 | 80 | 343 | 366 |
Africa total | 637 | 747 | 756 | 855 |
North America | 674 | 648 | 888 | 850 |
South America | 9 | 7 | 138 | 93 |
Asia and Australia | 103 | 99 | 642 | 635 |
Total Group revenue | 7,663 | 7,416 | 7,663 | 7,416 |
4Special 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 | 2025 | 2024 |
Operating special items | ||
Impairment of assets | (59) | (74) |
Restructuring and closure costs: | ||
Personnel costs | (19) | (18) |
Other restructuring and closure costs | (4) | (40) |
Costs relating to the acquisition of Schumacher Packaging | (24) | (5) |
Costs relating to the aborted all-share combination with DS Smith plc | - | (13) |
Total special items before tax | (106) | (150) |
Tax credit (see note 6) | 19 | 1 |
Total special items | (87) | (149) |
Attributable to: | ||
Non-controlling interests | (3) | - |
Shareholders | (84) | (149) |
In line with the Group's ongoing commitment to improving productivity, enhancing its cost advantage and ensuring a future-fit network, the Group has taken action to optimise its converting plant network and streamline overhead costs. Actions include the initiation of plant closures in Corrugated Packaging, where the Group has announced the closure of a corrugated solutions plant within its Turkish network, and in Flexible Packaging, where the Group has announced plans to close paper bags plants in Hungary and Germany, with customers being transitioned to larger, more efficient plants nearby. Alongside the plant closures, the Group has intensified its focus on cost discipline and proactively managing workforce by reducing headcount across its business units and corporate functions. In doing so, the Group naturally ensures compliance with applicable local legal requirements and, where required under local law, the Group carries out the appropriate information and/or consultation procedures with employee representative bodies. Additionally, the Group has impaired assets in emerging Europe, including in Turkiye where economic and inflationary pressures are impacting profitability.
This gave rise to €18 million of restructuring and closure costs, and €57 million of impairment charges. The total charge has been allocated between the two business units, with €43 million attributable to Corrugated Packaging (thereof impairment of assets of €29 million) and €32 million to Flexible Packaging (thereof impairment of assets of €28 million). The Group expects additional costs associated with the Group's ongoing restructuring and optimisation measures to be incurred in 2026.
In addition to the above, further special items were recognised in 2025 in relation to actions that took place in 2024 as set out below.
- Corrugated Packaging:
- Transaction costs of €24 million were recognised in 2025 in relation to the acquisition of the Western Europe Packaging Assets of Schumacher Packaging. Total costs were €29 million, of which €5 million was recognised in the second half of 2024 (see note 12).
- Flexible Packaging:
- A paper bags plant in Maastricht (Netherlands) was closed in 2024. A release of restructuring and closure provisions of €1 million was recognised in 2025. Including the €13?million recognised in 2024, total costs related to the closure amounted to €12?million.
- A paper bags plant in Pine Bluff (USA) was closed in 2024, with €5 million of restructuring and closures costs recognised in 2025, in addition to the €9 million recognised in 2024, bringing total costs related to the closure to €14 million.
- Following the fire at the Stambolijski paper mill (Bulgaria) in September 2024, restructuring and closure costs of €1 million and asset impairments of €2 million were recognised in 2025. This is in addition to the €37?million of restructuring and closure costs and €73?million of asset impairments recognised in 2024. In total, costs related to the closure amounted to €113?million.
The operating special items resulted in a cash outflow from operating activities of €47 million for the year ended 31 December 2025 (2024: €34 million).
5Write-down of inventories to net realisable value
€ million | 2025 | 2024 |
Within materials, energy and consumables used | ||
Write-down of inventories to net realisable value | (61) | (69) |
Aggregate reversal of previous write-downs of inventories | 52 | 49 |
6Taxation
The Group's effective rate of tax before special items for the year ended 31 December 2025 was 24% (2024: 22%).
€ million | 2025 | 2024 |
UK corporation tax at 25% (2024: 25%) | 2 | 4 |
Overseas tax | 86 | 105 |
Current tax in respect of the prior years | (1) | (4) |
Current tax | 87 | 105 |
Deferred tax in respect of the current year | 20 | 10 |
Deferred tax in respect of the prior years | (14) | (5) |
Deferred tax attributable to a change in the rate of domestic income tax | (2) | 7 |
Tax charge before special items | 91 | 117 |
Current tax on special items | (3) | - |
Deferred tax on special items | (16) | (1) |
Tax credit on special items (see note 4) | (19) | (1) |
Tax charge for the year | 72 | 116 |
Current tax charge | 84 | 105 |
Deferred tax (credit)/charge | (12) | 11 |
As the Group operates in a number of countries, each with different tax systems, a degree of tax risk is inevitable, as tax laws are complex and subject to changes in legislation and to differing interpretations. Consequently, provision has been made for such tax risk exposures within current tax liabilities of €38 million (2024: €40 million), mainly in relation to transfer pricing risks arising from cross-border transactions. There is not expected to be any material change to the tax risk exposures or associated provisions within the next 12 months.
7Earnings per share (EPS)
EPS attributable to shareholders | ||
euro cents | 2025 | 2024 |
Basic EPS | 37.4 | 49.1 |
Diluted EPS | 37.4 | 49.1 |
Basic underlying EPS | 56.5 | 82.7 |
Diluted underlying EPS | 56.5 | 82.6 |
Basic headline EPS | 48.1 | 60.8 |
Diluted headline EPS | 48.1 | 60.8 |
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 | 2025 | 2024 |
Profit for the year attributable to shareholders | 165 | 218 |
Special items attributable to shareholders (see note 4) | 103 | 150 |
Related tax (see note 4) | (19) | (1) |
Underlying earnings | 249 | 367 |
Net gain on disposal of property, plant and equipment | (2) | (12) |
Insurance reimbursements for property damages | (1) | (3) |
Restructuring and closure costs (see note 4) | (23) | (58) |
Costs relating to the aborted all-share combination with DS Smith plc (see note 4) | - | (13) |
Costs relating to the acquisition of Schumacher Packaging (see note 4) | (24) | (5) |
Gain on purchase of business before transaction-related costs | - | (13) |
Impairments not included in special items | 1 | - |
Loss arising from sale and leaseback transaction | - | 3 |
Related tax | 12 | 4 |
Headline earnings for the year | 212 | 270 |
Underlying earnings and headline earnings represent APMs which are defined at the end of this document.
| Weighted average number of shares | |
million | 2025 | 2024 |
Basic number of ordinary shares outstanding | 440.8 | 444.0 |
Effect of dilutive potential ordinary shares | - | 0.1 |
Diluted number of ordinary shares outstanding | 440.8 | 444.1 |
The weighted average number of shares was prospectively adjusted from 13 February 2024 to reflect the share consolidation and special dividend following the sale of the Group's Russian assets, which together were accounted for as a share repurchase at fair value, as described in note 9 of the Group's Integrated report and financial statements 2024.
8Dividends
An interim dividend for the year ended 31 December 2025 of 23.33 euro cents per ordinary share was paid on Friday 26 September 2025 to those shareholders on the register of Mondi plc on Friday 22 August 2025.
A proposed final dividend for the year ended 31 December 2025 of 4.92 euro cents per ordinary share will be paid on Thursday 7 May 2026 to those shareholders on the register of Mondi plc on Friday 27 March 2026.
The final ordinary dividend proposed has been recommended by the Board and is subject to shareholder approval at the Annual General Meeting scheduled for Friday 24 April 2026.
2025 | 2024 | |||
euro cents per share | € million | euro cents per share | € million | |
Final ordinary dividend paid in respect of the prior year | 46.67 | 202 | 46.67 | 209 |
Special dividend | - | - | 160.00 | 769 |
Interim ordinary dividend paid in respect of the current year | 23.33 | 103 | 23.33 | 103 |
Total ordinary and special dividends paid | 305 | 1,081 | ||
Final ordinary dividend proposed to shareholders | 4.92 | 22 | 46.67 | 206 |
On 13 February 2024, the Group returned the net proceeds from the sale of the Group's Russian assets to shareholders by way of a special dividend of €1.60 per ordinary share.
Dividend timetable
The proposed final dividend for the year ended 31 December 2025 of 4.92 euro cents per share will be paid in accordance with the following timetable:
Last date to trade shares cum-dividend | |
JSE Limited | Tuesday 24 March 2026 |
London Stock Exchange | Wednesday 25 March 2026 |
Shares commence trading ex-dividend | |
JSE Limited | Wednesday 25 March 2026 |
London Stock Exchange | Thursday 26 March 2026 |
Record date | Friday 27 March 2026 |
Last date for receipt of Dividend Reinvestment Plan (DRIP) elections by Central Securities Depository Participants | Thursday 2 April 2026 |
Last date for DRIP elections to UK Registrar and South African Transfer Secretaries | |
South African Register | Tuesday 7 April 2026 |
UK Register | Thursday 16 April 2026 |
Annual General Meeting | Friday 24 April 2026 1 |
Payment date | Thursday 7 May 2026 |
DRIP purchase settlement date (subject to market conditions and the purchase of shares in the open market) | |
UK Register | Monday 11 May 2026 |
South African Register | Wednesday 13 May 2026 |
DRIP results announcement | Thursday 21 May 2026 |
Currency conversion date | |
ZAR/euro | Thursday 19 February 2026 |
Euro/sterling | Tuesday 21 April 2026 |
1 Results of the Annual General Meeting to be held are expected to be released on or around Friday 24 April 2026.
Share certificates on Mondi plc's South African register may not be dematerialised or rematerialised between Wednesday 25 March 2026 and Friday 27 March 2026, both dates inclusive, nor may transfers between the UK and South African registers of Mondi plc take place between Wednesday 18 March 2026 and Friday 27 March 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 19 February 2026.
9Forestry assets
€ million | 2025 | 2024 |
At 1 January | 503 | 519 |
Investment in forestry assets | 50 | 48 |
Fair value gains | 39 | 7 |
Disposal of assets | (1) | - |
Felling costs | (85) | (92) |
Currency movements | 5 | 21 |
At 31 December | 511 | 503 |
Mature | 392 | 371 |
Immature | 119 | 132 |
The fair value of forestry assets is a level 3 measure in terms of the fair value measurement hierarchy (see note 16), consistent with prior years. The fair value of forestry assets is determined using a market based approach.
10Borrowings
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 rate % | 2025 | 2024 |
Financing facilities | ||||
Syndicated Revolving Credit Facility 1 | June 2028 | EURIBOR + margin | 1,000 | 750 |
€600 million Eurobond | April 2026 | 1.625% | 279 | 600 |
€750 million Eurobond | April 2028 | 2.375% | 750 | 750 |
€550 million Eurobond | May 2031 | 3.375% | 550 | - |
€500 million Eurobond | May 2032 | 3.750% | 500 | 500 |
€600 million Eurobond | May 2033 | 3.750% | 600 | - |
Long-Term Facility Agreement | December 2026-June 2031 | Various | 20 | 13 |
Total committed facilities | 3,699 | 2,613 | ||
Drawn | (2,699) | (1,863) | ||
Total committed facilities available | 1,000 | 750 |
1 Increased from €750 million to €1 billion on 2 January 2025.
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.
The RCF incorporates key sustainability targets linked to MAP2030, classifying the facility as a Sustainability-Linked Loan. Under the terms of the agreement, the margin is adjusted according to the Group's performance against specified sustainability targets.
In March 2025, the Group issued a €600 million 8-year Eurobond maturing in May 2033 at a coupon of 3.750% per annum. In October 2025, the Group issued a €550 million 5-year Eurobond maturing in May 2031 at a coupon of 3.375% per annum. Both Eurobonds were issued under the Group's Guaranteed Euro Medium Term Note Programme, and the proceeds were used for general corporate purposes and refinancing of existing indebtedness. In October 2025, following a tender offer, the Group repaid €321 million of the €600 million Eurobond maturing in April 2026.
Short-term liquidity needs are met by cash and the RCF. As at 31 December 2025, 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).
2025 | 2024 | |||||
€ million | Current | Non-current | Total | Current | Non-current | Total |
Secured | ||||||
Lease liabilities | 39 | 145 | 184 | 24 | 104 | 128 |
Total secured | 39 | 145 | 184 | 24 | 104 | 128 |
Unsecured | ||||||
Bonds | 279 | 2,384 | 2,663 | - | 1,842 | 1,842 |
Bank loans and overdrafts | 26 | 9 | 35 | 39 | 6 | 45 |
Total unsecured | 305 | 2,393 | 2,698 | 39 | 1,848 | 1,887 |
Total borrowings | 344 | 2,538 | 2,882 | 63 | 1,952 | 2,015 |
11Retirement benefits
All assumptions related to the Group's defined benefit schemes and post-retirement medical plan liabilities were re-assessed individually for the year ended 31 December 2025. The net retirement benefits liability decreased by €10 million, primarily due to changes in assumptions and exchange rate movements. The net retirement benefits asset decreased by €3 million following the completion of a buy-out of the Group's largest UK pension scheme in 2025. The assets backing the defined benefit scheme liabilities reflect their market values as at 31 December 2025. Net remeasurement gains arising from changes in assumptions and return on plan assets, after tax, amounting to €6 million have been recognised in the condensed consolidated statement of comprehensive income.
12Business combinations
To 31 December 2025
On 31 March 2025, the Group completed the acquisition of Schumacher Packaging's Western Europe Packaging Assets (Schumacher) for a total cash consideration of €506 million.
The acquisition complements Mondi's Corrugated Packaging operations in Europe by expanding its geographic reach in Western Europe. It provides strong integration benefits with Mondi's containerboard operations and includes two state-of-the-art mega-box plants in Germany, securing significant capacity for Mondi to continue to meet growing demand for sustainable packaging.
Since the date of acquisition, Schumacher has contributed €292 million of revenue and incurred a loss after tax of €29 million, which are included in the Group's condensed consolidated income statement. Had the acquisition been completed on 1 January 2025, the Group's consolidated revenue and profit after tax for year ended 31 December 2025 (after special items) would have been €7,770 million and €197 million, respectively.
The Group incurred total transaction costs of €29 million, of which €24 million was recognised in 2025 and €5 million in the second half of 2024. The transaction costs were treated as a special item and recorded within other net operating expenses in the condensed consolidated income statement (see note 4).
Details of the net assets acquired, as adjusted from book to fair value, are as follows:
€ million | Fair value |
Net assets acquired | |
Property, plant and equipment | 375 |
Intangible assets | 43 |
Inventories | 47 |
Trade and other receivables | 62 |
Cash and cash equivalents | 10 |
Assets held for sale | 1 |
Total assets | 538 |
Trade and other payables | (50) |
Income tax liabilities | (1) |
Deferred tax liabilities | (10) |
Other provisions | (1) |
Total liabilities | (62) |
Short-term borrowings | (72) |
Medium- and long-term borrowings | (41) |
Debt assumed | (113) |
Net assets acquired | 363 |
Goodwill arising on acquisition | 129 |
Purchase price adjustment receivable | 14 |
Cash acquired net of overdrafts | (10) |
Net cash paid per consolidated statement of cash flows | 496 |
The acquisition included several legal entities and was executed through a combination of share and asset deals. The acquisition constitutes a business accounted for under IFRS 3, 'Business Combinations'. The share deals involved 100% of the voting equity interests in the entities with the exception of a few entities with immaterial non-controlling interests. The non-controlling interests for these entities were recognised as the proportion of the fair values of the assets and liabilities recognised at acquisition.
The fair values of assets acquired and liabilities assumed in business combinations are level 3 measures in terms of the fair value measurement hierarchy. The assets were measured at fair value using relevant valuation methods accepted under IFRS 13, 'Fair Value Measurement', with related deferred tax adjustments.
Property, plant and equipment were measured using valuation techniques appropriate to each asset class. Land was valued using the market approach, which reflects current market prices for comparable properties. Buildings were assessed using the income approach, based on the present value of expected future cash flows attributable to these assets. Equipment was measured using the cost approach, which considers the replacement cost of a similar asset, adjusted for depreciation, physical deterioration and economic obsolescence. Management has considered the impact of environmental and climate risks on the estimated fair values of the acquired property, plant and equipment and concluded that these factors did not have a material impact.
Intangible assets, primarily customer relationships, were measured using the multi-period excess earnings method. This approach estimates fair value by projecting future cash flows attributable to the asset and deducting charges for contributory assets required to support those cash flows. The valuation incorporates key assumptions regarding revenue growth, EBITDA margins, customer attrition rates, discount rates, expected future tax obligations and contributory asset charges.
The purchase price adjustment receivable of €14 million, which is recognised in other receivables, relates to the finalisation of the purchase price and was settled in February 2026. The adjustment is based on the closing accounts prepared in accordance with the sale and purchase agreement, reflecting the actual cash, debt and working capital positions as of 31 March 2025.
On this basis, goodwill of €129 million was determined based on the fair values of the net assets acquired and was fully allocated to the Corrugated Packaging operating segment. The goodwill is attributable to identified cost synergies, a broad range of capabilities in production and associated services, and the expansion of the product range and geographic reach of the Group's Corrugated Packaging business. The total amount of goodwill that is expected to be deductible for tax purposes is €100 million.
To 31 December 2024
On 5 February 2024, the Group announced the completion of the acquisition of Hinton Pulp mill in Alberta (Canada) from West Fraser Timber Co. Ltd. Details of this business combination were disclosed in note 26 of the Group's Integrated report and financial statements 2024.
13Consolidated cash flow analysis
(a)Reconciliation of profit before tax to cash generated from operations
€ million | 2025 | 2024 |
Profit before tax | 269 | 378 |
Depreciation and amortisation | 503 | 443 |
Impairment of property, plant and equipment (not included in special items) | 1 | - |
Share-based payments | 10 | 9 |
Net cash flow effect of current and prior year special items | 59 | 116 |
Net finance costs | 112 | 70 |
Net monetary loss arising from hyperinflationary economies | 9 | 5 |
Net loss from joint ventures | 1 | 3 |
(Decrease)/increase in provisions | (6) | 13 |
Decrease in net retirement benefits | (6) | (8) |
Net movement in working capital | 83 | (108) |
Decrease/(increase) in inventories | 51 | (70) |
Increase in operating receivables | (55) | (140) |
Increase in operating payables | 87 | 102 |
Fair value gains on forestry assets | (39) | (7) |
Felling costs | 85 | 92 |
Net gain on disposal of property, plant and equipment | (2) | (12) |
Insurance reimbursements for property damages | (1) | (13) |
Other adjustments | (6) | (11) |
Cash generated from operations | 1,072 | 970 |
(b)Cash and cash equivalents
€ million | 2025 | 2024 |
Cash and cash equivalents per condensed consolidated statement of financial position | 292 | 278 |
Bank overdrafts included in short-term borrowings | (1) | (9) |
Cash and cash equivalents per condensed consolidated statement of cash flows | 291 | 269 |
The cash and cash equivalents of €292 million (2024: €278 million) include money market funds of €84 million (2024: €50 million) valued at fair value through profit and loss, with the remaining balance carried at amortised cost with fair values approximate to the carrying values presented.
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 | Cash and cash equivalents | Current financial asset investments | Debt due within1 year1 | Debt due after 1 year | Debt-related derivative financial instruments | Total net debt |
At 1 January 2024 | 1,592 | 1 | (559) | (1,460) | 7 | (419) |
Cash flow | (1,311) | - | 535 | (496) | 47 | (1,225) |
Cash movement in the year | (1,311) | - | - | - | - | (1,311) |
Proceeds from Eurobonds | - | - | - | (496) | - | (496) |
Repayment of Eurobonds | - | - | 500 | - | - | 500 |
Proceeds from borrowings | - | - | (9) | (215) | - | (224) |
Repayment of borrowings | - | - | 18 | 215 | - | 233 |
Repayment of lease liabilities | - | - | 26 | - | - | 26 |
Net cash outflow from debt-related derivative financial instruments | - | - | - | - | 47 | 47 |
Additions to lease liabilities | - | - | (11) | (19) | - | (30) |
Disposal of lease liabilities | - | - | - | 2 | - | 2 |
Movement in unamortised loan costs | - | - | - | (2) | - | (2) |
Net movement in fair value of derivative financial instruments | - | - | - | - | (49) | (49) |
Reclassification | - | - | (25) | 25 | - | - |
Currency movements | (12) | (1) | 6 | (2) | - | (9) |
At 31 December 2024 | 269 | - | (54) | (1,952) | 5 | (1,732) |
Cash flow | 30 | - | 423 | (1,150) | 66 | (631) |
Cash movement in the year | 30 | - | - | - | - | 30 |
Proceeds from Eurobonds | - | - | - | (1,139) | - | (1,139) |
Repayment of Eurobonds | - | - | 321 | - | - | 321 |
Proceeds from borrowings | - | - | (11) | (307) | - | (318) |
Repayment of borrowings | - | - | 77 | 296 | - | 373 |
Repayment of lease liabilities | - | - | 36 | - | - | 36 |
Net cash outflow from debt-related derivative financial instruments | - | - | - | - | 66 | 66 |
Additions to lease liabilities | - | - | (10) | (39) | - | (49) |
Disposal of lease liabilities | - | - | 3 | 4 | - | 7 |
Acquisitions excluding cash and overdrafts (see note 12) | - | - | (72) | (41) | - | (113) |
Movement in unamortised loan costs | - | - | - | (3) | - | (3) |
Net movement in fair value of derivative financial instruments | - | - | - | - | (80) | (80) |
Reclassification | - | - | (642) | 642 | - | - |
Currency movements | (8) | - | 9 | 1 | - | 2 |
At 31 December 2025 | 291 | - | (343) | (2,538) | (9) | (2,599) |
1 €1 million (2024: €9 million) of bank overdrafts are included in cash and cash equivalents for presentation in the condensed consolidated statement of cash flows (see note 13b), but are included in short-term borrowings in the condensed consolidated statement of financial position.
The Group incurred interest expense of €130 million (2024: €107 million) in relation to bank overdrafts, loans and lease liabilities. Included in this expense is €39 million (2024: €35 million) relating to forward exchange rates on derivative contracts and interest paid on borrowings of €56 million (2024: €44 million).
14Capital commitments
As at 31 December 2025, capital expenditure contracted for at the end of the financial year but not recognised as liabilities is €297 million (2024: €372 million).
15Contingent liabilities
The Group's contingent liabilities as at 31 December 2025 were €nil (2024: €nil). No acquired contingent liabilities have been recorded in the Group's condensed consolidated statement of financial position for either year presented.
16Fair 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 9, and certain assets acquired or liabilities assumed in a business combination, as detailed in note 12.
There have been no transfers of assets or liabilities between levels of the fair value hierarchy during the year.
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.
• The fair values of the Group's commodity price derivatives are calculated as the present value of expected future cash flows based on observable market data.
• 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 amount | Fair value | |||
€ million | 2025 | 2024 | 2025 | 2024 |
Financial liabilities | ||||
Borrowings | 2,882 | 2,015 | 2,868 | 2,010 |
17Related party transactions
The Group and its subsidiaries, in the ordinary course of business, enter into various sale, purchase and service transactions with associated undertakings in which the Group has a material interest. All related party transactions are conducted on an arm's length basis. These transactions, in total, are not considered to be significant. Transactions between Mondi plc and its subsidiaries, as well as transactions between subsidiaries, are eliminated on consolidation. There have been no significant changes to related parties as disclosed in note 32 of the Group's annual financial statements for the year ended 31 December 2024.
18Events occurring after 31 December 2025
Aside from the final ordinary dividend proposed for 2025 (see note 8), there have been no material reportable events since 31 December 2025.
Production statistics
2025 | 2024 | ||
Containerboard | 000 tonnes | 2,631 | 2,345 |
Kraft paper | 000 tonnes | 1,257 | 1,233 |
Uncoated fine paper | 000 tonnes | 917 | 938 |
Pulp | 000 tonnes | 3,775 | 3,725 |
Internal consumption | 000 tonnes | 3,118 | 3,044 |
Market pulp | 000 tonnes | 657 | 681 |
Corrugated solutions | million m 2 | 2,419 | 1,899 |
Paper bags | million units | 5,903 | 5,583 |
Consumer flexibles | million m 2 | 1,768 | 1,912 |
Functional paper and films | million m 2 | 2,960 | 3,067 |
Exchange rates
Average | Closing | |||
Versus euro | 2025 | 2024 | 2025 | 2024 |
South African rand (ZAR) | 20.18 | 19.83 | 19.44 | 19.62 |
Czech koruna (CZK) | 24.69 | 25.12 | 24.24 | 25.19 |
Polish zloty (PLN) | 4.24 | 4.31 | 4.22 | 4.28 |
Pound sterling (GBP) | 0.86 | 0.85 | 0.87 | 0.83 |
Turkish lira (TRY) 1 | 44.82 | 35.57 | 50.48 | 36.74 |
US dollar (USD) | 1.13 | 1.08 | 1.18 | 1.04 |
1 The Group has applied hyperinflation accounting for its subsidiaries in Turkiye.
Alternative Performance Measures
The Group presents certain measures of financial performance and position in the condensed consolidated financial statements that are not defined or specified according to IFRS Accounting Standards in order to provide additional performance-related measures to its stakeholders. These measures, referred to as Alternative Performance Measures (APMs), are prepared 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 comparable with similarly defined measures and disclosures applied by other companies. Such measures should not be viewed in isolation or as a substitute to 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. Two of the Group's APMs, underlying EBITDA 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. The reconciliations are based on Group figures. The reporting segment equivalent APMs are measured in a consistent manner.
APM description and purpose | Financial statement reference | Closest IFRS equivalent measure |
Special items | ||
Special items are generally material, non-recurring items that exceed €10 million. The Audit Committee regularly assesses the monetary threshold of €10 million on a net basis and considers the threshold 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 its stakeholders in understanding the underlying financial performance achieved by the Group on a basis that is comparable from year to year. 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 subsequently, continue to be reflected as special items 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 in the underlying result even if the cumulative net charge/credit over the years exceeds the €10 million quantitative reporting threshold. | Note 4 | None |
|
|
|
Underlying EBITDA | ||
Operating profit before special items, depreciation, amortisation and impairments not recorded as special items provides a measure of the cash-generating ability of the Group's operations that is comparable from year to year. | Condensed consolidated income statement | Operating profit |
|
|
|
Underlying EBITDA margin | ||
Underlying EBITDA expressed as a percentage of Group revenue (segment revenue for operating segments) provides a measure of the cash-generating ability of the Group's operations relative to revenue. | None | |
| ||
APM calculation: | ||
€ million, unless otherwise stated | 2025 | 2024 |
Underlying EBITDA (see condensed consolidated income statement) | 1,001 | 1,049 |
Group revenue (see condensed consolidated income statement) | 7,663 | 7,416 |
Underlying EBITDA margin (%) | 13.1 | 14.1 |
Underlying operating profit | ||
Operating profit before special items provides a measure of operating performance of the Group that is comparable from year to year. | Condensed consolidated income statement | Operating profit |
|
|
|
Underlying profit before tax | ||
Profit before tax and special items. Underlying profit before tax provides a measure of the Group's profitability before tax that is comparable from year to year. | Condensed consolidated income statement | Profit before tax |
|
|
|
Effective tax rate | ||
Underlying tax charge expressed as a percentage of underlying profit before tax. The underlying tax charge represents the Group's tax charge before special items. | None | |
| ||
APM calculation: | ||
€ million, unless otherwise stated | 2025 | 2024 |
Tax charge before special items (see note 6) | 91 | 117 |
Underlying profit before tax (see condensed consolidated income statement) | 375 | 528 |
Effective tax rate (%) | 24 | 22 |
Underlying earnings (and per share measure) | ||
Net profit after tax before special items arising from the Group's operations that is attributable to shareholders. Underlying 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. | Note 7 | Profit for the period attributable to shareholders (and per share measure) |
|
|
|
Headline earnings (and per share measure) | ||
The presentation of headline earnings (and the related per share measure based on the basic, weighted average number of 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. | Note 7 | Profit for the period attributable to shareholders (and per share measure) |
|
|
|
Dividend cover | ||
Basic underlying EPS divided by total ordinary dividend per share paid and proposed provides a measure of the Group's earnings relative to ordinary dividend payments. | None | |
| ||
APM calculation: | ||
euro cents, unless otherwise stated | 2025 | 2024 |
Basic underlying EPS (see note 7) | 56.5 | 82.7 |
Total ordinary dividend per share (see note 8) | 28.25 | 70.00 |
Dividend cover (times) | 2.0 | 1.2 |
Capital employed (and related trailing 12-month average capital employed) | ||
Capital employed comprises total equity and net debt. Trailing 12-month average capital employed is the 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. | Note 3 | Total equity |
|
|
|
Return on capital employed (ROCE) | ||
Trailing 12-month 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. | None | |
| ||
APM calculation: | ||
€ million, unless otherwise stated | 2025 | 2024 |
Underlying operating profit (see condensed consolidated income statement) | 497 | 606 |
Underlying net loss from joint ventures (see condensed consolidated income statement) | (1) | (3) |
Underlying profit from operations and joint ventures | 496 | 603 |
Trailing 12-month average capital employed (see note 3) | 7,417 | 6,283 |
ROCE (%) | 6.7 | 9.6 |
Net debt (and related trailing 12-month average net debt) | ||
A measure comprising short-, medium- and long-term interest-bearing borrowings and the fair value of debt-related derivatives less cash and cash equivalents, net of overdrafts, and current financial asset investments. 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. | Note 13c | None |
Net debt to underlying EBITDA | ||
Net debt divided by trailing 12-month underlying EBITDA. A measure of the Group's net indebtedness relative to its cash-generating ability. | None | |
| ||
APM calculation: | ||
€ million, unless otherwise stated | 2025 | 2024 |
Net debt (see note 13c) | 2,599 | 1,732 |
Underlying EBITDA (see condensed consolidated income statement) | 1,001 | 1,049 |
Net debt to underlying EBITDA (times) | 2.6 | 1.7 |
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 applicable law or any regulatory body applicable to Mondi, including the JSE Limited 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), where the Group is a FTSE100 constituent. It also has a secondary listing on the JSE Limited (MNP).
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