Mondi Plc - Half-year Financial Report
(Incorporated in
(Registered number: 6209386) LSE share code: MNDI
LEI: 213800LOZA69QFDC9N34 JSE share code: MNP
Strengthening our competitive advantage through disciplined execution
Key points
• H1 2026 underlying EBITDA of €379 million, including a forestry fair value loss of €35 million (H1 2025: €564 million including a fair value gain of €18 million)
– Margin pressure from higher input costs and lower average selling prices partially offset by higher sales volumes and pricing actions
•
Basic underlying earnings of
• Cash generated from operations of €347 million supported by a strong focus on working capital management (H1 2025: €416 million)
• Disciplined capital allocation reduces expected full year 2026 capital expenditure to around €500 million (previously €550 million)
• Good progress on converting plant network optimisation, with six plants closed or in process of closure
• Special items pre-tax charge of €320 million for impairments and restructuring, of which the expected cash effect is €24 million
•
An interim ordinary dividend of
“During the first half of 2026, we made good progress in delivering actions to strengthen Mondi’s performance, cash generation and competitiveness, supported by the strength of our quality product offering, high service levels and the agility and commitment of our people. We took strong pricing actions, maintained cost discipline, progressed our plant network optimisation programme and continued to drive operational excellence across the business.
“Heightened geopolitical tensions in the
“Trading momentum improved through the first half and we enter the second half with higher packaging paper prices, supported by good order books. We expect higher wood costs across Central and
“As major expansionary investments are now largely complete, our focus is on disciplined commercial execution to deliver growth, while relentlessly identifying and executing further opportunities to strengthen
Financial Summary
€ million, Six months ended Six months ended 30 Six months ended 31
except where noted 30 June June 2025 December 2025
2026
Group revenue 3,975 3,909 3,754
Underlying EBITDA 1 379 564 437
Forestry fair value (35) 18 21
(loss)/gain
Underlying EBITDA
excluding forestry 414 546 416
fair value
(loss)/gain
Underlying EBITDA 9.5% 14.4% 11.6%
margin 1
Underlying profit 80 272 103
before tax 1
(Loss)/Profit (240) 247 22
before tax
Basic underlying
earnings per share 11.6 42.7 13.8
(euro cents) 1
Basic earnings per (57.8) 38.6 (1.2)
share (euro cents)
Interim dividend
per share (euro 9.42 23.33
cents )
Cash generated from 347 416 656
operations
Net debt to
underlying EBITDA 3.2 2.5 2.6
(times) 1
Return on capital 4.0% 8.4% 6.7%
employed (ROCE) 1
1 The Group presents certain measures that are not defined or specified according to International Financial Reporting Standards. Refer to the Alternative Performance Measures section at the end of this document for further detail.
Enquiries
Investors/analysts:
Media:
Results presentation details
A webinar will be held today at 08:30 (BST), 09:30 (CET/SAST).
Event registration link: https://storm-virtual-uk.zoom.us/webinar/register/WN_FqPuJFuPQK2QFrhu4IwIuA
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 of hours after the end of the live results presentation at: https://www.mondigroup.com/investors/results-reports-and-presentations/
For any queries, please e-mail ir@mondigroup.com .
Strengthening performance, cash generation and competitiveness
We have made good progress on our broad programme of operational and financial actions to strengthen performance, cash generation and competitiveness. These included plant network optimisation, workforce reductions, productivity improvements, working capital management, extended debt maturities and disciplined capital allocation. Together, these measures will support long-term value creation.
1. Optimising our converting plant network to deliver efficiency gains
We continue to optimise our converting plant network to strengthen productivity, improve returns and create a more scalable platform for future growth. Following the three converting plant closures announced with the 2025 results, we announced a further three closures in April, bringing the total number of recently announced closures to six across corrugated and flexible packaging. While these were profitable, alternative plants within our network offer greater scale, stronger growth opportunities and the ability to serve customers more effectively. By concentrating volumes in these locations, we can improve asset utilisation, reduce complexity and further strengthen our competitive position.
Two of these converting plants have now closed, with customer volumes from our paper bag plants in
1. Controlling fixed costs and simplifying the organisation
Cost discipline remains a key priority as we mitigate inflationary pressures, support growth in core revenue-generating areas such as eCommerce, and maintain tight control of our fixed cost base. We have progressed targeted cost-out initiatives maintaining tight control of maintenance and overheads. We have streamlined organisational structures through the combination of
The Schumacher assets have been integrated into our Corrugated Solutions network, and we remain on track to deliver €32 million of cost synergies over the three years from completion.
1. Driving operational excellence to improve productivity
With some of the most productive and lowest-cost pulp and paper mills in
During the first half of 2026, we rolled out our new operational excellence programme, Mondi Management Systems (MMS) across the mill network and began extending it into our converting operations, driving a zero-loss productivity mindset and a disciplined, systematic way of operating. These programmes focus on eliminating losses, improving asset reliability, increasing productivity, enhancing energy efficiency and strengthening right-first-time performance.
Building on the successful pilots launched last year, we are already seeing encouraging results. Early adopter sites have reduced unplanned downtime and improved operating efficiency, demonstrating the potential to drive further productivity and performance from our existing asset base. As the programme is expanded across the business, we expect to realise further gains in productivity and cost competitiveness, supporting long-term value creation.
1. Enhancing cash generation and capital discipline
With major capacity expansion projects now largely complete and the asset base well invested, we continue to apply rigorous discipline to new approvals. We now expect capital expenditure for 2026 to be around €500 million, reduced from previous guidance of €550 million, while continuing to prioritise safety and asset integrity.
We maintain a strong liquidity position, supported by the successful refinancing in
Delivering for our customers with innovative, sustainable solutions, service and scale
We continued to strengthen customer relationships and win new business by helping customers transition to innovative paper-based packaging solutions that combine sustainability, performance and operational efficiency. Our differentiated offering spans a broad range of recyclable packaging solutions including paper-based and high-performance applications, supported by deep technical expertise, integrated production capabilities and a cost-advantaged manufacturing network. Together, these capabilities are supporting market share gains and creating new opportunities across attractive growth segments.
We are also benefiting from our recent investment in new capacity, where we have added approximately 300,000 tonnes of production this year. The new sack kraft paper machine at Steti continues to increase production supporting growth in industrial bags, eCommerce packaging and new consumer applications. The debottlenecking projects at Swiecie and Kuopio have improved productivity and efficiency and provide greater flexibility to meet evolving packaging requirements across our customer base.
Demand for paper-based eCommerce solutions remains strong in both
A well-invested platform for future growth
Our leading positions in sustainable packaging and paper, integrated and cost-advantaged production platform, and exposure to structurally growing packaging markets provide a strong foundation for future growth. The actions taken across the business are enhancing our customer offering, improving cost competitiveness and strengthening operational performance. With major expansionary investments complete and additional capacity now operational, we are focused on delivering growth, improving returns and creating long-term value from our existing asset base.
Group performance
Group revenue of €3,975 million was up on prior year (H1 2025: €3,909 million) driven mainly by the revenue contribution from the acquired Schumacher plants. The benefit from higher organic sales volumes was offset by lower average selling prices.
Sales prices across our paper grades declined in the second half of 2025 and into early 2026. This resulted in the Group entering 2026 with selling prices below average H1 2025 levels. Although price increases were implemented during the first half of 2026, with some initial benefits realised in the period, average H1 2026 prices remained below the comparative prior year. The full benefit of these price increases is expected to be achieved in the third quarter of 2026.
Input costs were higher year on year with wood cost increases in Central and
Fixed costs were broadly flat year-on-year on a like-for-like basis (when excluding the impact of the forestry fair value and acquired Schumacher cost base) reflecting our continued focus on cost control and driving efficiency improvements to offset inflationary cost pressures.
Currency movements had a net negative impact on underlying EBITDA compared to the prior year predominately due to a weaker US dollar.
Underlying EBITDA was lower at €379
million for the half year (H1 2025: €564
million) due to margin pressure and a €35 million forestry fair value loss recognised in the current period primarily due to a reduction in wood prices in
The underlying EBITDA impact of planned maintenance shuts was in line with the comparable prior year period, totalling around €20 million, all incurred in the second quarter. We expect a second half impact of around €60 million, split relatively evenly between the third and fourth quarters of the year. As a result, the full year impact is now expected to be around €80 million (previous guidance of around €100 million).
Depreciation and amortisation charges were €237 million (H1 2025: €236 million). The Group now expects full year depreciation and amortisation charges of approximately €475 million (previous guidance of €515-525 million). This was mainly as a result of revising the estimated useful lives of certain items of property, plant and equipment following a reassessment in the period of their expected economic benefits and operational performance, reflecting our well-invested and maintained asset base.
Net finance costs were €58 million in the period (H1 2025: €53 million). We continue to expect net finance costs for the full year of around €125 million.
The underlying tax charge for the half year was €17 million giving an effective tax rate of 21% (H1 2025: €61 million, 22%). The half year effective tax rate is lower than the expected full year rate, which remains around 25%, due to a tax credit received in the first half following successful settlement of a legacy tax case.
Basic underlying earnings were
Special items
Special item pre-tax charges of €320 million were recognised in the period. This comprised non-cash impairment charges of €296 million and restructuring and closure costs of €24 million. Impairment charges comprised €206 million at the Duino recycled containerboard mill (
The lower margin environment has adversely impacted the performance outlook for our recycled containerboard mill at Duino (
We continue to respond proactively to changing market conditions, with a clear focus on improving competitiveness, strengthening cash generation and maximising returns from our asset base.
Dividend
An interim ordinary dividend of
Business unit review
We are the leading virgin containerboard producer in
As a leading corrugated solutions producer in central and emerging
In addition, we produce a wide range of printing papers at our mills in central
€ million, Six months ended Six months ended 30 Six months ended 31 except for 30 June June 2025 December 2025 percentages 2026 Segment revenue 1,977 1,893 1,882 Underlying EBITDA 148 284 174 Forestry fair value (35) 18 21 (loss)/gain Underlying EBITDA excluding forestry 183 266 153 fair value (loss)/gain Underlying EBITDA 7.5% 15.0% 9.2% margin (%) Capital employed 4,032 4,396 4,265 ROCE 0.9% 6.6% 4.4%
Containerboard sales volumes were up 12% on the prior year driven predominantly by the ongoing production ramp up at Duino (
Corrugated Solutions achieved 2% box volume growth compared to H1 2025 on a like-for-like basis, driven by demand for our sustainable packaging solutions for eCommerce and consumer end-use applications. Overall, margins were lower than the comparative prior period due to the lag effect of passing on paper price increases and a weaker performance from the solidboard operations.
Uncoated Fine Paper increased market share with broadly stable sales volumes compared to the prior year supported by its strong customer offering against a backdrop of weaker market demand. Despite strong cost control, margins declined as selling prices were on average lower than the comparative prior year period.
The 12-month trailing return on capital employed (ROCE) was lower at 0.9% 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.
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, Six months ended 30 Six months ended 30 Six months ended 31 except for June 2026 June 2025 December 2025 percentages Segment revenue 2,022 2,044 1,897 Underlying EBITDA 251 302 281 Underlying EBITDA 12.4% 14.8% 14.8% margin (%) Capital employed 3,634 3,531 3,622 ROCE 8.7% 11.5% 10.4%
Kraft Paper sales volumes increased 8% compared to the prior year supported by recent investments and an improvement in demand. Selling prices were on average lower than the comparative prior year period.
Paper Bags achieved 3% sales volume growth compared to H1 2025 supported by growth in eCommerce solutions in
Consumer Flexibles and Functional Paper and Films continued to focus on delivering innovative and high-margin packaging solutions to customers. The business responded quickly through pricing actions to recover the impact of sharply higher resin and other input costs as a result of the conflict in the
The 12-month trailing return on capital employed (ROCE) was 8.7%, lower than the previous trailing 12-month period due to an increase in capital employed following the start up of major capacity expansion projects and the impact of lower earnings.
Cash flow
Cash generated from operations of €347 million (H1 2025: €416 million) supported by a strong focus on working capital management which mitigated the effect of lower earnings. Total working capital reduced by €122 million (30 June 2026: €1,295 million, 30 June 2025: €1,417 million).
Investment in property, plant and equipment in the half year was €211 million (H1 2025: €349 million). Capital expenditure for the full year, which includes investment in property, plant and equipment and intangible assets, is now expected to be around €500 million, lower than the €550 million previously guided. In addition, we expect to receive cash subsidies of around €20 million this year in relation to our recently invested capital expenditure, with roughly half received in the first half of the year.
Tax paid was €28 million (H1 2025: €40 million) and interest paid was €86 million (H1 2025: €50 million).
The Group paid €24 million of dividends during the period comprising €22 million of ordinary dividends to shareholders in respect of the 2025 final ordinary dividend and €2 million to non-controlling interests (H1 2025: €233 million comprising €202 million in respect of the 2024 final ordinary dividend and €31 million to non-controlling interests).
Liquidity, treasury and borrowings
Net debt at 30
June
2026 of €2,632
million was broadly similar to 31
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. The Group has no financial covenants in any of its financing facilities.
During the period we refinanced the Group's €1 billion RCF with a new initial 5-year term to 2031, plus two 1 year extension options. The Group also repaid the remaining €279 million of the €600 million Eurobond that matured in
Principal risks and uncertainties
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, in early 2026, a robust assessment of the Group’s principal and emerging risks to which
There were no changes to the Group’s principal risks as set out on pages 54 to 63 of the Integrated report and financial statements 2025.
Our principal risks are the following:
Strategic risks:
• Industry productive capacity
• Product substitution
• Fluctuations and variability in selling prices or gross margins
• Country risk
• Climate change risks
Financial risks:
• Capital structure
• Currency risk
• Tax risk
Operational risks:
• 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:
• Reputational risk
Going concern
The directors have reviewed the Group’s current financial position and performance expectations for the period until
At 30
June
2026, the Group had available liquidity of €1,154
million, comprising the undrawn Syndicated Revolving Credit Facility (RCF) of €1,000
million and cash and cash equivalents of €154
million. The Group retains a strong debt maturity profile. The only significant debt maturity in the near term is the 2.375% €750 million Eurobond due to mature in
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. The Group has no financial covenants in any of its financing facilities.
The Group has prepared a base case forecast reflecting recent trading performance in the first half of the year and market development expectations for the period to
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. A decline exceeding 100% of the planned underlying EBITDA throughout the assessment period until
Following their 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 six months ended 30 June 2026.
Directors’ responsibility statement
The directors confirm that to the best of their knowledge:
•
the condensed consolidated financial statements of the Group have been prepared in accordance with
International Accounting Standard 34, ‘Interim Financial Reporting’, as adopted for use in the
• the half year results announcement includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:
• the half year results announcement includes a fair review of the significant events during the six months ended 30 June 2026 and their impact on the condensed consolidated financial statements and a description of the principal risks and uncertainties for the remaining six months of the year ending 31 December 2026;
• there have been no significant individual related party transactions during the first six months of the financial year; and
• there have been no significant changes in the Group’s related party relationships from those reported in the Integrated report and financial statements 2025.
The Group’s condensed consolidated financial statements, and related notes, were approved by the Board and authorised for issue on
Director Director
Independent review report to Mondi plc
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed
Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared, in all material respects, in accordance with
The interim financial statements comprise:
• the condensed consolidated statement of financial position as at 30 June 2026;
• the condensed consolidated income statement for the period then ended;
• the condensed consolidated statement of comprehensive income for the period then ended;
• the condensed consolidated statement of changes in equity for the period then ended;
• the condensed consolidated statement of cash flows for the period then ended; and
• the explanatory notes to the interim financial statements.
The interim financial statements included in the half year results announcement of Mondi plc have been prepared in accordance with
Basis for conclusion
We conducted our review in accordance with International Standard on Review Engagements (
A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (
We have read the other information contained in the half year results announcement and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for conclusion section of this report, nothing has come to our attention to suggest that the directors have inappropriately adopted the going concern basis of accounting or that the directors have identified material uncertainties relating to going concern that are not appropriately disclosed. This conclusion is based on the review procedures performed in accordance with ISRE (
Responsibilities for the interim financial statements and the review
Our responsibilities and those of the directors
The half year results announcement, including the interim financial statements, is the responsibility of, and has been approved by the directors. The directors are responsible for preparing the half year results announcement in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom’s
Our responsibility is to express a conclusion on the interim financial statements in the half year results announcement based on our review. Our conclusion, including our Conclusions relating to going concern, is based on procedures that are less extensive than audit procedures, as described in the Basis for conclusion paragraph of this report.
Use of this report
This report, including the conclusion, has been prepared for and only for the company for the purpose of complying with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom’s
Chartered Accountants
Condensed consolidated income statement
for the six months ended 30
June
2026
Six months ended 30 Six months ended 30
June 2026 June 2025
Special Special
€ million Notes Underlying items Total Underlying items Total
(Note 4) (Note 4)
Group revenue 3 3,975 — 3,975 3,909 — 3,909
Materials, energy
and consumables (2,070) — (2,070) (1,957) — (1,957)
used
Variable selling (388) — (388) (348) — (348)
expenses
Gross margin 1,517 — 1,517 1,604 — 1,604
Maintenance and
other indirect (184) — (184) (184) — (184)
expenses
Personnel costs (704) (18) (722) (673) (1) (674)
Other net
operating (250) (6) (256) (183) (24) (207)
expenses
EBITDA 3 379 (24) 355 564 (25) 539
Depreciation,
amortisation and (237) (296) (533) (236) — (236)
impairments
Operating 3 142 (320) (178) 328 (25) 303
profit/(loss)
Net loss from (1) — (1) — — —
joint ventures
Net finance costs (58) — (58) (53) — (53)
Investment income 9 — 9 6 — 6
Foreign currency 1 — 1 1 — 1
gains
Finance costs (68) — (68) (60) — (60)
Net monetary loss
arising from (3) — (3) (3) — (3)
hyperinflationary
economies
Profit/(loss) 80 (320) (240) 272 (25) 247
before tax
Tax (17) 14 (3) (61) 7 (54)
(charge)/credit
Profit/(loss) 63 (306) (243) 211 (18) 193
for the period
Attributable to:
Non-controlling 12 — 12 23 — 23
interests
Shareholders 51 (306) (255) 188 (18) 170
Earnings per
share (EPS)
attributable to
shareholders
euro cents
Basic EPS 6 (57.8) 38.6
Diluted EPS 6 (57.8) 38.6
Basic underlying 6 11.6 42.7
EPS
Diluted 6 11.6 42.7
underlying EPS
Condensed consolidated statement of comprehensive income
for the six months ended 30
June
2026
€ million Six months ended 30 Six months ended 30
June 2026 June 2025
(Loss)/profit for the period (243) 193
Items that may subsequently
be or have been reclassified
to the condensed consolidated
income statement
Fair value gains arising from — 2
cash flow hedges
Exchange differences on
translation of foreign 64 (81)
non-euro operations
Items that will not
subsequently be reclassified
to the condensed consolidated
income statement
Remeasurements of retirement (1) 4
benefits plans
Tax effect thereof — (1)
Other comprehensive income/ 63 (76)
(expense) for the period
Attributable to:
Non-controlling interests 5 (10)
Shareholders 58 (66)
Total comprehensive
(expense)/income for the (180) 117
period
Attributable to:
Non-controlling interests 17 13
Shareholders (197) 104
Condensed consolidated statement of financial position
as at 30
June
2026
€ million Notes As at 30 June As at 31
2026 December 2025
Property, plant and 5,460 5,751
equipment
Goodwill 898 893
Intangible assets 96 110
Forestry assets 8 478 511
Investments in joint 9 10
ventures
Financial instruments 25 25
Deferred tax assets 28 22
Other non-current assets 2 2
Total non-current assets 6,996 7,324
Inventories 1,258 1,213
Trade and other receivables 1,549 1,290
Current tax assets 19 21
Financial instruments 12 4
Cash and cash equivalents 10b 157 292
2,995 2,820
Assets held for sale 3 —
Total current assets 2,998 2,820
Total assets 9,994 10,144
Short-term borrowings 9 (264) (344)
Trade and other payables (1,512) (1,366)
Current tax liabilities (74) (60)
Provisions (55) (59)
Financial instruments (14) (14)
(1,919) (1,843)
Liabilities directly
associated with assets held (10) —
for sale
Total current liabilities (1,929) (1,843)
Medium and long-term 9 (2,529) (2,538)
borrowings
Net retirement benefits (151) (151)
liability
Deferred tax liabilities (322) (346)
Non-current tax liabilities — (4)
Provisions (37) (34)
Other non-current (37) (28)
liabilities
Total non-current (3,076) (3,101)
liabilities
Total liabilities (5,005) (4,944)
Net assets 4,989 5,200
Equity
Share capital 97 97
Own shares (12) (16)
Retained earnings 4,168 4,449
Other reserves 248 197
Total attributable to 4,501 4,727
shareholders
Non-controlling interests 488 473
in equity
Total equity 4,989 5,200
The Group’s condensed consolidated financial statements, including related notes 1 to 13, were approved by the Board and authorised for issue on
Director Director
Mondi plc company registered number: 6209386
Condensed consolidated statement of changes in equity
for the six months ended 30
June
2026
Equity Non-controlling
€ million attributable to interests Total equity
shareholders
At 1 January 2026 4,727 473 5,200
Total comprehensive
(expense)/income for the (197) 17 (180)
period
(Loss)/profit for the (255) 12 (243)
period
Other comprehensive 58 5 63
income
Hyperinflation monetary (8) (1) (9)
adjustment
Transactions with
shareholders in their
capacity as shareholders
Dividends (22) (2) (24)
Purchases of own shares (3) — (3)
Injection from
non-controlling — 1 1
interests
Other 4 — 4
At 30 June 4,501 488 4,989
2026
Equity Non-controlling
€ million attributable to interests Total equity
shareholders
At 1 January 2025 4,857 493 5,350
Total comprehensive 104 13 117
income for the period
Profit for the period 170 23 193
Other comprehensive (66) (10) (76)
expense
Hyperinflation monetary 1 — 1
adjustment
Transactions with
shareholders in their
capacity as shareholders
Dividends (202) (31) (233)
Purchases of own shares (8) — (8)
Other 7 — 7
At 30 June 4,759 475 5,234
2025
Equity attributable to shareholders
€ million As at 30 June As at 31 December
2026 2025
Share capital 97 97
Own shares (12) (16)
Retained earnings 4,168 4,449
Cumulative translation (396) (456)
adjustment reserve
Post-retirement benefits (60) (56)
reserve
Share-based payment reserve 10 15
Merger reserve 667 667
Other sundry reserves 27 27
Total 4,501 4,727
Condensed consolidated statement of cash flows
for the six months ended 30
June
2026
€ million Notes Six months ended 30 Six months ended 30
June 2026 June 2025
Cash flows from operating
activities
Cash generated from 10a 347 416
operations
Income tax paid (28) (40)
Net cash generated from 319 376
operating activities
Cash flows from investing
activities
Investment in property, plant 3 (211) (349)
and equipment
Investment in intangible (3) (6)
assets
Investment in forestry assets 8 (27) (24)
Proceeds from the disposal of 4 14
property, plant and equipment
Acquisition of businesses,
net of cash and cash 14 (497)
equivalents
Loans advanced to related and — (1)
external parties
Interest received 10 5
Other investing activities 15 7
Net cash used in investing (198) (851)
activities
Cash flows from financing
activities
Proceeds from issue of 10c — 592
Eurobond
Repayment of Eurobond 10c (279) —
Proceeds from medium and 10c — 177
long-term borrowings
Repayment of medium and 10c (3) (16)
long-term borrowings
Proceeds from short-term 10c 204 7
borrowings
Repayment of short-term 10c (9) (67)
borrowings
Repayment of lease 10c (22) (15)
liabilities
Interest paid 10c (86) (50)
Dividends paid to 7 (22) (202)
shareholders
Dividends paid to (2) (31)
non-controlling interests
Purchases of own shares (3) (8)
Injection from 1 —
non-controlling interests
Net cash outflow from
debt-related derivative 10c (35) (15)
financial instruments
Net cash (used in)/generated (256) 372
from financing activities
Net decrease in cash and (135) (103)
cash equivalents
Cash and cash equivalents at 291 269
beginning of period
Cash movement in the period 10c (135) (103)
Effects of changes in foreign 10c (2) (7)
exchange rates
Cash and cash equivalents at 10b 154 159
end of period
Notes to the condensed consolidated financial statements
for the six months ended 30
June
2026
1 Basis of preparation
These condensed consolidated financial statements as at and for the six months ended 30 June 2026 comprise Mondi plc and its subsidiaries (together 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 prepared in accordance with International Accounting Standard 34, ‘Interim Financial Reporting’, as adopted for use in the
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.
The financial information set out above does not constitute statutory accounts as defined by section 434 of the Companies Act 2006. A copy of the statutory accounts for the year ended 31 December 2025 has been delivered to the Registrar of Companies. 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. The financial information set out above has been reviewed, not audited.
The preparation of the condensed consolidated financial statements includes the use of estimates and assumptions. Although the estimates used are based on management's best information about current circumstances and future events and actions, actual results may differ from these estimates. In preparing these condensed consolidated financial statements, the significant accounting estimates were consistent with those identified in the Group’s Integrated report and financial statements 2025.
During the period, impairment indicators were identified for the
Recoverable amounts were determined using value-in-use calculations based on discounted cash flow projections derived from the latest management forecasts. The methodology and key assumptions applied were consistent with those used in the annual impairment assessment, updated to reflect current trading performance, revised forecast cash flows, and the applicable discount rates and carrying amounts at
During the period, the Group completed a review of the estimated useful lives of certain items of property, plant and equipment. The review was undertaken following a reassessment of their expected economic benefits and operational performance, reflecting the Group’s well-invested asset base and accumulated operational experience since the previous comprehensive review of useful lives. Based on this assessment, the estimated useful lives of certain assets were revised to better reflect the expected period over which future economic benefits are consumed. The change has been accounted for prospectively as a change in accounting estimate in accordance with IAS 8. As a result, depreciation expense for the six months ended 30 June 2026 decreased by €22 million.
2 Accounting policies
The accounting policies and Alternative Performance Measures (APMs), as defined at the end of this document, and the methods of computation and presentation applied in the preparation of the condensed consolidated financial statements for the six months ended 30 June 2026 are consistent with those applied in the preparation of the Group’s annual financial statements for the year ended 31 December 2025.
Income tax expense is recognised based on management’s estimate of the weighted average effective income tax rate before special items, an APM as defined at the end of this document, expected for the full financial year.
The following amendments became effective for the financial period beginning on
– Amendments to IFRS 9 and IFRS 7 'Financial Instruments and Financial Instruments: Disclosures – Classification and Measurement of Financial Instruments'
– Amendments to IFRS 9 and IFRS 7 'Financial Instruments and Financial Instruments: Disclosures – Contracts Referencing Nature-dependent Electricity'
– Annual Improvements to IFRS Accounting Standards – Volume 11
3 Operating 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. The operating segments are managed based on the nature of the underlying products produced by those businesses and comprise two distinct segments. The segment information also includes APMs as defined at the end of this document.
Comparative segment information for the six months ended 30
June
2025 has been restated to reflect the operating segment reorganisation effective
Six months ended 30 June 2026
€ million, Corrugated Flexible Intersegment unless otherwise Packaging Packaging Corporate elimination Group stated Segment revenue 1,977 2,022 — (24) 3,975 Internal revenue (16) (8) — 24 — External revenue 1,961 2,014 — — 3,975 Underlying EBITDA 148 251 (20) — 379 Depreciation, amortisation and (134) (103) — — (237) impairments Underlying operating profit/ 14 148 (20) — 142 (loss) Special items (286) (34) — — (320) before tax Capital employed 4,032 3,634 (45) — 7,621 Trailing 12-month average capital 4,186 3,582 (79) — 7,689 employed Additions to non-current 163 77 — — 240 non-financial assets Capital expenditure cash 120 91 — — 211 payments Underlying EBITDA 7.5 12.4 — — 9.5 margin (%) Return on capital 0.9 8.7 — — 4.0 employed (%) Average number of employees 10.4 11.7 0.1 — 22.2 (thousands) 1
1 Presented on a full time employee equivalent basis.
Six months ended 30 June 2025 (restated)
€ million, Corrugated Flexible Intersegment unless otherwise Packaging Packaging Corporate elimination Group stated Segment revenue 1,893 2,044 — (28) 3,909 Internal revenue (17) (11) — 28 — External revenue 1,876 2,033 — — 3,909 Underlying EBITDA 284 302 (22) — 564 Depreciation, amortisation and (129) (107) — — (236) impairments Underlying operating profit/ 155 195 (22) — 328 (loss) Special items (23) (2) — — (25) before tax Capital employed 4,396 3,531 (54) — 7,873 Trailing 12-month average capital 3,724 3,211 (70) — 6,865 employed Additions to non-current 706 179 — — 885 non-financial assets Capital expenditure cash 166 183 — — 349 payments Underlying EBITDA 15.0 14.8 — — 14.4 margin (%) Return on capital 6.6 11.5 — — 8.4 employed (%) Average number of employees 9.8 11.9 0.1 — 21.8 (thousands) 1
1 Presented on a full time employee equivalent basis.
Year ended 31
€ million, Corrugated Flexible Intersegment unless otherwise Packaging Packaging Corporate elimination Group stated 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 (280) (223) (1) — (504) impairments Underlying operating profit/ 178 360 (41) — 497 (loss) Special items (67) (39) — — (106) before tax Capital employed 4,265 3,622 (88) — 7,799 Trailing 12-month average capital 4,048 3,445 (76) — 7,417 employed Additions to non-current 961 381 — — 1,342 non-financial assets Capital expenditure cash 325 348 — — 673 payments Underlying EBITDA 12.1 14.8 — — 13.1 margin (%) Return on capital 4.4 10.4 — — 6.7 employed (%) Average number of employees 10.2 11.8 0.1 — 22.1 (thousands) 1
1 Presented on a full time employee equivalent basis.
External revenue by location of contribution and by location of customer
External revenue by location External revenue by location of
of contribution customer
Six months Six months Six months Six months ended
€ million ended 30 ended 30 ended 30 30 June
June 2026 June 2025 June 2026 2025
Western Europe
Austria 649 632 79 83
Germany 438 372 579 546
United Kingdom 15 7 126 111
Rest of western 444 381 943 932
Europe
Western Europe 1,546 1,392 1,727 1,672
total
Emerging Europe
Czech Republic 403 394 138 133
Poland 718 724 359 359
Turkiye 220 200 240 227
Rest of emerging 408 442 262 275
Europe
Emerging Europe 1,749 1,760 999 994
total
Africa
South Africa 279 302 194 204
Rest of Africa 27 41 190 171
Africa total 306 343 384 375
North America 323 360 461 456
South America 4 2 76 76
Asia and 47 52 328 336
Australia
Group revenue 3,975 3,909 3,975 3,909
4 Special 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 Six months ended 30 Six months ended 30 June
June 2026 2025
Operating special items
Impairment of assets (296) —
Restructuring and closure
costs:
Personnel costs (18) (1)
Other restructuring and (6) (1)
closure costs
Costs relating to the
acquisition of the Western — (23)
Europe Packaging Assets of
Schumacher Packaging
Total special items before (320) (25)
tax
Tax credit 14 7
Total special items (306) (18)
The cash outflow from operating special items for the six months ended 30 June 2026 was €16 million (six months ended 30 June 2025: €28 million), primarily relating to special item charges recognised in prior periods.
Details of the special items recognised in the year ended 31 December 2025 were disclosed in note 3 of the Group’s Integrated report and financial statements 2025. Special items during the period ended 30 June 2026 comprised the following:
Asset impairments (
Impairment charges of €279 million were recognised, primarily in relation to the Duino recycled containerboard mill (
Stambolijski mill closure and disposal (
In
Converting plant network optimisation and overhead streamlining actions (
In line with the Group’s ongoing commitment to strengthening performance, cash generation and competitiveness, the Group has taken action to optimise its converting plant network and streamline overhead costs. Actions include plant closures previously disclosed in the 2025 consolidated financial statements, as well as three additional plant closures announced in
For the six months ended 30
June
2026, the Group recognised restructuring and closure costs of €25 million. Of this amount, €7 million was attributable to
5 Asset impairments
During the six months ended
€ million Duino Neusiedler Schwarzenberg Other Total Property, plant and equipment 204 39 26 18 287 Intangible assets 2 — 5 2 9 Total impairment charge (see 206 39 31 20 296 note 4)
During the period, management identified indicators of impairment at the Duino, Neusiedler and Schwarzenberg mills, reflecting continued soft market conditions and updated profitability expectations. Accordingly, the recoverable amounts of the respective cash-generating units (CGUs) were reassessed in accordance with IAS 36.
The recoverable amounts of the Duino, Neusiedler and Schwarzenberg CGUs were assessed in accordance with IAS 36 as the higher of value in use and fair value less costs of disposal. The assessments incorporated, as applicable, discounted cash flow projections based on the latest management-approved forecasts and estimates of the value of the underlying assets. Value in use calculations were discounted using a pre-tax discount rate of 7.0%. The recoverable amounts determined for Neusiedler, Duino and Schwarzenberg were €40 million, €41 million and €3 million, respectively. Where recoverable amounts were determined using fair value less costs of disposal, the valuation was based on a market approach using estimates of the value of individual assets and the fair value measurements were categorised within Level 3 of the fair value hierarchy. The most significant inputs related to the estimated values of specialised production assets and land and buildings.
Impairment charges were recognised where the carrying amounts of the CGUs exceeded their recoverable amounts. The impairment charge was allocated to the individual assets within the CGUs in accordance with IAS 36. In allocating the impairment, no asset was written down below the highest of its fair value less costs of disposal, its value in use and zero. As a result, further adverse changes in the value-in-use assumptions would not necessarily result in an additional impairment charge.
Management considers the assumptions applied in the impairment assessments to represent its best estimate of future market conditions and operating performance at the reporting date.
6 Earnings per share (EPS)
EPS attributable to shareholders
euro cents Six months ended 30 Six months ended 30 June
June 2026 2025
Basic EPS (57.8) 38.6
Diluted EPS (57.8) 38.6
Basic underlying EPS 11.6 42.7
Diluted underlying EPS 11.6 42.7
Basic headline EPS 5.4 37.2
Diluted headline EPS 5.4 37.2
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 Six months ended 30 Six months ended 30
June 2026 June 2025
(Loss)/profit for the period (255) 170
attributable to shareholders
Special items (see note 4) 320 25
Related tax (see note 4) (14) (7)
Underlying earnings 51 188
Gain on disposal of property, (2) (3)
plant and equipment
Insurance reimbursements for (5) (4)
property damages
Restructuring and closure (24) (2)
costs (see note 4)
Costs relating to the
acquisition of the Western — (23)
Europe Packaging Assets of
Schumacher Packaging
Related tax 4 8
Headline earnings for the 24 164
period
Underlying earnings and headline earnings represent APMs which are defined at the end of this document.
Weighted average number of shares
million Six months ended 30 Six months ended 30 June
June 2026 2025
Basic number of ordinary 440.9 440.7
shares outstanding
Diluted number of ordinary 440.9 440.7
shares outstanding
7 Dividends
The interim dividend for the year ending 31
Six months ended 30 Year ended 31
June 2026 December 2025
euro cents euro cents
€ million € million
per share per share
Final dividend in 4.92 22 46.67 202
respect of prior year
Interim dividend in 9.42 42 23.33 103
respect of current year
The interim dividend declared for the year ended 31
Dividend timetable
The interim dividend for the year ending 31
Last date to trade shares cum-dividend JSE Limited Tuesday18 August 2026 London Stock Exchange Wednesday19 August 2026 Shares commence trading ex-dividend JSE Limited Wednesday19 August 2026 London Stock Exchange Thursday20 August 2026 Record date Friday21 August 2026 Last date for receipt of Dividend Reinvestment Plan (DRIP) elections byCentral Securities Depository Thursday27 August 2026 Participants Last date for DRIP elections toUK Registrar and South African Transfer SecretariesSouth African Register Friday28 August 2026 UK Register Monday7 September 2026 Payment Date Friday25 September 2026 DRIP purchase settlement date (subject to market conditions and the purchase of shares in the open market)UK Register Tuesday29 September 2026 South African Register Thursday1 October 2026 DRIP results announcement Friday9 October 2026 Currency conversion date ZAR/euro Thursday30 July 2026 Euro/sterling Wednesday9 September 2026
Share certificates on Mondi plc's South African register may not be dematerialised or rematerialised between Wednesday
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 30
8 Forestry assets
€ million As at 30 June As at 30 June As at 31
2026 2025 December 2025
At 1 January 511 503 503
Investment in forestry 27 24 50
assets
Fair value (loss)/gain (35) 18 39
Disposal of assets — (1) (1)
Felling costs (45) (44) (85)
Currency movements 20 (29) 5
At 30 June / 31 478 471 511
December
The fair value of forestry assets is determined using a market-based approach and is a level 3 measure in terms of the fair value measurement hierarchy (see note 11), consistent with prior year. The valuation process and key observable inputs, including the sensitivity analyses, were largely in line with those applied for the year ended 31 December 2025, as described in note 15 of the Group’s Integrated report and financial statements 2025.
9 Borrowings
Financing facilities
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 % As at 30 As at 31
June 2026 December 2025
Financing
facilities
Syndicated
Revolving Credit May 2031 EURIBOR + margin 1,000 1,000
Facility
€600 million April 2026 1.625% — 279
Eurobond
€750 million April 2028 2.375% 750 750
Eurobond
€550 million May 2031 3.375% 550 550
Eurobond
€500 million May 2032 3.750% 500 500
Eurobond
€600 million May 2033 3.750% 600 600
Eurobond
Long-Term December
Facility 2026-June 2031 Various 14 20
Agreements
Total committed 3,414 3,699
facilities
Drawn (2,414) (2,699)
Total committed
facilities 1,000 1,000
available
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.
In
Short-term liquidity needs are met by cash and the RCF. As at 30 June 2026, 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).
As at 30 June As at 31 December
2026 2025
€ million Current Non-current Total Current Non-current Total
Secured
Lease liabilities 38 138 176 39 145 184
Total secured 38 138 176 39 145 184
Unsecured
Bonds — 2,386 2,386 279 2,384 2,663
Bank loans and 226 5 231 26 9 35
overdrafts
Total unsecured 226 2,391 2,617 305 2,393 2,698
Total borrowings 264 2,529 2,793 344 2,538 2,882
As at 30
June
2026, the Group’s current bank loans and overdrafts borrowings included €220 million borrowed on uncommitted facilities (as at 31
10 Consolidated cash flow analysis
(a) Reconciliation of profit before tax to cash generated from operations
€ million Six months ended 30 Six months ended 30
June 2026 June 2025
(Loss)/profit before tax (240) 247
Depreciation and amortisation 237 236
Share-based payments 4 7
Net pre-tax cash flow effect
of current and prior period 304 (3)
special items
Net finance costs 58 53
Net monetary loss arising
from hyperinflationary 3 3
economies
Net loss from joint ventures 1 —
Decrease in provisions (2) (11)
Decrease in net retirement (5) (2)
benefits
Movement in working capital (94) (130)
Increase in inventories (24) (17)
Increase in operating (280) (220)
receivables
Increase in operating 210 107
payables
Fair value loss/(gain) on 35 (18)
forestry assets
Felling costs 45 44
Net gain on disposal of (2) (3)
property, plant and equipment
Insurance reimbursements for (5) (4)
property damages
Other adjustments 8 (3)
Cash generated from 347 416
operations
(b) Cash and cash equivalents
€ million As at 30 June As at 30 June As at 31
2026 2025 December 2025
Cash and cash equivalents 157 168 208
carried at amortised cost
Money market funds valued
at fair value through — — 84
profit and loss
Cash and cash
equivalents per condensed 157 168 292
consolidated statement of
financial position
Bank overdrafts included (3) (9) (1)
in short-term borrowings
Cash and cash
equivalents per condensed 154 159 291
consolidated statement of
cash flows
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:
Debt Debt-related
Cash Debt due due derivative Total
€ million and cash within one after financial net debt
equivalents year 1 one instruments
year
At 1 January 291 (343) (2,538) (9) (2,599)
2026
Cash flow (135) 106 3 35 9
Cash movement in (135) — — — (135)
the period
Repayment of — 279 — — 279
Eurobond
Proceeds from — (204) — — (204)
borrowings
Repayment of — 9 3 — 12
borrowings
Repayment of
lease — 22 — — 22
liabilities
Net cash outflow
from
debt-related — — — 35 35
derivative
financial
instruments
Additions to
lease — (5) (20) — (25)
liabilities
Disposal of
lease — 2 12 — 14
liabilities
Movement in
unamortised loan — (1) (2) — (3)
costs
Net movement in
fair value of
derivative — — — (22) (22)
financial
instruments
Reclassification — (18) 18 — —
Currency (2) (2) (2) — (6)
movements
At 30 June 154 (261) (2,529) 4 (2,632)
2026
1
Excludes bank overdrafts of €3 million (as at 31
The Group incurred interest expense of €70 million in relation to bank overdrafts, loans and lease liabilities (six months ended 30 June 2025: €64 million), before the capitalisation of interest. Included in this expense is €16 million (six months ended 30 June 2025: €20 million) relating to forward exchange rates on derivative contracts. Interest paid on borrowings was €86 million (six months ended 30 June 2025: €50 million).
11 Fair 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 8.
As at 30
June
2026, the fair value of level 2 derivative financial assets is €12 million (as at 31
Cash and cash equivalents include money market funds, which are carried at fair value through profit and loss and classified as level 1 within the fair value hierarchy, with the remaining balance carried at amortised cost, as set out in note 10b.
The Group did not measure any financial assets or financial liabilities at fair value on a non-recurring basis as at 30 June 2026. There have been no transfers of assets or liabilities between levels of the fair value hierarchy during the period.
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.
• 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 As at 30 As at 31 As at 30 June As at 31
June 2026 December 2025 2026 December 2025
Financial
liabilities
Borrowings 2,793 2,882 2,769 2,868
12 Other disclosures
The write-down of inventories to net realisable value for the six months ended 30 June 2026 was €49 million (six months ended 30 June 2025: €36 million) while the aggregate reversal of previous write-downs of inventories, relating to goods that had been written down to net realisable value and were subsequently sold above their carrying value, was €29 million for the six months ended 30 June 2026 (six months ended 30 June 2025: €33 million).
Capital commitments contracted for but not recognised as liabilities are €358 million as at 30
June
2026 (as at 31
There have been no significant changes to the nature of the contingent liabilities as disclosed in note 28 of the Group’s Integrated report and financial statements 2025.
There have been no significant changes to the level and nature of the Group’s related party transactions as disclosed in note 30 of the Group’s Integrated report and financial statements 2025.
13 Events occurring after 30 June 2026
Aside from the interim ordinary dividend declared for the current financial year (see note 7), there have been no material reportable events since 30 June 2026.
Alternative Performance Measures
The Group presents certain measures of financial performance, financial position and cash flows in the condensed consolidated financial statements that are not defined or specified in 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 directly comparable with similarly defined measures and disclosures applied by other companies. Such measures should not be viewed in isolation or as a substitute for 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. Three of the Group’s APMs, underlying EBITDA, basic underlying EPS 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, unless otherwise stated. The reporting segment equivalent APMs are measured in a consistent manner. Certain APMs use trailing 12-month amounts, which represent the sum or average (as applicable for trailing 12-month average capital employed and trailing 12-month average net debt) of the preceding 12 months.
APM description Financial statement Closest IFRS
and purpose reference equivalent measure
Special items
Special items are
generally
material,
non-recurring
items that exceed
€10 million. The
Audit Committee
regularly assesses
the €10 million
monetary threshold
on a net basis and
considers its
appropriateness 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
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 Note 4 None
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 in later
periods, continue
to be reported 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 within
underlying result
even if the
cumulative net
charge/credit over
time exceeds the
€10 million
quantitative
reporting
threshold.
Underlying EBITDA
Operating profit
before special
items,
depreciation,
amortisation and
impairments not
recorded as Condensed consolidated income statement Operating profit
special items
provides a measure
of the Group's
cash-generating
ability that is
comparable from
year to year.
Underlying EBITDA margin
Underlying EBITDA
expressed as a
percentage of
Group revenue
(segment revenue
for operating None
segments) provides
a measure of the
Group's
cash-generating
ability relative
to revenue.
APM calculation:
€ million, Six months ended 30 Six months ended
unless otherwise June 2026 30 June
stated 2025
Underlying EBITDA
(see condensed 379 564
consolidated
income statement)
Group revenue (see
condensed 3,975 3,909
consolidated
income statement)
Underlying EBITDA 9.5 14.4
margin (%)
Underlying operating profit
Operating profit
before special
items provides a
measure of the Condensed consolidated income statement Operating profit
Group's operating
performance that
is comparable from
year to year.
Underlying profit before tax
Profit before tax
and special items.
Underlying profit
before tax
provides a measure Condensed consolidated income statement Profit before tax
of the Group’s
profitability
before tax that is
comparable from
year to year.
Effective tax rate
Underlying tax
charge expressed
as a percentage of
underlying profit
before tax.
None
A measure of the
Group's tax charge
relative to its
profit before tax
expressed on an
underlying basis.
APM calculation:
€ million, Six months ended 30 Six months ended
unless otherwise June 2026 30 June
stated 2025
Tax charge before special items (see
condensed consolidated income 17 61
statement)
Underlying profit before tax (see
condensed consolidated income 80 272
statement)
Effective tax 21 22
rate (%)
Underlying earnings (and per share measure)
Net profit after
tax before special
items that is
attributable to
shareholders.
Underlying
earnings (and the Profit for the period
related per share Note 6 attributable to shareholders (and
measure based on per share measure)
the basic,
weighted average
number of ordinary
shares
outstanding)
provides a measure
of the Group's
earnings.
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 Profit for the period
Listings Note 6 attributable to shareholders (and
Requirements of per share measure)
the JSE Limited
and is calculated
in accordance with
Circular 1/2023,
‘Headline
Earnings’, as
issued by the
South African
Institute of
Chartered
Accountants.
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 Total equity
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.
APM calculation:
€ million Six months ended 30 Six months ended 30 Year ended 31
June 2026 June 2025 December 2025
Total equity (see
condensed
consolidated 4,989 5,234 5,200
statement of
financial
position)
Net debt (see note 2,632 2,639 2,599
10c)
Capital employed 7,621 7,873 7,799
Return on capital employed (ROCE)
Trailing 12-month
underlying
operating profit,
including share of
associates' and
joint ventures'
net profit/(loss),
divided by None
trailing 12-month
average capital
employed. ROCE
provides a measure
of the efficient
and effective use
of capital in the
business.
APM calculation:
€ million, Six months ended 30 Six months ended 30 Year ended 31
unless otherwise June 2026 June 2025 December 2025
stated
Trailing 12-month
underlying 311 579 497
operating profit
Trailing 12-month
underlying net (2) (1) (1)
loss from joint
ventures
Trailing 12-month
underlying profit 309 578 496
from operations
and joint ventures
Trailing 12-month
average capital 7,689 6,865 7,417
employed (see note
3)
ROCE (%) 4.0 8.4 6.7
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 Note 10c None
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.
Net debt to underlying EBITDA
Net debt divided
by trailing
12-month
underlying EBITDA.
A measure of the None
Group’s net
indebtedness
relative to its
cash-generating
ability.
APM calculation:
€ million, Six months ended 30 Six months ended 30 Year ended 31
unless otherwise June 2026 June 2025 December 2025
stated
Net debt (see note 2,632 2,639 2,599
10c)
Trailing 12-month 816 1,048 1,001
underlying EBITDA
Net debt to
underlying EBITDA 3.2 2.5 2.6
(times)
Production statistics
Six months ended 30 Six months ended 30
June 2026 June 2025
Containerboard 000 tonnes 1,430 1,302
Kraft paper 000 tonnes 652 629
Uncoated fine paper 000 tonnes 476 467
Pulp 000 tonnes 1,992 1,950
Internal consumption 000 tonnes 1,652 1,593
Market pulp 000 tonnes 340 357
Corrugated solutions million m² 1,277 1,118
Paper bags million units 3,008 2,961
Consumer flexibles million m² 891 939
Functional paper and million m² 1,576 1,609
films
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
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
Any reference to future financial performance included in this announcement has not been reviewed or reported on by the Group’s auditors.
Editors’ notes
In 2025,
Sponsor in
