A trading update from paper giant  Mondi (MNDI) on 16 October should afford investors an opportunity to gauge how the £3.69 billion cap is faring. Ongoing pricing momentum is the focus as improving fundamentals continue to drive economic recovery and packaging demand.

Investors should be on the lookout for September price increases after the group achieved increases of up to €40 per tonne and €30 per tonne in the kraftliner and testliner paper types respectively in August.

MNDI - Comparison Line Chart (Rebased to first)

First half results in August saw Mondi improving return on capital employed to 16% as the group's €3 billion spend on capex and M&A over the past seven years bears fruit.

Geopolitical concerns in the form of exposure to Russia remains a concern with 11% of production and 9% turnover sited in the region but a focus on low cost production and growing exposure to higher growth emerging markets has offsetting potential.

Issue Date: 15 Oct 2014