Mondi PLC (LSE:LON:MNDI), the paper and cardboard maker, said its first half pre-tax profit and revenue grew given a significant increase in margins, good selling prices and cost control measures under "challenging conditions".
An interim dividend of 21.67 euro cents per share has been declared, up 8% on the prior year.
The FTSE 100 company said group revenue jumped €4.50bn compared with €3.28bn, while pre-tax profit for the half year rose to €933mln from €354mln for the same period a year ago.
Underlying earnings (EBITDA) was €942mln compared to €566mln in the prior period.
"Performance was strong across the group in the first half of 2022, with underlying EBITDA from continuing operations of €942mln, up 66% year-on-year," said Andrew King, chief executive.
"We achieved strong price realisation while maintaining tight cost control against a backdrop of strong inflationary pressures."
Wood costs in Central and Eastern Europe were said to be materially higher, with increasing demand for firewood as an alternative energy source to fossil fuels, coupled with reduced supply due to less 'calamity wood' on the market and the impact of sanctions on Russian and Belarusian timber.
The company said the group’s operations in Russia are being held for sale after being discontinued as of June 30, having made EBITDA of €228mln in the first half of the year compared to €143mln in the prior period, held for sale.
On the outlook, chief executive Andrew King said: "Pricing remains strong going into the second half, although we do anticipate continued inflationary pressures on our cost base and ongoing supply chain challenges."
He said sustainable packaging continues to be a key priority for customers amid strong end-user demand, for which Mondi is "well placed".
Shares were down 4.57% to 1,536.50p in London.
Analysts at Jefferies said there had been higher buy-side expectations heading into the results, though EBITDA excluding Russia of €482mln was a 7% beat to consensus forecasts.
"However, buy-side expectations moved higher into print to approx €500m, thus it's a c4% miss vs stronger expectations."
But the outlook was said to be "reassuring".