This reflects both the strong operating performance and reasonable trading environment, particularly in Packaging Paper and the South Africa Division, and the benefit of the Group's strategic acquisitions completed in the latter part of the previous year.
Excluding the impact of the major strategic acquisitions, underlying operating profit increased by 12% compared to the second half of 2012 and 24% on the comparable prior year period. The period under review also benefited from the absence of any major mill maintenance shuts.
Compared to the first half of 2012, sales volumes increased across all major paper grades. While European demand remains generally sluggish, this was compensated by market share gains, and in the case of kraft paper, strong gains in export markets. A reasonable industry supply/demand dynamic, supported by some supply side rationalisation, enabled Mondi Group to maintain or increase selling prices in most key paper grades during the period.
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