Mondi slashes annual dividend by sixty percent following profit decline
The packaging firm reduced its payout following a drop in core profit amid weak demand. It plans to focus on cost savings after cutting 1,000 jobs last year.
Insights:
Mondi plc announced on February 19, 2026, that it has cut its 2025 dividend by about 60 percent. The announcement, which was made alongside the release of the company's annual results, follows a reported drop in annual adjusted core profit. This significant reduction in shareholder payouts reflects a weakened earnings position for the firm, which is a major participant in the paper and packaging industry.
The decline in adjusted core profit was attributed to tepid demand and low prices across the pulp market. These factors have negatively impacted the company's financial performance, prompting a shift in strategy. Mondi plc stated that it will now prioritise cost savings to navigate the current economic climate.
