Mondi Q3 earnings rise amid higher prices, strong demand
By Michele Maatouk
Date: Thursday 07 Oct 2021
(Sharecast News) - Paper and packaging group Mondi reported a jump in third-quarter earnings on Thursday as it benefitted from higher prices and strong demand.
Underlying earnings before interest, tax, depreciation and amortisation rose 27% from the same period a year ago to €388m.
Mondi said demand for corrugated packaging remained strong across all end-uses. On the back of tight global markets, the company implemented price increases in the quarter across its portfolio of containerboard grades.
The corrugated solutions segment performed strongly, it said, growing volumes "significantly" year-on-year, and making good progress in passing on higher input paper costs.
The flexible packaging business delivered strong volume growth in consumer, building and construction, eCommerce and specialised applications, Mondi said. It implemented price increase across its range of kraft papers and paper bags on the back of strong order books.
The performance of the engineered materials arm was stable during the quarter, as expected, with good volume growth in functional papers and films driven by a recovery in industrial and specialised applications, and strong demand for sustainable packaging materials.
Sales volumes in the uncoated fine paper unit rose year-on-year, Mondi said, with average uncoated fine paper prices higher after price increases were implemented during the year.
Mondi said: "Demand remains strong and we are implementing price increases across the business that will support the recovery of ongoing inflationary pressures.
"While in the short term the fourth quarter will be impacted by recent input cost increases alongside planned maintenance and project-related shuts, the group remains well-placed to deliver sustainably into the future, supported by our leading offering of sustainable packaging solutions, integrated cost-advantaged asset base and culture of continuous improvement."
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