Mondi Share Discussion Threads

[moorsie2] 01/4/2021 14:21

BRUSSELS, April 1, 2021 (PPI Europe) - Brown kraftliner set for further gains: Demand for brown kraftliner remained strong in March across Europe and the supply/demand situation deteriorated further in southern markets more exposed to US supplies, sources said. Prices held steady in Germany and France, with an expected Euro 50/tonne hike to come in April. Brown kraftliner imported from the US remained scarce, with prices rising for the sixth straight month in March, up an average of Euro 25/tonne, sources said. Europeans also hiked their prices by Euro 20-25/tonne in March, reaching a total increase of Euro 85-90/tonne in Italy and Euro 95-100/tonne in Spain since Q4 last year. Another Euro 50/tonne hike is slated for April and many sources expect it to go through in one go. RCCM prices jump: The recycled containerboard (RCCM) market did not show any signs of slowing in March, with reports of strong demand but slightly more stable supply across Europe, sources said. As RCCM suppliers tried to catch up on soaring paper for recycling costs, prices rose by Euro 30/tonne in Germany and Euro 20/tonne in France, amounting to cumulative hikes of Euro 140/tonne and Euro 150/tonne, respectively, since Q4. A further Euro 50/tonne increase is slated for April. In the UK, prices rose by £50/tonne in February/March and another £50/tonne hike is expected in April. In Spain, testliner prices rose by Euro 50/tonne as of mid-March, while they grew by Euro 20-30/tonne in Italy, reaching a total increase of Euro 160/tonne and 90-110/tonne, respectively, since Q4. White-top testliner prices went up by a total of Euro 50/tonne over February and March in Germany and France, and by Euro 25-30/tonne in Italy and Spain over the same period.

[moorsie2] 30/3/2021 16:35

will be back to 21 plus by end of Q2 - 3 months time Bumper year in paper and packaging

[thamestrader] 26/3/2021 14:14

briefly touched 1900p

[moorsie2] 27/2/2021 16:46

EI - the numbers are clear. Mondi make more margin percentage than SKG in paper packaging. SKG has more scale in this sector as in 2006 Smurfit and Kappa came together to create the market leader. Smds and mndi coming together is an essential step but I do not think the ego of the smds management will endorse it

[essentialinvestor] 26/2/2021 13:02

Savage reaction. Moorsie, SKG are growing earnings though and quickly unless I've misread their recent results?.

[moorsie2] 26/2/2021 10:36

Fortune favours the brave... go big or go home :)

[energeticbacker] 26/2/2021 10:07

Investor's Champion comments: Perhaps a bigger worry is that a major acquisition could prove challenging to digest. We're not entirely convinced by the case for a combination with DS Smith. Whereas BAE Systems' acquisitions last year were little more than bolt-ons, DS Smith is of comparable size to Mondi. Combining the two would be a greater challenge, with more scope for value destruction.

[moorsie2] 25/2/2021 17:40

EI - depends what you compare.... Look at the segmented p&l in Mondi. Their returns on corrugated packaging is much higher than SKG. Their total results are diluted by fine paper division mostly. The main reason tbeir packaging returns are better than SKG is because they are more mill than conversion and more superior mills too than SKG. They need more downstream conversion assets hence why SMDS is attractive to them

[essentialinvestor] 25/2/2021 13:33

Moorsie, why the significant divergence in results between SKG and Mondi. SKG appears to be significantly outperforming?.

[moorsie2] 25/2/2021 08:40

Actually they are very good results if you look into the segment results. Uncoated fine paper is the serious drag and it is picking up. Also strong price increases in Kraft packaging papers which flows to the bottom line in Mondi better than any other market player.

[thamestrader] 25/2/2021 08:26

Slightly underwhelming results. I think I was expecting more, but only based on the enormous quantity of packaging that has been left on my doorstep over the last year. But hey, steady as she goes.

[cw2000] 24/2/2021 20:32

Mondi Weighs Deal for $7 Billion Packaging Rival DS Smith By Dinesh Nair, Ruth David, and Kiel Porter February 24, 2021, 8:13 PM GMT+1 Tie-up would be one of the largest U.K. deals so far this year Pandemic e-commerce boom boosts demand for cardboard boxes In this article MNDI MONDI PLC 1,802.00GBp+35.00+1.98% SMDS DS SMITH PLC 384.00GBp+12.20+3.28% Mondi Plc, the packaging and paper group, is exploring a potential takeover of British rival DS Smith Plc, according to people familiar with the matter. Mondi has been speaking with advisers as it considers the merits of a possible transaction, the people said, asking not to be identified because the discussions are private. DS Smith shares have risen 2.5% in London trading this year, giving the company a market value of 5.3 billion pounds ($7.4 billion). A deal between the two companies would be one of the largest announced in the U.K. so far this year, data compiled by Bloomberg show. Deliberations are at an early stage, and there’s no certainty they will lead to a transaction, the people said. Representatives for Mondi and DS Smith declined to comment. While a pandemic-fueled boom in online shopping has provided a demand boost for packaging companies, it has also led to piles of used cardboard that can’t be picked up and recycled quickly enough. That has pushed up costs for companies including DS Smith, which rely on recycled containerboard to make their boxes.

[redips2] 23/2/2021 10:28

Let’s hope at least they are half decent

[moorsie2] 26/1/2021 12:59

Full year results 25th Feb

[moorsie2] 05/1/2021 09:38

Looks like a great deal , bought cheap and can consolidate the market. Win win

[thamestrader] 05/1/2021 07:54

Interesting RNS regarding Turkish acquisition. Not huge or earth shattering, but interesting. 5 January 2021 Mondi to acquire Olmuksan, a leading Turkish corrugated packaging player Mondi has agreed to acquire 90.38% of the outstanding shares in Olmuksan International Paper Ambalaj Sanayi ve Ticaret A.S ("Olmuksan" or the "Company") from International Paper for a total consideration of EUR66 million. The implied enterprise value on a 100% basis would amount to around EUR88 million. Olmuksan is a leading and well-established corrugated packaging player in Turkey, listed on the Istanbul stock exchange. Its network of five plants provides a diverse customer base with high-quality sustainable packaging for food, beverage, agriculture and industrial applications. For the twelve months ended 30 September 2020, the Company produced 256 thousand tonnes of corrugated packaging and generated revenues of TRY1,093 million (EUR150 million). Mondi has operated successfully in Turkey for many years and has developed a strong understanding of the market and its long-term opportunities. Our current Turkish footprint includes four corrugated packaging plants and a recycled containerboard paper mill, as well as three flexible packaging sites. Leveraging our expertise and experience in this market, together with our global virgin and recycled containerboard portfolio, we expect to generate significant operational improvements and paper integration upside. Commenting on the acquisition, Andrew King, Group Chief Executive Officer of Mondi, said: "We are excited by this unique opportunity to significantly strengthen our position in the fast-growing Turkish corrugated market and expand our offering to existing and new customers in the region." The transaction remains subject to competition clearance and other closing conditions and is expected to complete in the first half of 2021. Following the completion of the transaction, Mondi will launch a mandatory tender offer to acquire the remaining 9.62% of outstanding shares in the Company held by minority shareholders.

[redips2] 15/12/2020 13:27

Cheers Enami.

[moorsie2] 15/12/2020 11:00

The market fundamentals are very strong and should give support above 2000

[enami] 15/12/2020 10:44

Target from post 889 reached. Next upside target from much longer timescale 2055 - 2069. ATH 2250 WEEKLY CHART free stock charts from uk.advfn.com

[essentialinvestor] 03/12/2020 14:43

Second from me, many thanks. MONDI has underperformed SKG by nearly 20% on the 12 month.

[redips2] 03/12/2020 12:47

Will hold my power dry until then. Thank you Enami.

[enami] 03/12/2020 12:46

Hi Redips... it is not a large gap (3p) and halfway through a strong upwave. Bad results on 25 Feb could easily knock it back there or lower. Current upside target (late 2019 high) 1794 to 1824 free stock charts from uk.advfn.com

[essentialinvestor] 03/12/2020 11:30

Added a small amount, a dip back down towards £16 may be an opportunity.

[redips2] 03/12/2020 11:17

Hi Enami... any thoughts about that gap around 1610 ...cheers

[moorsie2] 28/11/2020 08:29

With the conditions in the paper market now, Mondi are in a great strategic space...