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

(Adds detail, dividend)

JOHANNESBURG, Feb 24 (Reuters) - South African paper maker Mondi (LSE: MNDI.L - news) 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 secondary listing in London, said underlying operating profit for the year to the end of December reached 767 million euros ($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 Graphic Packaging International, a subsidiary of Graphic Packaging Holding, in June to increase its sales of magazine paper and newsprint and 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)