Mondi wraps up a strong first quarter

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Mondi wraps up a strong first quarter

Published Date: 2019-05-10 | Source: Stephen Gunnion | Author: Stephen Gunnion | Comments

Mondi wraps up a strong first quarter

The paper and packaging group said it benefitted from acquisitions, higher selling prices and a strong operational performance.

Mondi has reported a strong start to its 2019 financial year due to higher selling prices and a strong operational performance. Acquisitions and expansion projects also bolstered its first-quarter results.

In an operational update, the paper and packaging group said its Fibre Packaging business benefited from higher kraft paper selling prices, as did its Corrugated Packaging and Industrial Bags segments. Its Consumer Packaging unit did well following a restructured plant network for consumer goods packaging. Uncoated Fine Paper also continued to perform strongly, with higher average selling prices more than offsetting higher costs and modestly lower volumes.

Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) were 16% higher at €471 million year-on-year in the three months to end-March and were up 6% from the December quarter. Although like-for-like sales were down slightly, selling prices for its key paper grades were, on average, higher than a year earlier. It said currency movements had a neutral impact on its underlying EBITDA as the effects of a weaker Russian rouble and Turkish lira were offset by a stronger dollar and weaker rand relative to the euro.

Separately, the group announced that shareholders had approved the simplification of the existing Mondi Group structure from the dual listed company structure into a single holding company structure under Mondi Plc.

Mondi Limited's shares fell 1.6% to R306.04 yesterday while Mondi Plc's shares declined by 1.3% to R307.





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