Branded rolls of paper are seen at a Mondi production facility. The group reported stronger order books in its first quarter to end-March 2025 driven by increased demand for it sustainable packaging products.
Image: supplied
Sustainable packaging and paper group Mondi’s share price gained 2.6% on Thursday after it reported higher sales volumes, good cost control, and fewer planned maintenance shuts in the three months to the end of March.
The share price traded at R218.22 on the JSE in the afternoon, a price well down from R368.37 that it traded at a year before.
The group said in a first quarter to end-March 31 trading update that average selling prices were lower compared to the fourth quarter of 2024.
Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) for the first quarter was €290 million, including a forestry fair value gain of €2m (Q4 2024: €261m including a forestry fair value loss of €27m).
In Corrugated Packaging and Flexible Packaging, stronger order books drove higher sales volumes. Downstream converting operations posted a solid performance.
Following selling price declines towards the end of 2024, average selling prices in the first quarter were lower than in the fourth quarter of 2024. In the last few months, paper price increases had been implemented to largely recover the declines.
In Uncoated Fine Paper, market conditions remained muted with lower average selling prices. Profitability was supported by strong cost control. Progress was made with the completion and ramp-up of expansion projects.
The new kraft paper machine at Steti (Czech Republic), which commenced operations in December last year, “is showing excellent results in terms of paper quality and production volumes,” a statement said.
The converted paper machine in Duino (Italy) successfully started up in April. Once fully operational, it will be capable of producing 420 000 tons per annum of high-quality recycled containerboard.
The acquisition of the Western Europe assets of Schumacher Packaging was completed on March 31. Mondi welcomed 2 200 new colleagues, and the team was focused on the integration phase to drive synergies, ramp up sales, and provide an enhanced range of solutions to customers.
"In the first quarter of the year, we have seen stronger order books driven by increased demand. This has supported recent price increases, which we expect to come through from the second quarter,” said CEO Andrew King.
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