UPDATE 1-S.Africa's Mondi FY profit up 10 pct on packaging paper sales

(Corrects Feb. 24 story to clarify Mondi (LSE: MNDI.L - news) 's London listing and reference to Graphic Packaging in para 5)

JOHANNESBURG, Feb 24 (Reuters) - South African paper maker Mondi reported a 10 percent rise in full-year underlying profit on Tuesday on rising packaging paper sales and lower costs, sending its shares to a record high.

Mondi, which has a listing on the London Stock Exchange (Other OTC: LDNXF - news) , said underlying operating profit for the year to the end of December reached 767 million euro ($868.93 million) from 699 million euros a year earlier.

Its shares rose 2 percent to 232.50 rand, reaching its highest level ever since the company listed in 2007.

Mondi said packaging paper, including kraft paper - a type of paper often used in packaging - rose 11 percent due to lower costs and volume growth from an acquisition.

Mondi bought the U.S. bags and kraft paper business of Graphic Packaging International in June to grow its presence in the world's largest economy.

The company declared a final dividend of 28.77 euro cents per share, bringing the total for the year to 42 cents which was an increase of 17 percent on the year prior.

($1 = 0.8827 euros) (Reporting by Zandi Shabalala; Editing by James Macharia)