15th Oct 2026 08:40
(Alliance News) - Mondi PLC on Thursday reported robust profitability in the third quarter of this year, despite input costs rising faster than previously projected.
The Weybridge, England-based packaging firm said underlying earnings before interest, tax, depreciation and amortisation was EUR196 million in the three months that ended September 30, up 17% from EUR167 million a year before. Ebitda is a key measure of underlying profitability.
Mondi shares were down 9.7% to 736.40 pence each in London on Thursday morning and down 9.5% to ZAR161.87 in Johannesburg.
Describing its performance as "resilient", Mondi said input costs were higher than expected as energy-related costs continued to increase through the third quarter, in addition to the anticipated increase in wood costs in Central and Eastern Europe.
In response, Mondi said it announced further price hikes for a number of paper grades during the quarter, with the benefit expected towards the end of this year and into 2027.
Good order books supported positive price momentum in the July-September quarter, Mondi said, with higher average selling prices offsetting input cost inflation.
Corrugated packaging saw positive price momentum in containerboard, offsetting higher input costs, while competitive pressure and the lag in passing on paper price increases continued to affect corrugated solutions margins.
Uncoated fine paper experienced seasonally weaker demand and higher input costs, while flexible packaging, kraft paper and paper bags delivered positive price momentum, offsetting higher input costs, Mondi said.
Consumer solutions delivered a "good" performance, supported by resilient order books and price actions, the company said.
"We continued to make progress on operational excellence, cost optimisation and improving the efficiency of our plant network to enhance competitiveness," Mondi Chief Executive Officer Andrew King said.
As the group enters the fourth quarter, King expects higher packaging paper prices to support performance, notwithstanding ongoing input cost pressures.
By Artwell Dlamini, Alliance News senior reporter South Africa
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