Mondi share jumps after resumption of dividend payments
Paper and packaging group Mondi is set to fork out about €236m (about R4.9bn) to shareholders in September, saying it has resumed dividend payments due to optimism about its resilience amid the Covid-19 pandemic.
In morning trade on Thursday, Mondi’s share had jumped 5.95% to R338.84, on track for its best one-day performance since March.
Mondi, which has a market capitalisation of R155.3bn, had suspended dividends in April due to Covid-19, but most of its businesses have been able to operate as essential services, providing packaging to the food and health-care industries.
The €236m figure includes a 29.75 euro cents per share dividend relating to the 2019 financial year, and 19 euro cents for its half-year to end-June — about a 30% fall for the interim dividend.
The group, which operates about 100 plants in about 30 countries, said it was “well positioned for recovery with resilient business model, cost-advantaged asset base, strong balance sheet and unique portfolio of sustainable packaging solutions”.
“The board recognises the importance of dividends to shareholders,” CEO Andrew King said.
“Having delivered a robust trading performance in the first half of the year and given our resilient business model and strong financial position, the board has revisited the decision taken in April to suspend the final 2019 dividend and is pleased to resume the payment of dividends,” he said.
Group revenue fell 8.45% to €3.45bn (R71.86bn) to end-June, with profit falling about a quarter to €360m (R7.49bn). — BusinessLIVE
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