Mondi first-half profit up by 11%

Packaging manufacturer Mondi has announced a rise in first-half profit of 11%, due to an increase in consumer business volumes. David Hathorn (pictured), Mondi CEO, said in a statement:

"We saw strong contributions from consumer packaging, uncoated fine paper and the South Africa division, partially offset by the anticipated price weakness in certain of our packaging paper grades."

The Johannesburg-based company further noted that earnings per share, excluding one-time items, rose to EURO75 cents a share from EURO67.8 cents a year previously. It also declared an interim dividend of EURO18.81 cents a share, compared with 14.38 cents a year earlier. Sales declined to EURO3.3bn.

Mondi, which was spun out of Anglo American Plc in 2007, has its roots in printing paper, though it currently receives the bulk of its revenue from packaging products. The company announced two consumer packaging acquisitions in recent months, including an agreement to buy 90% of Turkish producer Kalenobel for some EURO90 million, and a deal for Russia's ZAO Uralplastic-N.