Group revenue increased to EUR6.5 billion (EUR5.8 billion). Gross margin rose to EUR2.6 billion (EUR2.2 billion). Operating profit improved to EUR605 million (EUR547 million). Net attributable profit surged to EUR386 million (EUR242 million). Basic headline EPS grew to EUR91.3cps (EUR62.9cps).
Dividend
A final gross ordinary dividend of EUR26.45cps has been declared.
Outlook
The trading environment in the group's main markets remains mixed. The increase in the price of recycled containerboard in the second half of 2013 on solid demand growth is encouraging, and should lend support to the other key containerboard grades. However, price pressure in most virgin paper grades in the second half of 2013 means that the new year started with lower pricing than the average for 2013. The near-term outlook for pricing is largely dependent on the strength of the European macroeconomic recovery. In this regard it is encouraging to see a recent pick-up in orders in some of the group's main product segments and discussions are underway with customers on price increases in certain virgin packaging grades.
Recent exchange rate volatility in several of the emerging markets in which the group operates does create some challenges. However, the group's positioning as a net exporter from most of these markets typically allows it to benefit from the devaluation of these currencies relative to the euro.
The group is confident that its ongoing capital investment programme will contribute meaningfully to Mondi's performance going forward. Mondi's proven ability to generate strong cash flows through the cycle provides valuable optionality. As such, the group remains confident in its ability to continue delivering industry-leading performance.
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