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Mondi revenues up 55% to €450 million as FTSE 100 packaging and paper group price increases offset inflationary pressures
- The FTSE 100 company headquartered in Weybridge said higher average selling prices and overall volume growth helped offset significant cost pressures
- Corrugated packaging, flexible packaging and uncoated fine paper were among the bestsellers
- Mondi shares rose 55 percent and traded at 1,383.50 pence around 11 a.m. Friday
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Mondi posted pre-tax and interest income of €450 million in the third quarter, up 55 percent from the same period last year after the group raised prices.
The FTSE 100 packaging and paper group, headquartered in Weybridge, said higher average selling prices and overall volume growth helped offset significant cost pressures.
Corrugated packaging, flexible packaging and uncoated fine paper were among the bestsellers during the quarter.
Packaging and paper group Mondi has revealed that pre-tax and interest income was €450 million in the third quarter, up 55 percent from the same time last year.
Mondi shares were up 55 percent, trading at 1.383.50p around 11 a.m. Friday.
Looking ahead, the company says it is “confident” that it will make a year of “good progress” despite geopolitical and macroeconomic uncertainties coupled with lingering inflationary pressures.
In the third quarter, it said it could mitigate the impact of significantly higher European gas and electricity costs, as most of the company’s pulp and paper mills generate the majority of their energy needs internally.
The company’s expansive €1 billion capital investment program included a €400 million investment in a new 210,000-tpa kraft paper machine at its flagship Steti plant in the Czech Republic and the purchase of a mill near Trieste in Italy.
Mondi’s Russian operations have also been classified as held for sale and the operations have been discontinued. In the third quarter of 2022, the Russian operations generated a profit after tax of €104 million (EBITDA of €129 million).
Commenting on this quarter’s results, Andrew King, CEO of Mondi, said: “Mondi performed strongly in the third quarter. My sincere thanks go to all my colleagues for their continued agility and commitment in challenging times.
“We continue to work with our customers and help lead the way towards a circular economy with our unique portfolio of innovative and sustainable packaging and paper solutions. We also remain focused on operational efficiency and cost control.
“Our ambitious expansive capital investment program is progressing well as we continue to invest in our cost-effective asset base to capture opportunities in our structurally growing packaging markets, improve our competitive position and deliver sustainably into the future.”
The Mondi Group is formed by Mondi South Africa, founded in 1967 and the acquisition of Frantschach and Neusiedler, which were founded in Austria in 1881 and 1793 respectively.
Today, the company employs approximately 21,000 people in 100 manufacturing sites in 30 countries, with major operations in Europe, North America and Africa.