Mondi, the Anglo-South African paper and packaging firm, has managed to turn around disappointing results at the back end of last year as demand picks up in 2012.
Underlying profits before tax for the first six months of 2012 were €223m, against €157m seen in the six months to the end of December, although in the first half of 2011, the corresponding figure was €300m.
Revenues have grown from €2.797bn in the second half of 2011 to €2.84bn up to the end of June. In the equivalent period of 2011 revenue was €2.942bn.
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Mondi has been hit by falling prices across all grades of paper and although volumes have increased since last winter they are still below the first half of 2011. The group says craft, paper and industrial bags have been the hardest hit.
One key metric for Mondi is "return on capital employed" (ROCE). The company targets 13%, and for the first half of 2012 it came in at 13.3%, which may explain the slight upward nudge enjoyed by tdehe shares, which had gained 0.45% by 8:36.
The biggest issue now for Mondi is its acquisition of packaging rival Nordenia International for a total of €655m (including debt liabilities).
The deal is expected to complete by the end of the year and will be financed by a new €250m debt facility, which was agreed at the end of July.
Net debt at the end of June had increased to €1,273m from €831m at the end of 2011.
Commenting on the results, David Hathorn, Mondi's Chief Executive said: "The macroeconomic environment remains a concern, with continued soft demand evident in certain western European markets. Encouragingly, demand in a number of the emerging markets to which the Group is exposed remains firm."
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