Nucor earnings beat by $0.08, revenue fell short of estimates
Investing.com -- Shares of Mondi (LON:MNDI) climbed 4% today, even as the company reported full-year 2024 earnings before interest, taxes, depreciation, and amortization (EBITDA) of €1,049 million, falling short of Bloomberg consensus estimates.
Investors appeared to look past the earnings miss, focusing instead on the company’s positive outlook and price increases for its packaging paper products.
Mondi’s financial results highlighted a mixed performance across its various segments. The Corrugated Packaging (NYSE:PKG) unit saw its underlying EBITDA increase by approximately 6% year-on-year (YoY) to €328 million, benefiting from reduced input costs and higher average selling prices in the second half of the year.
However, the Flexible Packaging segment experienced a decline, with underlying EBITDA dropping by about 12% YoY to €558 million due to lower average selling prices and inflationary pressures.
The company’s Uncoated Fine Paper business was also negatively affected, showing a significant decrease in forestry fair value gain, which resulted in EBITDA of €198 million compared to €289 million in the previous year.
Looking ahead to 2025, Mondi anticipates capital expenditures in the range of €750-850 million, with depreciation and amortization expected to be €450-475 million. The company’s net debt to EBITDA ratio of 1.7x as of December 2024 is projected to increase in the short term following the acquisition of Schumacher Packaging.
Despite the near-term increase in debt, Mondi signaled improving order books across its packaging businesses and the implementation of price increases across its range of packaging paper grades.
Analysts at Barclays (LON:BARC) commented on the results, saying, "we expect the shares to react negatively and consensus estimates for FY25 to move down closer to our estimate given the macro and geopolitical uncertainty."
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