Mondi Group’s profitability declined in 2025, although its revenues grew due to acquisitions and volume gains, despite lower selling prices.
The packaging company has reported a profit before tax of €269m ($316.9m) for 2025, marking a decrease of 29% compared with €378m recorded the previous year.
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Revenue for the period reached €7.6bn, up 3% from €7.4bn in 2024.
The company attributed this rise to higher sales volumes – particularly in containerboard, boxes, and paper bags – along with the addition of revenue from the Schumacher acquisition.
The volume growth was offset by “sharply lower” uncoated fine paper and pulp selling prices.
Underlying EBITDA fell to €1bn from €1.04bn in the prior year.
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By GlobalDataThe EBITDA margin dropped to 13.1%, compared to 14.1% in 2024, due to margin pressures linked to challenging market conditions.
Net debt rose to €2.5bn as of 31 December 2025, up from €1.7bn a year earlier.
Mondi said that the higher net debt was largely due to investments, including the Schumacher acquisition and capital projects.
During the year, Mondi combined its uncoated fine paper operations with corrugated packaging into a single business unit.
For corrugated packaging, segment revenue increased by 7% to €3.8bn.
Underlying EBITDA for this segment was €458m, with a margin of 12.1%, down from €526m (14.9%) in 2024. Containerboard volumes grew, and average selling prices improved compared with the prior year.
Flexible packaging reported a slight decline in segment revenue to €3.9bn (a decrease of 1%), while underlying EBITDA rose to €583m with a margin of 14.8%, up from €558m (14.1%) in the previous year.
Improved cost management and growth in paper bag volumes helped offset lower kraft paper volumes.
The acquisition of Schumacher was completed on 31 March 2025, with integration efforts currently underway. Identified risks include integrating systems and controls as well as addressing differences between corporate cultures.
Over the past year, headcount was reduced by 1,000 through operational efficiencies, plant closures, and a reduction in group services offices by 13%.
An additional reduction of approximately 200 positions is expected following three announced plant closures.
Mondi Group CEO Andrew King said: “We have intensified our focus on operational excellence and cost discipline. Bringing together corrugated packaging and uncoated fine paper has streamlined our organisation and accelerated the delivery of operational synergies.
“Going into 2026, it remains unclear when geopolitical and macroeconomic conditions will improve. Paper prices are modestly lower, on average, than those seen in the final quarter of 2025. We are, however, confident in our ability to navigate these headwinds effectively through disciplined volume growth as we leverage our recent capacity expansions, strong margin management and cost optimisation.”
