TheMondiGrouphasshown
overallpositivefinancial
resultsforthehalf-yearended
30 June,despitefacinga number
ofchallenges,including
aninternationalcorporate
simplificationprocess,and
a declineinrevenuefromits
SouthAfricanoperations.
Mondirecentlycompleted
thesimplificationofitsdual-
listedcompanystructure,
comprisingMondiPLCand
MondiLtd,intoa singleholding
companystructure,MondiPLC.
ThenewMondiPLCshares
commencedtradingon 29 July.
MondiGroupCEO,Peter
Oswald,saidina statement
thatduringtheperiodunder
review,thecompanybenefitted
fromhigheraverageselling
prices,contributionsfromcapital
investmentsandacquisitions,
anda higherforestryfair-
valuegain,toincreasegroup
revenueto€3,77billion
(aboutR63,65billion)from
€3,72billion(R62,91billion)inthe
correspondingperiodin2018.
Morepositiveresultsincluded
underlyingearningsbefore
interest,tax,depreciationand
amortisationof€894million
(R15,09billion)[30June
2018:€852million];and
underlyingoperatingprofit
of€679million(R12,98billion)[30June2018:€630million).
Thislatestperformancesaw
thebasicunderlyingearnings
ofMondisharesincrease
8%duringtheperiod.
OswaldsaidthatMondi’s
recent“strongperformance”
wasdespitewoodcostsbeing
generallyhigherthanduringthe
firsthalfof2018,andalsodespite
higherchemicalandenergy
inputcostssofarthisyear.
Duringthefirstsixmonthsof
theyear,Mondi’sSouthAfrican
operationsshoweda decline
inexternalrevenuebylocation
ofproductionto€260million
(R4,38billion)[30June2018:
€283million],andinexternal
revenuebylocationofcustomer
to€199million(R3,35billion)
[30June2018:€228million].
LookingtowardsMondi’s
performanceduringthesecond
halfofthisyear,hesaid“ongoing
macroeconomicuncertainties
continuetoimpactonthe
tradingenvironment.Demand
is generallysofteracrossthe
marketsinwhichweoperate,
whilepricesofkeypapergrades
arecurrentlybelowthoseofthe
firsthalf.Furthermore,weexpect
a significantlylowerforestryfair-
valuegaininthesecondhalf.Our
focusoncontinuousimprovement
is expectedtolessentheimpactof
thesepressures.”–StaffreporterGeneeditingtechnologycan
result in more environmentally
friendly farming practices and
a reduction in chemical use.
This was according to Dr Jim
Bradeen, head of plant pathology
at the University of Minnesota in
the US. Addressing the media on
the importance of the technology,
he said gene editing was crucial
to increase genetic diversity in
food crops, which would result
in greater resilience against pests
and a reduction in pesticide use.
“Modern breeding is crucial
to feed the world; it has given
us nutritious and tasty food
with yield improvements, but
diversity has been reduced,
and this is a threat to global
diversity and food crops.”
He said gene editing could
assist in identifying the genes
that were crucial for crop
diversity, while still ensuring
taste, quality and high yields.
“Through this technology we
have been able to define what
disease-resistant genes look like,
and can then make them more
pronounced without adding
additional DNA, as is the case
with genetic modification. The
plants then start looking like
the earlier varieties that were
naturally resistant to diseases,
before they were bred for
domestic use. Ultimately, this
will mean more natural farming
practicesandlesschemicaluse.”
Bradeensaidthatby2050,
therewouldbe12,5million
annual deaths due to
starvation and malnutrition.
“The biggest growth in
population will occur in areas
that will suffer the most adverse
climate change challenges, and
as a result, food insecurity.
“We need genetic improvements
of crops to overcome the
challenges, and improve crop
production.” – Lindi Botha
BusinessMondiovercomes hurdlesto
poststrong half-yearresults
Technology
‘Gene editing will
reduce chemical
use on farms’
ABOVE:
The Mondi Group
weathered an
international
corporate
simplification
process, as well
as a decline in
revenue from
its South African
operations, to
produce overall
positive financial
results for the
half year.
Mondi Group23 August 2019 farmer’sweekly 15