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Highlights

  • MNDI’s net cash generated from continuing activities, reached EUR 1,312 million in FY23, compared to EUR 1,292 million in FY22
  • The company’s annualized dividend yield was approx. 3.92% as per the closing of 21 May 2024
  • MNDI paid a special dividend of EUR 1.60 per share from the sale of its Russian assets

Mondi PLC (LSE: MNDI) is a UK-based, FTSE 100 listed company that specializes in designing sustainable packaging and paper solutions. It has a market capitalization of GBP 7005.82 million.

In the financial year 2023, MNDI reported a higher return on equity of 8.7% compared to the industry median of 3.7%. Similarly, it also had a higher current ratio of 2.09x versus the industry median of 1.63x.

In FY23, the company saw a rise in net cash generated from continuing activities, reaching EUR 1,312 million compared to EUR 1,292 million in FY22. Additionally, its cash and cash equivalent increased to EUR 1,592 million at the end of FY23 from EUR 1,381 million in pcp. However, due to lower sales volume and a decline in the selling prices, the group’s revenue decreased by 17.7% in the same reported period.

On 14 May 2024, the company paid a final dividend of 46.67 euro cents per share. This marked the annualized dividend yield of approx. 3.92% as per the closing of 21 May 2024.

Recent business update

As reported in its Q1 FY24 trading update, MNDI paid a special dividend of EUR 1.60 per share from the sale of its Russian assets.

Company outlook

As per the company, market demand increased in the first quarter resulting in stronger order book and increasing sales volumes across its paper grades. The company asserts to be well positioned to capitalize on the increasing demand, citing its robust operational leverage, wide-range product portfolio, and timely, on-budget execution of organic growth investment projects.

Top 10 shareholders

The top 10 shareholders of MNDI collectively own around 53.30% of the total stake in the company. The Public Investment Corporation (SOC) Limited holds majority stake in the company, accounting for around 11.05% of the total shareholding. Following closely is BlackRock Institutional Trust Company, N.A., with approximately 9.70% of the total stake, as shown in the chart below:

Stock performance

The stock price of MNDI has witnessed a surge of ~14.82% in the last three months and over the last six months, it has increased by ~16.15%. The stock’s  52-week low and 52-week high stands at GBX 1,172.90 & GBX 1,618.00, respectively. Currently, it is trading above the average of its 52-week high-low.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 21 May 2024. The reference data in this report has been partly sourced from EODHD/Others.