Mondi sees first-half earnings advancing as much as 28%

Johannesburg - Mondi [JSE:MND], the largest producer of kraft paper and industrial bags in Europe, said first-half profit climbed as much as 28%.

Earnings excluding one-time items for the six months through June 30 probably increased 25% to 35%, to as much as 70 euro cents, the Johannesburg-based company said in a statement on Tuesday.

Mondi expects to record a net after-tax charge of about €36m (R499.82m) for the period, related mainly to the closure of plants in Finland and Spain.

The ranges provided by Mondi suggest better-than-expected earnings, probably driven by the company’s capital investment programme, Justin Jordan, a London-based analyst at Jefferies Group, said in a note on Tuesday.

Mondi, which said in May its projects were all on schedule and within budget, will report first-half results on August 6.

The shares have risen 56% this year in Johannesburg and reached a record high on July 24. They increased 0.9% to R295.38 by 09:05 in Johannesburg.