OREANDA-NEWS. Mondi Group reports results for six months ended 30 June 2014.

Highlights

Steady improvement in all key financial metrics

o Underlying operating profit of €377 million, up 3%

o Underlying earnings of 51.9 euro cents per share, up 5%

o Cash generated from operations of €439 million, up 2%

ROCE of 16%, well in excess of through-the-cycle hurdle rate of 13%

Acquisition of Graphic Packaging's bags and kraft paper operations consolidates global market leadership position in Industrial Bags

Capital projects

o Recently completed projects delivering on expectation o Ongoing major projects on time, within budget

Interim dividend of 13.23 euro cents per share, up 39%

David Hathorn, Mondi Group chief executive, said:

"The Mondi Group continues to deliver a strong performance, generating a return on capital employed of 16%. Strong cost management and contributions from successfully completed strategic capital investments, together with the benefits from downstream integration in key packaging segments, enabled the Group to offset the impact of lower prices in a number of paper grades.

We have continued to invest in the business for future growth. Highlights for the period included the successful commissioning of the 155,000 tonne bleached kraft paper machine at the Steti mill in the Czech Republic and the acquisition of Graphic Packaging's bags operations and kraft paper mill in the United States. Together with the Group's ongoing capital expenditure programme, including significant projects at our Ruzomberok, Swiecie and Syktyvkar operations, we are confident that these investments will deliver strongly into the future.

In the near term, anticipated price increases in some of our packaging paper grades should provide positive momentum. As in prior years, the second half of the year will be impacted by the planned annual mill maintenance shuts.

Market fundamentals remain sound, which, coupled with a continued economic recovery, should prove positive for further growth in the packaging businesses.

Overall, we remain confident that Mondi will continue to deliver an industry leading performance."

Mondi is an international packaging and paper Group, employing around 26,000 people in production facilities across 31 countries. In 2013, Mondi had revenues of €6.5 billion and a ROCE of 15.3%. The Group's key operations are located in central Europe, Russia, the Americas and South Africa.

The Mondi Group is fully integrated across the packaging and paper value chain - from the management of its own forests and the production of pulp and paper (packaging paper and uncoated fine paper), to the conversion of packaging paper into corrugated packaging, industrial bags, extrusion coatings and release liner. Mondi is also a supplier of innovative consumer packaging solutions, advanced films and hygiene products components.

Mondi has a dual listed company structure, with a primary listing on the JSE Limited for Mondi Limited under the ticker code MND and a premium listing on the London Stock Exchange for Mondi plc, under the ticker code MNDI. The Group's performance, and the responsible approach it takes to good business practice, has been recognised by its inclusion in the FTSE4Good Global, European and UK Index Series (since 2008) and the JSE's Socially Responsible Investment (SRI) Index since 2007.