Mondi revenues soar 55% to €450m as FTSE 100 packaging and paper group’s price hikes offset inflationary pressure
- The FTSE 100 firm headquartered in Weybridge said that higher average selling prices and overall volume growth helped offset significant cost pressures
- Corrugated packaging, flexible Packaging and uncoated fine paper were among the best sellers
- Mondi’s shares were up 55 per cent trading at 1,383.50p around 11am Friday
Mondi has posted third quarter income before tax and interest of €450million, up 55 per cent compared to the same time last year, after the group hiked prices.
The FTSE 100 packaging and paper group, headquartered in Weybridge, said that higher average selling prices and overall volume growth helped offset significant cost pressures.
Corrugated packaging, flexible packaging and uncoated fine paper were among the best sellers during the quarter.
Packaging and paper group Mondi has revealed that its income before tax and interest in the third quarter was €450 million, up 55 per cent compared to the same time last year
Mondi shares were up 55 per cent trading at 1,383.50p around 11am Friday.
Looking ahead, the company says it’s ‘confident’ that it will deliver a year of ‘good progress’ despite geopolitical and macroeconomic uncertainties combined with continued inflationary pressures.
In the third quarter it said it was able to 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 €1billion expansionary capital investment programme included an investment in a new 210,000 tonne per annum kraft paper machine at its flagship Steti mill in the Czech Republic for €400million and the acquisition of a mill near Trieste in Italy.
Mondi’s Russian operations have also been classified as held for sale and operations have been discontinued. In the third quarter of 2022, the Russian operations generated profit after tax of €104 million (EBITDA of €129 million).
Commenting on this quarter’s results Mondi CEO Andrew King said: ‘Mondi delivered strongly in the third quarter. My sincere thanks go to all of my colleagues for their ongoing agility and commitment in challenging times.
‘We continue to partner with our customers, helping to 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 expansionary capital investment programme is progressing well, as we continue to invest in our cost advantaged asset base to capture opportunities in our structurally growing packaging markets, enhance our competitiveness and deliver sustainably into the future.’
The Mondi Group is formed by Mondi South Africa, which was founded in 1967 and the acquisition of Frantschach and Neusiedler, which were founded in Austria in 1881 and 1793 respectively.
Today the company employs around 21,000 people at 100 production sites across 30 countries, with key operations located in Europe, North America and Africa.