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11 Oct 2018 | 08:26

Mondi reports 30% earnings hike amid higher sales volumes and selling prices

International packaging and paper group Mondi reported underlying profit of €466m for the third quarter of 2018, an increase of 30% on the previous year and 4% on the second quarter.

The increase was boosted by higher like-for-like sales volumes for the quarter compared with the prior-year period due to good growth in the Fibre Packaging value chain, as well as significantly higher selling prices for the Group's key paper grades.

The company reported continued "manageable" upward pressure on its cost base from higher input costs, while planned mill maintenance during the quarter weighed on its underlying profit by around €30m, which is in line with last year.

"Based on prevailing market prices, we continue to estimate that the impact of maintenance shuts on underlying EBITDA for 2018 will be around €115m (2017: €95m)," the company said.

Looking forward, the company said it would continue to benefit from stable pricing in key fibre-based product segments. However, it added that the quarter would be impacted, as expected, by the large project-related shut and ramp-up at our Steti mill, restructuring initiatives in Industrial Bags and continued pressure on the cost base across the Group.

At 8:26am: (LON:MNDI) Mondi PLC share price was +25p at 1800.5p

Story provided by StockMarketWire.com
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