Mondi Share Discussion Threads

[leeson31] 07/8/2014 10:07

cheers Phil!

[philanderer] 07/8/2014 10:05

Many thanks Lees. I`m holding tight to these :-)

Here`s Davy:


Mondi

Reports growth in H1; strong cash flow supports higher dividend and capex; positive outlook as price increases announced

August 7 2014 Morning briefing

SECTORS: Paper & Packaging

COMPANIES: Mondi

DAVY VIEW

Mondi Group reported solid growth in its H1 profits, driven largely by its Packaging Paper and Fibre Packaging businesses. Its Consumer Products and Uncoated Fine Paper divisions continue to disappoint. Containerboard price increases announced by the company should help to drive further momentum in earnings despite the weaker divisions. Combined with on-going strong cash generation, this informs our 'Outperform' rating.

H1 results ahead of forecasts as Packaging Paper division and South Africa outperform

Mondi Group reported H1 EBITDA of €553m, in-line with our €554m forecast, and underlying operating profit of €377m, 3% ahead of our €366m forecast and 3% higher than the same period last year. Underlying EPS of 51.9c was 5% ahead of last year, and the company increased its interim dividend by 39%.

The Packaging Paper division recorded a strong performance with EBITDA of €209m, well ahead of our €176m forecast, driven by 2% growth in containerboard demand and recycled containerboard prices which were 10% ahead of the same period last year.

Performance of the Fibre Packaging division, which includes the corrugated operations, was also ahead of last year although slightly behind our forecast.

The South African division also continued to perform strongly. The Consumer Products business reported EBITDA of €60m, below our €64m forecast and the €63m reported in the same period last year.

This includes the Nordenia businesses, acquired in 2012, which have not performed as well as expected. Management indicates that performance is not expected to improve in the short term given the difficult trading environment.

The Uncoated Fine Paper business was also below forecast, suffering from lower volumes and selling prices.

Strong cash generation supports growth in dividends and capex

The generated cash from operations of €439m in the period represent a conversion from EBITDA of almost 80%.

This on-going strong cash generation is presumably the main driver of the 39% rise in the interim dividend and also the further increase in capex guidance to €550m from €500m for the next couple of years.

Outlook positive as containerboard price increases announced

The outlook, while vague, is reasonably upbeat.


Management confirmed plans to increase recycled containerboard prices by €60/tonne in August and kraftliner prices by €40/tonne in September. This announcement clearly raises the probability of the industry being successful in its attempt to increases prices and will continue to drive profit growth for Mondi Group.

[leeson31] 07/8/2014 09:15

actually, about 980-960p for area of support:

[leeson31] 07/8/2014 09:13

bit sever drop eh, given the vols so far:



IF it reverses today, it'll leave a short term double bottom on the daily candle chart... IF it doesnt reverse today and closes ~999p or less, then probably ~950p on the cards.

its on about ~15 x last FY earnings, but given that earnings this current Fy are up ~5pc at the half-way stage, id say the PE is probably now about ~14 x

Historically this sector has enjoyed mid/high PE's...

"Half-yearly results for the six months ended 30 June 2014

Highlights

* Steady improvement in all key financial metrics

*
+ Underlying operating profit of EUR377 million, up 3%

+ Underlying earnings of 51.9 euro cents per share, up 5%

+ Cash generated from operations of EUR439 million, up 2% "



cheers

[philanderer] 07/8/2014 09:08

Not able to hold 1000p.. looking a bit iffy now... 4 month low for FTSE100

Lees , would next support for MNDI be around 970p ?

[enami] 07/8/2014 06:34

The interim dividend of 13.23 euro cents will be paid on 16 September 2014 to those shareholders on the register of Mondi plc on 22 August 2014.

XD 20 August

[philanderer] 01/8/2014 16:29

Could have been worse I suppose. Big chart looking ok :-)

[philanderer] 01/8/2014 08:37

Jeez , I`ve nearly had enough of this. And this with a profits upgrade a few days ago as well !! :-S

[philanderer] 30/7/2014 19:58

Thanks for that Lees.

-----

Mondi Plc (LON:MNDI)'s stock had its "outperform" rating restated by Credit Suisse in a research note issued on Wednesday. They currently have a 1215p price objective on the stock.

[leeson31] 30/7/2014 15:15

aye, i was checking at lunch time and i think ~1050 would be support



being the support point from 3 sessions prior...

[philanderer] 30/7/2014 15:13

Blimey this is aggravating at the moment !

One step forward two steps back.

[philanderer] 29/7/2014 19:29

Mondi Plc (LON:MNDI)'s stock had its "buy" rating restated by investment analysts at Jefferies Group in a note issued to investors on Tuesday. They currently have a 1325p price objective on the stock

[leeson31] 29/7/2014 13:02

lol indeed :-)

hopefully this run can get to the 1130p area....

[philanderer] 29/7/2014 12:47

Better to be lucky than good ;-)

[leeson31] 29/7/2014 12:26

lucky for once! ::-)

[philanderer] 29/7/2014 11:10

Lees, top call of yours on that 1025p recently :-)

[leeson31] 29/7/2014 08:31

op profit above 367euros M :-)

[philanderer] 29/7/2014 08:10

Morning Lees , good news :-)

[leeson31] 29/7/2014 06:20

Mondi Group: Trading Statement

In terms of paragraph 3.4(b) of the Listings Requirements of the JSE Limited,
companies are required to publish a trading statement as soon as they become
reasonably certain that the financial results for the period to be reported on
next will differ by at least 20% from those of the previous corresponding
period.

Mondi is currently finalising its results for the half year ended 30 June 2014,
which will be released on 7 August 2014. It can now be confirmed that
underlying operating profit for the half year ended 30 June 2014 is expected to
be above that of the comparable prior year period of EUR367 million.

In the six months ended 30 June 2013, the Group recognised a net special item
charge after tax of EUR68 million. The net special item charge for the six
months ended 30 June 2014 is around EUR16 million, relating to restructuring
activities in the Group's Coatings business and a net charge on early
redemption of the EUR280 million Eurobond, partly offset by the release of a
previously recognised provision for transaction costs.

Accordingly, Mondi advises that it expects earnings per share (EPS) for the
half year ended 30 June 2014 to be within the ranges shown below:

* basic underlying EPS (euro cents) 49 to 54 (2013 49.4)

* basic EPS (euro cents) 46 to 51 (2013 35.3)

* basic headline EPS (euro cents) 46 to 51 (2013 45.7)

[philanderer] 28/7/2014 11:19

Mondi Plc (LON:MNDI)'s stock had its "outperform" rating restated by equities researchers at Avior Research in a research report issued on Monday. They currently have a GBX 1,288 ($21.87) target price

[philanderer] 22/7/2014 08:39

Credit Suisse cuts target to 1215p from 1310p .. retains 'outperform'

[leeson31] 18/7/2014 11:44

fingers crossed :-)

[philanderer] 18/7/2014 11:41

Mondi Plc (LON:MNDI)'s stock had its "outperform" rating restated by Credit Suisse in a research note issued on Friday. They currently have a GBX 1,310 price target on the stock

[philanderer] 18/7/2014 11:39

Afternoon Lees, it`s doing it`s best to claw back above that 1025p .

[leeson31] 18/7/2014 11:04

rising a tad from the days low.. hopefully it can move up from here now..