LSE- and JSE-listed paper and packaging company Mondi has reported higher sales volumes, good cost control and fewer planned maintenance shuts in the first quarter of this year, which was offset by lower average selling prices when compared to the fourth quarter of 2024.
Underlying earnings before interest, taxes, depreciation and amortisation (Ebitda) for the first quarter was €290-million, including a forestry fair value gain of €2-million, up from €261-million in the fourth quarter of 2024, which included a forestry fair value loss of €27-million.
In its Corrugated Packaging and Flexible Packaging divisions, stronger order books drove higher sales volumes across Mondi's range of paper grades compared with the fourth quarter of 2024. This was supported by a solid performance in the downstream converting operations.
Following selling price declines towards the end of 2024, average selling prices in the first quarter of this year were lower than the fourth quarter of 2024, the company said.
In the past few months, paper price increases have been implemented to largely recover the declines.
Further, in Uncoated Fine Paper, market conditions remained muted with lower average selling prices in the quarter when compared to the final quarter of 2024. Profitability was supported by strong cost control.
Mondi has made good progress with the completion and ramp-up of its capacity expansion projects. The new kraft paper machine at Steti, in Czech Republic, which commenced operations in December 2024, is showing excellent results in terms of paper quality and production volumes.
Optimisation of the wider kraft paper mill network is under way, it noted.
Additionally, the newly converted paper machine in Duino, in Italy, successfully started up in April.
Once fully operational, it will be capable of producing 420 000 t/y of high-quality recycled containerboard, thereby increasing Mondi's integration with its corrugated box converting plants, facilitating further optimisation of supply chains and improving security of supply for customers.
Further, Mondi has welcomed 2 200 new colleagues after completing the acquisition of Western Europe Packaging Assets of Schumacher Packaging in March. The team is now focused on the integration phase to drive synergies, ramp up sales and provide customers with an enhanced range of solutions.
“In the first quarter of the year, we have seen stronger order books driven by increased demand for our sustainable packaging products. This has supported recent price increases, which we expect to come through from the second quarter,” said Mondi CEO Andrew King.
"Towards the end of the first quarter, global trade tensions heightened macroeconomic uncertainty. While the direct impact of announced tariffs on our operations is limited, the company remained mindful of the potential second order impacts that could affect trade flows, consumer confidence and supply chains," he added.
“We remain fully focused on driving our culture of continuous improvement and competitiveness, ramping up our capacity expansion projects and integrating the newly acquired assets from Schumacher Packaging. These actions will enhance our packaging and paper platform enabling us to continue to deliver our high-quality range of sustainable packaging and paper products.” 