Mondi’s profit before tax grew 28% to €983m in 2021 as growth accelerated for their sustainable packaging offering.

The group’s revenue saw a rise of 16% from €6.6bn in 2020 to €7.7bn in 2021. Underlying EBITDA increased to €1.5bn from €1.3bn YoY.

The groups financial performance was a reflection of higher sales volumes due to growth in demand for corrugated packing and flexible packing. Selling prices of the products were also increased to compete with inflationary cost burdens. The highest result in new selling prices came from corrugated packaging.

To encourage the growth trend in the packaging markets, a significant lineup for capital investments have been set up, including €1 billion in expansionary projects that have been authorised or are being evaluated.

Strong financials of the group lead the board to recommend an increase in full year dividends grew 8% from €0.60 to €0.65 YoY.

ESG

ESG measures launched Mondi Action Plan 2030, which is a sustainability roadmap. The company will continue to focus on climate resilience, zero deforestation in its wood supply, procuring wood sustainably from healthy and resilient forests, and protecting biodiversity and water resources in its activities and beyond as part of the MAP2030 strategy.

The group has committed to working towards the 1.5°C event with the goal of Net-Zero by 2050.

Sale of Business

Divestment of their business, personal care components (PCC), created an enterprise value of €615m. Due to Mondi’s strategic approach on packaging and PCC’s low overlap with the rest of the company, they felt that the next phase of PCC’s development will be best carried out from outside the Group.

The group has major activities in Russia, which will account for roughly 12% of Mondi’s sales in 2021. They also have a plant in Syktyvkar, which is a high-margin, cost-competitive integrated pulp, packaging paper, and uncoated fine paper mill. Russia accounts for 20% of group EBITDA.

“Mondi delivered strongly in 2021 and we see good opportunity to accelerate growth in sustainable packaging. Underlying EBITDA of €1,503 million was up 11% and ROCE up at 16.9%. We grew our packaging businesses and saw a recovery in uncoated fine paper markets. Our vertical integration, the agility of our operations and collaboration with our customers ensured we met surging demand at a time when supply chains were under pressure around the world. We implemented price increases across all our businesses and, against a backdrop of rising commodity input costs, we exhibited good cost control. Our focus on safety and protecting the wellbeing of our people remains our priority,” commented Andrew King, Chief Executive Officer, Mondi Group.

Mondi shares are trading down 1.9% at 1491p post the open on Thursday morning.

Tyman plc saw its share price rise 3.4% to 365p after it reported strong financial results on Thursday morning.

The company enjoyed a 17% increase in revenue to £635.7 million against a figure of £572.8 million in 2020.

Tyman reported an adjusted operating profit of £90 million against an £80.3 million result in 2020, alongside a pre-tax profit of £64 million compared to its £47.6 million figure in 2020.

The home products company said an increase in market share and strengthen demand helped boost revenue.

Investors also saw a record dividend per share of 12.9p against a payment of 4p in 2020.

Tyman commented that it had achieved its performance goals despite industry-wide challenges to its supply chain, alongside labour restrictions and input cost inflation.

“The Group’s performance was robust, with strong market momentum and share gains delivering growth in spite of well-publicised supply chain challenges, labour constraints and input cost inflation,” said Tyman CEO Jo Hallas.

“We expect underlying demand in 2022 to remain strong, driven by favourable housing market fundamentals, albeit set against rising macroeconomic and geopolitical pressures.”

“We continue to take actions as necessary to mitigate ongoing industry-wide supply chain challenges and cost inflation.”

“The Group is well positioned for growth in 2022 and beyond, benefiting from long-term structural industry growth drivers, our strategic initiatives and building on our portfolio of differentiated products, market-leading brands and deep customer relationships. “

The Lloyds share price has provided investors with an opportunity to enter the UK banks following a sharp decline from highs of 56p.

For long-term investors, the recent pull back in Lloyds shares, coupled with their recent market update, may create the perfect scenario for those considering a purchase of the bank’s shares.

Lloyds share price

Lloyds shares are currently trading just above 45p – the lowest level since December 2021 – having dropped nearly 20% from recent highs around 55p.

This dip will provide a great opportunity for investors who have digested Lloyds recent report and are optimitic about their outlook.

Lloyds reported a 9% increase in Net Income to £15.8bn and enjoyed a rise in return on tangible equity to 13.8%.

This reflected an improvement in trading conditions in 2021 as the bank recovered from the pandemic.

Lloyds reported a statutory profit before tax of £6.9 billion and statutory profit after tax of £5.9 billion which was helped by increased income and the reversal of bad debt provisions made during the pandemic.

Lloyds also said they were hoping to put the HBOS issues to bed by making provisions for the total estimated cost of charges.

However, Lloyds shares have since plummeted, not solely because of disappointment around their earnings, but the impact of geopolitics on markets and interest rate expectations.

Lloyds Net Interest Margin

Lloyds saw Net Interest Income rise 4% to £11.2 billion in 2021 and there will be expectations this increases further in 2022.

This argument can be justified by the expectations of higher interest rates, and because of recent strong performance in their lending business.

Lloyds saw their Net Interest Margin rise to 2.54% in 2021 from 2.52% in the year prior.

Although the crisis in Ukraine may dampen the Bank of England’s enthusiasm for the number of interest hikes in 2022, Lloyds will already be enjoying the impact of two rates hikes in recent months.

Lloyds dividend

Notwithstanding hopes for increased earnings, an important attraction for long-term holders of Lloyds shares is the banks progressive dividend policy.

Lloyds paid a dividend of 2p for 2021 which would equate to a 4.4% yield with Lloyds share price at 45p.

Given Lloyds are once more embarking on a progressive dividend policy as the impact of the pandemic diminishes, buyers at 45p will likely see their yield increase as dividend payouts rise.

Lloyds Shares Valuation

With a Lloyds share price of 45p, the bank is trading at just 5.9x historical earning and 7.1x forward earnings.

Although UK banks are increasingly valued on their price-to-book multiples, the potential for Lloyds PE Ratio to move back inline with historical averages suggests Lloyds shares have plenty of upside.

Hotel Chocolat reported an increase in revenue of 40% to £142.9 million against its H1 2021 sales of £101.9 million.

The chocolate company also noted an underlying EBITDA increase of 35% to £33.8 million against H1 2021 results of £24.9 million, alongside a profit before tax increase of 56% to £24.1 million against a H1 2021 figure of £15.5 million.

The group’s earnings per share increased to 14.2p compared to a H1 2021 dividend of 9.7p.

The company saw a 38% increase in active UK customer database to 2.3 million, and the brand’s joint-venture with Japan saw a 131% increase in consumer sales.

“I am delighted that we have achieved a great set of results both in terms of sales and profits, indicating the global strength of the Hotel Chocolat brand and our direct-to-consumer business model,” said Hotel Chocoalt CEO Angus Thirlwell.

“These results enable continued new job creation based in our British manufacturing operations, as well as roles in technology and multi-channel retailing.”

“We have remained focused on our opportunities, delivering a sustained acceleration in growth over the last 18 months.”

“Since the end of the financial reporting period, trading has continued to be in line with the Board’s expectations. The multi-channel performance of the UK remains encouraging, and the new markets continue to show promising potential for growth and profitability.”

Hotel Chocolat’s shares declined 2% on Wednesday trades despite the company reporting strong interim results for H2 2021.

Aviva is reportedly set to acquire Succession Wealth for a consideration of £385 million, according to an announcement from the Group on Wednesday.

The multinational insurance company’s share price saw a rise of 1.6% at noon to 413.1p.

The consideration will reportedly be paid in cash, and is expected to deliver a “double digit return on invested capital in the medium term.”

The company added that the transaction is anticipated to be completed in H2 2022, subject to FCA approval.

Succession Wealth will reportedly continue its operations as a separately regulated, independent firm under the Succession Wealth brand.

Aviva mentioned that the estimated 2022 EBITDA for Succession Wealth is expected to be around £24 million, on a pro forma basis.

“The acquisition of Succession Wealth boosts Aviva’s presence in the fast-growing UK wealth market; supports our strategy to grow sustainably; and expands Aviva’s ability to offer high quality financial advice to millions of our customers,” said Aviva CEO Amanda Blanc.

Succession Wealth CEO James Stevenson added: “We are delighted to become part of Aviva and to offer our independent financial planning capability to Aviva customers who don’t have an adviser.”

“The demand for financial advice across the entire wealth spectrum has never been greater, and the opportunity to combine Succession Wealth’s holistic financial planning expertise, with the capabilities and customer reach of Aviva is hugely exciting.”