Mondi PLC. JSE: MNP

Background of Mondi
Mondi is a global packaging and paper group with around 25 000 employees and over 100 operations located in South Africa, central Europe, North America and Russia, Asia and Latin America. The company has a dual-listed structure, with Mondi Limited shares for sale on the Johannesburg Stock Exchange and Mondi PLC shares listed on the London Stock Exchange.
Mondi’s history stems back to 1967, when former owners Anglo American built the Merebank mill in South Africa. The group quickly expanded to Europe and went on to buy many market-leading companies across the globe.
Today, the company controls over 2 million hectares of owned and leased forest, and operations span the entire value chain, from managing forests, to producing paper, pulp and compound plastics and developing industrial and consumer packaging solutions. Mondi creates over 100 packaging and paper products, customised into more than 100 000 different solutions.
Mondi recorded revenue of more than €6.8 billion in 2015 and has a JSE market cap of R148 billion. The live online stocks chart shows that Mondi share price has enjoyed explosive growth over the past five years.
Mondi Shares Growth Driver
Mondi aims to drive growth through four pillars, namely developing and maintaining leading market conditions, maintaining a high-quality, low-cost asset base, customer focused development and a continuous focus on efficient performance.
Mondi achieved excellent financial results in 2015, with Mondi share price realising strong gains over the past few years. All business units registered significant profit improvements, driven by higher selling prices, volume growth, effective cost control and major contributions from completed capital projects, which contributed around €50 million to underlying operating profit. Overall operating profit was up by 24% to €900 million, with shareholders enjoying record dividends of 52 Euro cents. One of the group’s key performance indicators – return on capital employed – stood at an impressive 20.5%.
Focus has been particularly placed on growing the packaging side of the business, whilst also seeking to invest appropriately in uncoated fine paper operations. Acquisition-led growth remains a key component of Mondi’s strategy, but the group has been partly deterred by inflated asset prices. The forecast is that further opportunities will arise as availability of financing reduces and asset prices become more attractive. In the meantime, the group is continuing to seek growth through capital investment in existing operations, with €595 million expended in 2015.
Mondi Group Investor Tip
Mondi shares have proved to be a highly profitable buy for investors, increasing from R60.60 in September 2011 to R301.56 in September 2016. After an explosive growth period, Mondi share price has been stable for the past year or so, in accordance with the more difficult economic environment. But the company continues to expand and enjoy increasingly impressive results. This is a reflection of sound cost management and a market-leading position which the company looks unlikely to relinquish. This bodes well for investors who plan to buy Mondi shares.
Mondi Major Shareholders
Public Investment Corporation, Coronation Asset Management, BlackRock, Investec Asset Management, AXA SA, Standard Life Investments, Norges Bank.
Sector
Materials
Industry
Containers & Packaging
Sub industry
Containers & Packaging
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Frequently Asked Questions
What is Mondi PLC?
A global packaging and paper group with operations in South Africa, North America, Latin America, Central Europe, Asia & Russia.
Can you buy Mondi PLC shares online?
The website of SA Shares makes it easy for you to buy JSE listed shares online.
Who are the major shareholders in Mondi PLC?
Public Investment Corporation, Coronation Asset Management, BlackRock, Investec Asset Management, AXA SA, Standard Life Investments, Norges Bank.
Is Mondi PLC a good share to buy?
Mondi PLC shares has proved to be stable in difficult economic times.
When did Mondi PLC list on the JSE?
Mondi is a FFTSE100 constituent. It has been included in the FTSE4Good Index series since 2008 as well as the FTSE/JSE responsible investment index series since 2007.