The retirement of longtime Mondi Group CEO David Hathorn and his replacement by Peter Oswald — an executive director and CEO of the firm’s Europe and international division since 2008 — signals the end of an era for the global packaging and paper group.
Hathorn, who has led Mondi since 2000, will stand down as CEO and as a director of the dual-listed entities Mondi plc and Mondi Limited at the annual general meeting in May 2017. He will work with Oswald in the interim. Thereafter, Mondi says, Hathorn will continue to work in an executive capacity until his retirement in February 2018.
"I do not view this announcement as a major positive or negative catalyst for Mondi or its shares," Justin Jordan, equity researcher at Jefferies International in London, said on Wednesday. "This is an evolution not a revolution. David has been phenomenal as leader of Mondi. Like any good actor, David is departing the stage with the audience still asking for more."
Hathorn had led Mondi’s international expansion, its 2007 demerger from Anglo American and consistent profit growth thereafter, Jordan said.
Oswald had been with the group for more than 20 years and this would help to ensure a smooth transition, he said.
"Mondi remains highly profitable, with a strong balance sheet giving it flexibility to expand globally," Jordan said.
Given that 85% of Mondi’s profit was generated in its European division, Oswald — who had been with Mondi since 1992 — was the obvious candidate to be next group CEO.
"It gives me great confidence in the future success of the business to be able to hand over to Peter, who has been alongside me for much of this journey," Hathorn said on Wednesday.
Mondi joint chairmen David Williams and Fred Phaswana said in a joint statement that Hathorn had contributed hugely to the growth and development of the company.
"He was instrumental in the group’s international expansion and the development of the high-quality asset base that forms the foundation of [Mondi] today," they said on Wednesday.
"We are delighted to have someone of Peter’s calibre and experience to succeed David as CEO. Peter is a proven leader with an intimate knowledge of the business, having been involved in the development of much of what comprises the group today," the chairmen said.
Since the demerger from Anglo American and its listing in 2007, the market capitalisation of Mondi had more than quadrupled, giving a compound annual return to shareholders of more than 18%.
"I am honoured to accept the appointment and look forward to working with the boards and the rest of our team in continuing the successful development of the business," Oswald said on Wednesday.
The group would retain its clear and consistent strategic focus, robust business model, world-class assets and rigorous and disciplined approach to capital allocation.
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