Mondi's lifts as it books more cash and keeps its dividend steady

Mondi managed to generate more cash in 2023 even as the paper and packaging group's earnings came under serious pressure from softer demand for its products.

Cash generated from operations climbed 2% to about €1.3 billion (R27 billion) for the year to December, with Mondi saying on Thursday this will stand it good stead when it comes to its investment ambitions. The group had benefitted from improvements to its working capital as a result of lower inventory, and also got a boost from lower finance costs amid higher cash balances, as well as a favourable currency mix.

Nonetheless, the evidence of a difficult trading period was evidenced by the fact that underlying core profit fell about a third to €1.2 billion, though it maintained its dividend of 70 euro cents per share, having received proceeds of €806 million from the disposal of its Russian operations in the year.