| Mondi PLC (GB00BMWC6P49) | |||
12,28 GBXStand (close): 03.07.25 |
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| 27.06.25 13:54:00 | Paper Bags Market Insights and Forecast 2021-2025 & 2026-2031 | Customization and Branding Opportunities & Expansion in Emerging Markets |  |
| Company Logo The Global Paper Bags Market is projected to grow from USD 6.22 billion in 2024 to USD 8.88 billion by 2031, driven by eco-friendly packaging demand and plastic bans. Key players like International Paper and Mondi foster innovation in materials, catering to retail, food, and e-commerce sectors. Dublin, June 27, 2025 (GLOBE NEWSWIRE) -- The "Paper Bags Market (2025 Edition): Analysis By Material Type (Brown Kraft Paper, White Kraft Paper, and Recycled Paper), By Application, By Region, By Country: Market Insights and Forecast (2021-2031)" report has been added to ResearchAndMarkets.com's offering. The Global Paper Bags market showcased growth at a CAGR of 4.21% during 2021-2024. The market was valued at USD 6.22 billion in 2024 which is expected to reach USD 8.88 billion in 2031. This report provides a complete analysis for the historical period of 2021-2024, the estimates of 2024 and the forecast period of 2026-2031. The global paper bags market has experienced substantial growth in recent years and continues to expand rapidly, driven by increasing environmental awareness, stringent regulations against single-use plastics, and changing consumer preferences toward sustainable packaging. As governments worldwide implement stricter policies to combat plastic pollution, industries are being compelled to transition to biodegradable and recyclable alternatives. Consumers, in turn, are showing growing concern about environmental degradation, influencing purchasing decisions and prompting retailers, food chains, and manufacturers to adopt eco-friendly packaging solutions such as paper bags. Moreover, the rise of conscious consumerism, especially among millennials and Gen Z, has made sustainability a core element of brand identity for many businesses, encouraging investment in innovative paper-based packaging. A major catalyst for the global growth of the paper bags market is the widespread implementation of plastic bag bans and environmental regulations. Countries such as Kenya, Rwanda, India, France, and the United Kingdom have introduced strict measures to reduce or entirely eliminate the use of plastic carry bags, leading to a significant shift toward paper-based alternatives. These legislative moves have created a favorable policy environment that not only supports the production and use of paper bags but also encourages innovation and investment in biodegradable materials. Additionally, many corporations have voluntarily pledged to reduce their environmental footprints by incorporating paper-based packaging into their supply chains. This trend is particularly evident in large retail and e-commerce companies, which are replacing plastic mailers and shopping bags with more sustainable, recyclable paper bags. Economic development and industrial expansion across emerging economies have also contributed significantly to market growth. As retail infrastructure expands and e-commerce penetration deepens, especially in countries with growing middle-class populations, the demand for cost-effective, durable, and eco-conscious packaging solutions like paper bags is surging. Story Continues Furthermore, the hospitality and tourism sectors in regions like Southeast Asia, the Middle East, and Africa are promoting the use of paper bags as part of their green initiatives, enhancing brand reputation and aligning with global sustainability goals. Rising urbanization and increasing disposable incomes further fuel this trend by encouraging premium shopping experiences and high-quality packaging. Asia Pacific dominates the global paper bags market, both in terms of production and consumption. This dominance can be attributed to the region's large and rapidly growing population, increasing environmental consciousness, and robust manufacturing capabilities. Countries such as China, India, Japan, and South Korea have not only enacted regulations to reduce plastic usage but also invested heavily in the paper industry, boosting local production capacities. India, for instance, has implemented strict bans on single-use plastics in several states, thereby fostering demand for alternative packaging options across its diverse retail and foodservice sectors. Similarly, China's "Green Packaging" initiative supports eco-friendly production and packaging, fueling demand for paper bags in e-commerce and logistics. Japan's cultural affinity toward minimalism and high-quality craftsmanship further supports the growth of aesthetically designed and sustainable paper bags. The cost-effective labor and material availability in Asia Pacific also make it a global manufacturing hub, allowing it to cater to both domestic and export markets effectively. In addition to Asia Pacific, North America and Europe represent significant markets for paper bags, driven by strong environmental regulations and a well-established consumer culture around sustainability. The United States and Canada have seen increasing efforts at state and municipal levels to reduce plastic waste, and large retailers like Walmart and Whole Foods have committed to more sustainable practices. Europe, known for its progressive environmental policies, has a mature market with high demand for recyclable and biodegradable packaging. Countries such as Germany, the UK, and France continue to lead the way in eco-innovation and have fully integrated paper bags into daily commercial and consumer use. Meanwhile, the Middle East and Africa are emerging as high-potential markets, particularly as retail and tourism expand and governments begin to prioritize environmental reforms. Countries like the UAE and South Africa are showing promising growth through initiatives that promote green packaging in retail and hospitality sectors. The market is segmented by material type into brown kraft paper, white kraft paper, and recycled paper. Each material segment caters to specific industry needs and consumer preferences. Brown kraft paper, known for its durability and cost-effectiveness, is commonly used in grocery, industrial, and wholesale packaging. Its natural, rustic appearance also appeals to eco-conscious consumers and businesses looking for a minimalistic design. White kraft paper is often chosen for premium retail and luxury packaging due to its clean and refined appearance, which allows for high-quality printing and branding. It is widely used in boutiques, cosmetics, and specialty stores that want to reflect a polished image. Recycled paper, on the other hand, is gaining ground as companies and governments push for circular economy models. It supports the growing demand for eco-friendly packaging by minimizing the use of virgin materials and reducing overall carbon footprints. By application, the paper bags market is divided into retail, food & beverage, e-commerce, and others. The retail sector is a primary driver of demand, as supermarkets, department stores, and fashion outlets increasingly adopt paper bags to replace plastic alternatives. This trend is supported by both government regulation and brand-driven sustainability goals. In the food & beverage segment, paper bags are widely used for takeout, deliveries, and packaging dry or fast food. The sector benefits from the growing demand for biodegradable packaging in quick-service restaurants and cafes. E-commerce is another rapidly growing application segment, where companies are shifting to paper-based mailers and delivery bags to align with environmental commitments and meet consumer expectations for sustainable shipping. The global paper bags market is highly competitive and fragmented, with the presence of both international giants and regional players. Key companies such as International Paper Company, Mondi Group, Smurfit WestRock, Stora Enso, Oji Holdings Corporation, Klabin, and Novolex dominate the market landscape. These companies invest heavily in research and development to innovate stronger, more attractive, and more environmentally friendly paper bag solutions. Many of them operate integrated manufacturing and recycling facilities, which allow them to offer customized solutions while maintaining control over quality and supply chains. Partnerships with retailers, food chains, and e-commerce platforms further enhance their reach and adaptability. In addition, many regional manufacturers are gaining traction by focusing on niche markets or offering competitively priced alternatives. The intense competition is fostering innovation in product design, print quality, and material science, making paper bags more functional, aesthetically appealing, and environmentally viable. Scope of the Report The report analyses the Paper Bags Market by Value (USD Million). The report analyses the Paper Bags Market by Region (Americas, Europe, Asia Pacific, Middle East & Africa) and 10 Countries (United States, Canada, Mexico, Germany, United Kingdom, France, Italy, China, Japan, and India). The report presents the analysis of Paper Bags Market for the historical period of 2021-2024, the estimated year 2025 and the forecast period of 2026-2031. The report analyses the Paper Bags Market By Material Type (Brown Kraft Paper, White Kraft Paper, and Recycled Paper). The report analyses the Paper Bags Market By Application (Retail, Food & Beverage, E-commerce, and Others). The key insights of the report have been presented through the frameworks of SWOT Analysis. Also, the attractiveness of the market has been presented by region, By Material Type, By Application. Also, the major opportunities, trends, drivers, and challenges of the industry has been analyzed in the report. The report tracks competitive developments, strategies, mergers and acquisitions and new product development. The companies analyzed in the report are International Paper Company, Mondi Group, Smurfit Westrock, Oji Holdings Corporation, Stora Enso, Klabin, and Novolex. Analyst Recommendations Customization and Branding Opportunities Expansion in Emerging Markets Competitive Positioning: Companies' Product Positioning, Market Share Analysis, Company Profiles International Paper Company Mondi Group Smurfit WestRock Oji Holdings Corporation Stora Enso Klabin Novolex For more information about this report visit https://www.researchandmarkets.com/r/1uqasb About ResearchAndMarkets.com ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. CONTACT: CONTACT: ResearchAndMarkets.com Laura Wood,Senior Press Manager press@researchandmarkets.com For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900 View Comments |
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| 10.04.25 06:37:59 | 3 UK Stocks Estimated To Trade At Discounts Of Up To 40.8% | |
| The United Kingdom's stock market has recently faced challenges, with the FTSE 100 index experiencing declines due to weak trade data from China and broader global economic concerns. In this environment, investors may seek opportunities in undervalued stocks that could potentially offer value despite current market pressures. Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom Name Current Price Fair Value (Est) Discount (Est) Gooch & Housego (AIM:GHH) £3.90 £7.28 46.4% Applied Nutrition (LSE:APN) £1.08 £2.00 45.9% Trainline (LSE:TRN) £2.644 £5.24 49.6% Franchise Brands (AIM:FRAN) £1.325 £2.47 46.4% Deliveroo (LSE:ROO) £1.202 £2.25 46.5% Vanquis Banking Group (LSE:VANQ) £0.551 £1.02 45.8% Kromek Group (AIM:KMK) £0.051 £0.10 49.6% CVS Group (AIM:CVSG) £9.36 £18.35 49% Fintel (AIM:FNTL) £2.17 £4.24 48.8% Optima Health (AIM:OPT) £1.66 £3.08 46% Click here to see the full list of 55 stocks from our Undervalued UK Stocks Based On Cash Flows screener. Let's uncover some gems from our specialized screener. Burford Capital Overview: Burford Capital Limited offers legal finance products and services globally, with a market cap of approximately £1.99 billion. Operations: Burford Capital's revenue segments include Principal Finance generating $24.58 million and Asset Management and Other Services contributing $47.68 million. Estimated Discount To Fair Value: 40.8% Burford Capital is trading at £9.08, significantly below its estimated fair value of £15.35, suggesting it may be undervalued based on cash flows. Despite a challenging year with revenue falling to $546.09 million and net income dropping to $146.48 million, earnings are forecasted to grow 32% annually, outpacing the UK market's growth rate of 14%. However, profit margins remain negative and return on equity is expected to be modest at 8.1%. According our earnings growth report, there's an indication that Burford Capital might be ready to expand. Dive into the specifics of Burford Capital here with our thorough financial health report.AIM:BUR Discounted Cash Flow as at Apr 2025 Entain Overview: Entain Plc operates as a sports-betting and gaming company with a market cap of £3.30 billion. Operations: The company's revenue is segmented into CEE (£488 million), UK&I (£2.05 billion), and International (£2.57 billion). Estimated Discount To Fair Value: 32.1% Entain is trading at £5.16, below its estimated fair value of £7.61, indicating potential undervaluation based on cash flows. Despite reporting a net loss of £452.7 million for 2024, the company's earnings are expected to grow significantly by 101.76% annually over the next three years, surpassing market averages and leading to profitability. However, recent leadership changes may introduce some uncertainty in strategic direction and governance stability moving forward. Story Continues Insights from our recent growth report point to a promising forecast for Entain's business outlook. Unlock comprehensive insights into our analysis of Entain stock in this financial health report.LSE:ENT Discounted Cash Flow as at Apr 2025 Mondi Overview: Mondi plc, with a market cap of £4.49 billion, operates globally in the manufacture and sale of packaging and paper solutions across Africa, Western Europe, Emerging Europe, Russia, North America, South America, Asia, and Australia. Operations: The company's revenue segments include Flexible Packaging (€3.96 billion), Uncoated Fine Paper (€1.32 billion), and Corrugated Packaging (€2.25 billion). Estimated Discount To Fair Value: 11.8% Mondi is trading at £10.19, slightly below its estimated fair value of £11.55, reflecting potential undervaluation based on cash flows. The company reported a net income of €218 million for 2024, recovering from a previous loss. Despite lower profit margins this year, earnings are forecast to grow significantly by 34.72% annually over the next three years, outpacing the UK market growth rate of 14%. However, its dividend sustainability remains questionable due to insufficient coverage by earnings or free cash flows. The growth report we've compiled suggests that Mondi's future prospects could be on the up. Take a closer look at Mondi's balance sheet health here in our report.LSE:MNDI Discounted Cash Flow as at Apr 2025 Make It Happen Click this link to deep-dive into the 55 companies within our Undervalued UK Stocks Based On Cash Flows screener. Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments. Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide. Looking For Alternative Opportunities? Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AIM:BUR LSE:ENT and LSE:MNDI. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com View Comments |
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| 25.03.25 12:11:18 | Mondi plc's (LON:MNDI) latest 4.2% decline adds to one-year losses, institutional investors may consider drastic measures | |
| Key Insights Given the large stake in the stock by institutions, Mondi's stock price might be vulnerable to their trading decisions 50% of the business is held by the top 11 shareholders Insiders have been selling lately Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. If you want to know who really controls Mondi plc (LON:MNDI), then you'll have to look at the makeup of its share registry. With 83% stake, institutions possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). And so it follows that institutional investors was the group most impacted after the company's market cap fell to UK£5.3b last week after a 4.2% drop in the share price. The recent loss, which adds to a one-year loss of 7.6% for stockholders, may not sit well with this group of investors. Often called “market movers", institutions wield significant power in influencing the price dynamics of any stock. As a result, if the decline continues, institutional investors may be pressured to sell Mondi which might hurt individual investors. Let's delve deeper into each type of owner of Mondi, beginning with the chart below. View our latest analysis for Mondi LSE:MNDI Ownership Breakdown March 25th 2025 What Does The Institutional Ownership Tell Us About Mondi? Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. Mondi already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Mondi's historic earnings and revenue below, but keep in mind there's always more to the story.LSE:MNDI Earnings and Revenue Growth March 25th 2025 Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in Mondi. The company's largest shareholder is Public Investment Corporation Limited, with ownership of 10.0%. In comparison, the second and third largest shareholders hold about 8.1% and 6.9% of the stock. Story Continues A closer look at our ownership figures suggests that the top 11 shareholders have a combined ownership of 50% implying that no single shareholder has a majority. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. Insider Ownership Of Mondi The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our information suggests that Mondi plc insiders own under 1% of the company. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around UK£5.3m worth of shares (at current prices). It is good to see board members owning shares, but it might be worth checking if those insiders have been buying. General Public Ownership The general public-- including retail investors -- own 15% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. Next Steps: While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 4 warning signs for Mondi (1 makes us a bit uncomfortable) that you should be aware of. Ultimately the future is most important. You can access this freereport on analyst forecasts for the company. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 05.03.25 05:25:43 | There May Be Reason For Hope In Mondi's (LON:MNDI) Disappointing Earnings | |
| Shareholders appeared unconcerned with Mondi plc's (LON:MNDI) lackluster earnings report last week. Our analysis suggests that while the profits are soft, the foundations of the business are strong. Check out our latest analysis for Mondi LSE:MNDI Earnings and Revenue History March 5th 2025 The Impact Of Unusual Items On Profit Importantly, our data indicates that Mondi's profit was reduced by €137m, due to unusual items, over the last year. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And, after all, that's exactly what the accounting terminology implies. Assuming those unusual expenses don't come up again, we'd therefore expect Mondi to produce a higher profit next year, all else being equal. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Our Take On Mondi's Profit Performance Because unusual items detracted from Mondi's earnings over the last year, you could argue that we can expect an improved result in the current quarter. Because of this, we think Mondi's earnings potential is at least as good as it seems, and maybe even better! On the other hand, its EPS actually shrunk in the last twelve months. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. If you want to do dive deeper into Mondi, you'd also look into what risks it is currently facing. For example, we've found that Mondi has 4 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis. Today we've zoomed in on a single data point to better understand the nature of Mondi's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 22.02.25 09:23:40 | Mondi's (LON:MNDI three-year decrease in earnings delivers investors with a 21% loss | |
| Many investors define successful investing as beating the market average over the long term. But its virtually certain that sometimes you will buy stocks that fall short of the market average returns. Unfortunately, that's been the case for longer term Mondi plc (LON:MNDI) shareholders, since the share price is down 37% in the last three years, falling well short of the market return of around 19%. And the share price decline continued over the last week, dropping some 6.6%. This could be related to the recent financial results - you can catch up on the most recent data by reading our company report. Since Mondi has shed UK£384m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics. Check out our latest analysis for Mondi In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). During the three years that the share price fell, Mondi's earnings per share (EPS) dropped by 26% each year. In comparison the 14% compound annual share price decline isn't as bad as the EPS drop-off. This suggests that the market retains some optimism around long term earnings stability, despite past EPS declines. You can see below how EPS has changed over time (discover the exact values by clicking on the image).LSE:MNDI Earnings Per Share Growth February 22nd 2025 We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. It might be well worthwhile taking a look at our freereport on Mondi's earnings, revenue and cash flow. What About Dividends? It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Mondi, it has a TSR of -21% for the last 3 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return. A Different Perspective While the broader market gained around 14% in the last year, Mondi shareholders lost 9.2% (even including dividends). Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 0.8% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Mondi (of which 1 shouldn't be ignored!) you should know about. Story Continues Mondi is not the only stock insiders are buying. So take a peek at this freelist of small cap companies at attractive valuations which insiders have been buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 22.02.25 08:23:10 | Mondi Full Year 2024 Earnings: EPS Misses Expectations | |
| Mondi (LON:MNDI) Full Year 2024 Results Key Financial Results Revenue: €7.42b (up 1.2% from FY 2023). Net income: €218.0m (down 57% from FY 2023). Profit margin: 2.9% (down from 6.8% in FY 2023). EPS: €0.49 (down from €1.14 in FY 2023).LSE:MNDI Revenue and Expenses Breakdown February 22nd 2025 All figures shown in the chart above are for the trailing 12 month (TTM) period Mondi EPS Misses Expectations Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 43%. The primary driver behind last 12 months revenue was the Flexible Packaging segment contributing a total revenue of €3.96b (53% of total revenue). Notably, cost of sales worth €4.34b amounted to 59% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to €1.65b (58% of total expenses). Explore how MNDI's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to grow 5.8% p.a. on average during the next 3 years, compared to a 3.8% growth forecast for the Forestry industry in Europe. Performance of the market in the United Kingdom. The company's shares are down 6.6% from a week ago. Risk Analysis What about risks? Every company has them, and we've spotted 3 warning signs for Mondi (of which 1 is significant!) you should know about. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 21.02.25 15:00:41 | Mondi PLC (MNODF) (Q4 2024) Earnings Call Highlights: Resilient Performance Amid Challenging ... |  |
| EBITDA: 1,049 million for 2024, impacted by a reduction in forestry fair value gain and a one-off currency loss. Net Debt: 1.7 billion at the end of 2024, with a leverage of 1.7 times. Dividend: Full year dividend held at 70 cents per share. Sales Volumes: Increased compared to the prior year, particularly in flexible packaging. Sales Prices: Lower on average in 2024 compared to 2023. Cost Reduction: Overall costs were 254 million lower in 2024 than in 2023. Capital Expenditure: Over 900 million invested in 2024. Return on Capital: Affected by significant reduction in forestry fair value gain. Forestry Fair Value Gain: 7 million in 2024, down from 128 million in 2023. Currency Loss: 32 million one-off loss from Egyptian pound devaluation. Corrugated Packaging: Year-on-year improvement in profitability with steady improvement in container board prices. Flexible Packaging: Good volume gains across all product categories, offset by lower selling prices. Uncoated Fine Paper: Improved performance excluding forestry fair value gains, with volume gains and cost control. Warning! GuruFocus has detected 5 Warning Signs with MNODF. Release Date: February 20, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Mondi PLC (MNODF) has a strong market leadership position in flexible packaging, being the global number one in the craft paper and bags value chain. The company has completed significant strategic acquisitions, such as the Hinton pulp mill in Canada and Schumacher's packaging assets in Western Europe, enhancing its geographic and operational footprint. Mondi PLC (MNODF) has a well-invested and integrated asset base, consistently investing through cycles to ensure assets are appropriately positioned for market demands. The company has a strong track record of delivering complex capital expenditure projects on time and within budget, which supports its growth strategy. Despite difficult trading conditions, Mondi PLC (MNODF) delivered a resilient performance in 2024 with stable profitability, excluding one-off effects. Negative Points Mondi PLC (MNODF) faced weak demand and a generally weak pricing environment throughout 2024, impacting overall performance. The company experienced a significant reduction in forestry fair value gain and a one-off loss due to the Egyptian currency devaluation, affecting EBITDA and earnings per share. Sales prices in 2024 were on average lower than in 2023, particularly impacting the flexible packaging segment. The recycled container board market is expected to be in oversupply in the short term, posing challenges for price recovery and industry margins. Mondi PLC (MNODF) faces fixed cost increases, primarily due to the inclusion of Hinton's cost base and salary inflation, which could pressure profitability. Story Continues Q & A Highlights Q: How is Mondi positioned to leverage potential demand recovery in the construction market, especially if there is a Russia-Ukraine peace deal? Also, what are the priorities for capital expenditure moving forward? A: Andrew King, CEO, explained that Mondi is seeing a slow but steady recovery in demand for bags used in building materials and DIY markets. The company is also exploring new demand sources, such as e-commerce. Regarding capital expenditure, Mondi is cautious about expanding capacity in the oversupplied recycled container board market and is focusing on optimizing existing assets and cost-driven projects like the biomass boiler in Richards Bay. Q: Can you provide guidance on the contributions from major projects for 2025? A: Mike Powell, CFO, stated that while Mondi remains confident in achieving mid-cycle returns from growth projects, current market conditions are not at mid-cycle. For 2025, contributions from major projects are expected to be between 50 million and 100 million, depending on market pricing. Q: Could you elaborate on the EBITDA bridge from 2024 to 2025, considering factors like costs and pricing? A: Mike Powell noted that input costs are expected to remain stable, with some salary inflation. The fair value gain from forestry is projected to be around 60 million, and the Egyptian currency devaluation impact will not recur. Andrew King added that while there is some price recovery, it mainly restores previous price erosion, particularly in recycled grades. Q: What is the strategy for the Duino paper mill, and how will trade barriers in Turkey affect it? A: Andrew King mentioned that the acquisition of Schumacher changes Mondi's integration strategy, allowing more leverage in European markets. While trade tariffs in Turkey make it less attractive to send paper there, the acquisition strengthens Mondi's position in traditional European markets, ensuring a strong commercial ramp-up for Duino. Q: How is Mondi managing the Hinton pulp mill, and what are the future plans? A: Andrew King stated that Mondi is making operational improvements at Hinton, focusing on process enhancements and minor CapEx investments. The company is also conducting a feasibility study for a paper machine, which could further improve the mill's cost and output efficiency. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. View Comments |
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| 26.01.25 07:41:04 | Mondi plc's (LON:MNDI) Stock Is Rallying But Financials Look Ambiguous: Will The Momentum Continue? | |
| Mondi's (LON:MNDI) stock is up by a considerable 6.5% over the past month. But the company's key financial indicators appear to be differing across the board and that makes us question whether or not the company's current share price momentum can be maintained. In this article, we decided to focus on Mondi's ROE. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. Check out our latest analysis for Mondi How Do You Calculate Return On Equity? The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Mondi is: 7.9% = €425m ÷ €5.4b (Based on the trailing twelve months to June 2024). The 'return' refers to a company's earnings over the last year. That means that for every £1 worth of shareholders' equity, the company generated £0.08 in profit. What Is The Relationship Between ROE And Earnings Growth? So far, we've learned that ROE is a measure of a company's profitability. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. Mondi's Earnings Growth And 7.9% ROE On the face of it, Mondi's ROE is not much to talk about. Although a closer study shows that the company's ROE is higher than the industry average of 6.3% which we definitely can't overlook. However, Mondi's five year net income decline rate was 3.7%. Bear in mind, the company does have a slightly low ROE. It is just that the industry ROE is lower. So that could be one of the factors that are causing earnings growth to shrink. However, when we compared Mondi's growth with the industry we found that while the company's earnings have been shrinking, the industry has seen an earnings growth of 8.2% in the same period. This is quite worrisome.LSE:MNDI Past Earnings Growth January 26th 2025 Earnings growth is an important metric to consider when valuing a stock. It’s important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). This then helps them determine if the stock is placed for a bright or bleak future. Has the market priced in the future outlook for MNDI? You can find out in our latest intrinsic value infographic research report. Story Continues Is Mondi Efficiently Re-investing Its Profits? Mondi has a high three-year median payout ratio of 54% (that is, it is retaining 46% of its profits). This suggests that the company is paying most of its profits as dividends to its shareholders. This goes some way in explaining why its earnings have been shrinking. The business is only left with a small pool of capital to reinvest - A vicious cycle that doesn't benefit the company in the long-run. You can see the 3 risks we have identified for Mondi by visiting our risks dashboard for free on our platform here. Moreover, Mondi has been paying dividends for at least ten years or more suggesting that management must have perceived that the shareholders prefer dividends over earnings growth. Our latest analyst data shows that the future payout ratio of the company is expected to rise to 65% over the next three years. However, Mondi's future ROE is expected to rise to 11% despite the expected increase in the company's payout ratio. We infer that there could be other factors that could be driving the anticipated growth in the company's ROE. Summary Overall, we have mixed feelings about Mondi. On the one hand, the company does have a decent rate of return, however, its earnings growth number is quite disappointing and as discussed earlier, the low retained earnings is hampering the growth. Having said that, looking at current analyst estimates, we found that the company's earnings growth rate is expected to see a huge improvement. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 17.10.24 09:48:33 | Mondi shares down as weak Q3 results and soft demand weigh on outlook | |
| Investing.com -- Mondi Plc's (LON:MNDI) shares dropped following weaker-than-expected third-quarter results and cautious forward guidance. At 5:38 am (0938 GMT), Mondi was trading 7.2% lower at £1,289.89. The packaging giant, facing softer demand and rising costs, reported EBITDA of €223 million for the third quarter of 2024, a sharp fall from €351 million in the previous quarter. The drop was primarily due to higher maintenance expenses and a negative revaluation of forest assets. Maintenance costs surged by €40 million quarter-over-quarter, hitting €60 million, while the revaluation of Mondi's forestry holdings resulted in a €49 million hit to the bottom line. Jefferies had anticipated just a €15 million impact from forest value adjustments, further emphasizing the scope of the miss. Mondi’s results was also hampered by weaker seasonal demand and a broader decline in market conditions. “While we are seeing the benefits from the increase in prices earlier this year across our key paper grades, trading conditions remain muted against the backdrop of an uncertain macroeconomic environment,” said Mondi’s chief executive, Andrew King. The company’s guidance points to a step-up in EBITDA for the fourth quarter, with consensus estimates predicting around €362 million. However, Jefferies cautions that this may be overly optimistic, given the ongoing demand challenges. The analysts suggest consensus EBITDA for 2024 could face cuts of 3-6%, as market conditions remain softer than expected. “We expect a significant EBITDA contribution from organic capex of €1.2bn to follow through in FY25/26E as projects are ramped up, and continuing price growth to lead to mid-teens EBITDA growth in FY25E, but lower than c23% growth in consensus estimates,” said analysts at Barclays in a note. Mondi's focus on organic investments and capacity expansions is expected to contribute positively in 2025. Jefferies forecasts around €1.4 billion in EBITDA next year, boosted by an additional €100 million in contributions from new growth projects. However, reaching those targets will likely require an improvement in market demand, which remains elusive for now. Despite these challenges, Jefferies maintains that Mondi is well-positioned in its niche packaging markets, particularly in flexible packaging, where it holds a leading position. “In the fourth quarter there will be fewer planned maintenance shuts, and we expect the normal seasonal pick-up in demand,” King said. Related Articles Mondi shares down as weak Q3 results and soft demand weigh on outlook Story continues China woes drag down Pernod Ricard first quarter sales Nestle cuts outlook after Q3 miss, raising concerns over growth and profit margins View comments |
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| 24.09.24 10:47:29 | With 70% ownership, Mondi plc (LON:MNDI) boasts of strong institutional backing | |
| Key Insights Significantly high institutional ownership implies Mondi's stock price is sensitive to their trading actions 51% of the business is held by the top 13 shareholders Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock To get a sense of who is truly in control of Mondi plc (LON:MNDI), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are institutions with 70% ownership. Put another way, the group faces the maximum upside potential (or downside risk). Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait. In the chart below, we zoom in on the different ownership groups of Mondi. Check out our latest analysis for Mondi ownership-breakdown What Does The Institutional Ownership Tell Us About Mondi? Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. We can see that Mondi does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Mondi, (below). Of course, keep in mind that there are other factors to consider, too. earnings-and-revenue-growth Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Mondi is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Public Investment Corporation Limited with 10.0% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 9.4% and 6.0%, of the shares outstanding, respectively. After doing some more digging, we found that the top 13 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. Story continues Insider Ownership Of Mondi The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our data suggests that insiders own under 1% of Mondi plc in their own names. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own UK£4.0m of stock. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling. General Public Ownership With a 19% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Mondi. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. Next Steps: While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 3 warning signs for Mondi that you should be aware of before investing here. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View comments |
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