Paper and packaging company Mondi says its underlying earnings before interest, taxes, depreciation and amortisation (Ebitda) of €351-million for the first quarter of this year were broadly flat when compared with its Ebitda for the fourth quarter of 2022, after excluding a noncash forestry fair value gain.

“The quarter was characterised by lower average selling prices; softer demand, driven in part by destocking; and lower input costs from the highs seen in the second half of 2022. While wood prices remained high in the first quarter of this year, they have now started to reduce,” the company notes in a trading update.

The company's Corrugated Packaging division saw softer demand, driven in part by destocking, and lower prices compared with the fourth quarter of 2022.

Its Flexible Packaging division delivered a stable performance compared with the fourth quarter of 2022, with weaker industry demand and modestly lower prices offset by lower input costs.

Additionally, Uncoated Fine Paper demand in Europe was lower compared with the fourth quarter of 2022, with prices declining towards the end of the quarter. In Southern Africa, demand and pricing were stable, Mondi says.

“We have seen a stable performance in the first quarter of 2023 compared to the final quarter of last year, with good pricing resilience from Flexible Packaging. So far in the second quarter, demand remains subdued with lower average selling prices and further input cost reduction across the business,” says Mondi CEO Andrew King.

“We continue to invest in the future growth of Mondi and we are making good progress in executing on our pipeline of expansionary capital projects. We have a compelling product portfolio and a resilient business model, which positions us well to deliver attractive returns and sustainable value accretive growth.”

Meanwhile, underlying Ebitda from Mondi's Russian operations in the first quarter of 2023 was €123-million.

“We continue to work with Augment Investments in respect of its proposed acquisition of Syktyvkar, and the Gotek Group in respect of its proposed acquisition of the three Russian packaging converting plants, as both parties seek approval from the relevant Russian authorities,” it points out.