The weak economic environment notwithstanding, bigwig packaging and paper group Mondi Ltd. has managed to boost its cash generation for the year ended December 2012, and has also paid out an 8 percent higher dividend.

Going by the `excellent' results posted by Mondi, the biggest manufacturer of office paper in Europe and South Africa, the year that ended December helped the company achieve strong cash generation from operations of _845 million.

Despite the fact that Mondi reported a 12 percent plunge - to 50.5 euro cents from 57.5 cents a year back - in its basic earnings, the company's directors recommended a final dividend of 19.1 euro cents per share; thereby increasing the total dividend by 8 percent to 28c per share for the year.

About Mondi's 2012 performance, CEO David Hathorn said that although the company's earnings in the first quarter were hit by lack of demand for its products as well as a lack of economic activity in general in Europe, the introduction of cost-changing strategies had helped the company witness a turnaround.

In an elaboration of his statement, Hathorn said: "Europe picked up when we got improved prices in the second quarter and then did better business in the third and fourth quarters."