Packaging and paper manufacturer Mondi (Vienna; www.mondigroup.com) said 2021 sales climbed 16% versus the previous year to EUR 7.7 bn, adjusted EBITDA rose 11% to EUR 1.5 bn, and adjusted net income grew 18% to EUR 764 mn.

“We see good opportunities to accelerate growth in sustainable packaging,” CEO Andrew King said. Against the backdrop of sharply increased costs for energy, polymers, recycled paper and transportation, King noted that price hikes were implemented in all business areas last year.

Flexible Packaging, the largest business unit ahead of Corrugated Board, with plastic and paper-based packaging solutions, increased revenues 8% year-on-year to EUR 2.9 bn in 2021. Adjusted EBITDA rose 1% to EUR 526 mn. Growth was driven by strong demand for paper-based shopping bags, e-commerce bags, and flexible plastic food and pet food packaging, according to King.

Related: Mondi's 2020 profits dropped due to Covid-19 lockdowns

In February 2022, Mondi sold its Personal Care Components business to Nitto Denko (Osaka, Japan; www.nitto.com) for EUR 615 mn to focus exclusively on its core packaging and paper business. The transaction is expected to close in the second half of 2022.

Mondi views the Ukraine war with great concern. Over the past three years, its Russian production facilities have accounted for about 12% of group sales and about 20% of adjusted EBITDA, according to the company.

King said: “Our businesses primarily serve the domestic market and have continued to operate through this time of heightened geopolitical tension. We are actively monitoring this rapidly evolving situation, the international response and the implications for the group.”

Mondi said it is currently examining a legal separation of its Russian production facilities. In Ukraine, Mondi operates a paper bag plant in the west of the country that employs around 100 people. Production at the plant has been suspended.