Mondi makes a bundle

The paper and packaging firm Mondi saw a leap in pre-tax profits in 2011, despite a difficult second half as the firm's markets were hit by economic uncertainty.

Profit before tax rose 37.2% to a record €457m, from €333m the previous year. Revenues were up 2.3% from €5,610m to €5,739m.

Basic earnings per share rose 57.5% from 45.6c to 71.8c.

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Chief Executive David Hathorn said: "Our strong cash flow generation through the cycle enables us to ensure our asset base remains appropriately invested and exploit value adding growth opportunities, whilst maintaining our investment grade credit ratings and increasing returns to shareholders.

"In this regard, we have approved investments in certain high return energy and de-bottlenecking projects and launched a tender offer for the non-controlling interest in Mondi Swiecie."

The board has recommended a final dividend of 17.75 cents per shares, meaning a total dividend for the year of 26.0 cents per shares for the year, up 30% on 2010.

The share price rose 0.78% to 581.00p by 12:55.

NR