Mondi has reported a decline in first-half performance driven by lower selling prices and higher input costs.

Underlying EBITDA stood at €379 million, including a forestry fair value loss of €35 million, compared with €564 million during the same period last year, according to the company.

Underlying profit before tax also declined, reaching €80 million, compared with €272 million in the first half of 2025.

Cash generated from operations stood at €347 million, down from €416 million during the same period last year, while the underlying EBITDA margin declined from 14.4% to 9.5%.

The group's revenue increased slightly from €3.909 billion to €3.975 billion, which Mondi attributed to the recent acquisition of the Schumacher plants.

Prices Increases And Higher Costs

Geopolitical tensions in the Middle East contributed to higher energy, material and logistics costs.

In response, Mondi announced price increases across packaging and paper products.

However, the group expects to see the full impact of the increased prices by the third quarter of the 2026 financial year.

In addition, Mondi reported higher input costs due to increased costs for wood across Central and Eastern Europe.

Higher costs affected both the group's corrugated packaging business and its flexible packaging business, with underlying EBITDA reaching €148 million and €251 million, respectively.

Outlook

Mondi said it will continue its cost discipline strategy, while focusing on optimizing its converting plant network, planning four further closures in Germany, Poland, Türkiye and Hungary.

The group previously closed two converting plants in Hungary and Germany.

Andrew King, CEO of Mondi Group, said, "During the first half of 2026, we made good progress in delivering actions to strengthen Mondi's performance, cash generation and competitiveness, supported by the strength of our quality product offering, high service levels and the agility and commitment of our people. [...]

"As major expansionary investments are now largely complete, our focus is on disciplined commercial execution to deliver growth, while relentlessly identifying and executing further opportunities to strengthen Mondi's cost competitiveness. [...]"

King added, "Combined with our innovative packaging and paper solutions, our cost-advantaged, integrated assets and our commitment to continuous improvement, Mondi is well positioned to deliver long-term value for shareholders."