Mondi (LSE:MNDI), the global sustainable packaging and paper producer, posted underlying EBITDA of €379 million for the six months ended 30 June, down from €564 million in the first half of 2025.
The figure includes a €35 million forestry fair value loss, driven by lower wood prices in South Africa, against an €18 million fair value gain a year earlier.
Group revenue rose to €3.975 billion from €3.909 billion, lifted by the acquired Schumacher plants and higher organic sales volumes, though average selling prices remained below prior-year levels despite price increases implemented during the period.
Basic underlying earnings fell to 11.6 euro cents per share from 42.7 euro cents, while cash generated from operations dipped to €347 million from €416 million.
The company declared an interim dividend of 9.42 euro cents per share, down from 23.33 euro cents, reflecting one-third of last year's full-year payout.
Special items totalled a €320 million pre-tax charge, including a €206 million impairment at the Duino recycled containerboard mill in Italy, where weak market growth and industry overcapacity have cut expected returns.
Mondi trimmed 2026 capital expenditure guidance to around €500 million from €550 million and now expects full-year depreciation charges of approximately €475 million, down from €515-525 million.
Six converting plants across corrugated and flexible packaging are being closed as part of a network optimisation programme, cutting around 580 roles by year end.
"Trading momentum improved through the first half and we enter the second half with higher packaging paper prices, supported by good order books," said chief executive Andrew King.
News Intelligence what this means for the company
Mondi's underlying EBITDA collapsed 33% to €379 million in H1, as input cost inflation and persistent selling-price weakness overwhelmed modest revenue growth and volume gains. The company is now writing down its Duino recycled containerboard mill by €206 million—signalling structural weakness in that segment—and cutting 580 jobs across six converting plants, while trimming 2026 capex by €50 million and halving its interim dividend to 9.42 cents per share.
The earnings collapse and asset impairment expose Mondi to a structural margin squeeze: even with price increases implemented during H1, selling prices remain below year-ago levels, and the company is now rationing capital and headcount rather than investing for growth. The dividend cut signals management expects sustained pressure on cash generation.
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