Mondi has reported loss in the first half of 2026 (H1 2026), hit by asset impairment charges, lower average selling prices, and rising input costs.
The packaging company’s net loss for the period attributable to shareholders stood at €255m ($293.95m), compared with a profit of €63m in H1 2025.
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It posted operating loss of €178m in H1 2026, reversing an operating profit of €303m in the same period of 2025.
Revenue for the half-year edged up to €3.98bn from €3.91bn, primarily due to contributions from acquired Schumacher plants, while underlying EBITDA [earnings before interest, taxes, depreciation and amortisation] dropped to €379m from €564m.
For H1 2026, the group recorded an operating loss of €178m, against an operating profit of €303m a year earlier.
In corrugated packaging, underlying EBITDA came to €148m, with a margin of 7.5%, down from €284m and 15.0% in H1 2025.
The decline reflected lower average selling prices, increased energy costs and a forestry fair value loss of €35m in the period, compared with a forestry fair value gain of €18m in the prior-year period.
Flexible packaging generated underlying EBITDA of €251m, with a margin of 12.4%, versus €302m and 14.8% a year earlier.
The converting businesses recorded resilient performances, while in kraft paper, higher volumes were more than offset by lower average selling prices and increased wood and logistics costs.
Tax paid totalled €28m, compared with €40m in H1 2025, while interest paid rose to €86m from €50m.
Net debt stood at €2.6bn on 30 June 2026, little changed from €2.5bn at 31 December 2025.
Net debt to underlying EBITDA was 3.2 times at the end of June 2026, compared with 2.6 times at the end of December 2025, due to lower 12-month trailing underlying EBITDA.
The company lowered its expected full-year 2026 capital expenditure to about €500m from €550m previously.
It also booked a pre-tax special item charge of €320m linked to impairments and restructuring, with an expected cash effect of €24m.
In April 2026, an agreement was signed for the disposal of the remaining assets and liabilities of the Stambolijski paper mill in Bulgaria.
The site stopped operating after the fire in September 2024. The deal is expected to complete in H2 2026, subject to customary closing procedures, and the related assets and liabilities were classified as held for sale as at 30 June 2026 under International Financial Reporting Standards (IFRS).
Mondi Group CEO Andrew King said: “We took strong pricing actions, maintained cost discipline, progressed our plant network optimisation programme and continued to drive operational excellence across the business.
“Heightened geopolitical tensions in the Middle East caused supply chain disruptions and contributed to higher input costs. Our teams acted quickly to protect operational continuity, support customers and implement price increases across our packaging and paper products.”
