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Mondi Shares Surge as Volume Growth Defies Packaging Slump

Mondi shares climbed to the top of the FTSE 100 on Thursday after the paper and packaging giant reported a 3% revenue increase, as robust sales volumes and recent acquisitions successfully offset a sharp decline in global pricing.

Mondi Shares Surge as Volume Growth Defies Packaging Slump

Mondi reported revenue of 7.66 billion euros ($9.03 billion) for 2025, a result driven by higher sales output and the integration of newly acquired assets. This growth occurred despite what the firm described as "sharply lower prices" for pulp and uncoated fine paper, which have pressured margins across the industrial sector.

Profitability and Market Resilience

The earnings report highlighted the cost of maintaining market share during a prolonged downturn. Pretax profit fell to 269 million euros from 378 million euros a year earlier, hampered by rising operational expenses. On an underlying basis, which strips out exceptional items, pretax profit stood at 375 million euros. Investors, however, focused on the volume recovery, sending shares up 3.1% to 952.80 pence in early European trading.

The company acknowledged that the current market contraction is lasting longer than previous cycles but remains optimistic about its long-term trajectory. According to the board, Mondi is leveraging recent capacity expansions to offset external pressures. The group identified three core pillars for its near-term stability:

    • Disciplined volume growth through expanded infrastructure.
    • Rigorous margin management to protect the bottom line.
    • Aggressive cost optimization across its global operations.
Management remains confident in the structural growth drivers of the packaging industry. The report states that Mondi is now strongly positioned to capture significant upside as global market conditions eventually improve.
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