13th Oct 2016 06:44
LONDON (Alliance News) - Anglo-South African paper and packaging company Mondi PLC on Thursday said underlying operating profit was ahead in the third quarter, and it remains confident on its prospects.
The FTSE 100 constituent said underlying operating profit for the third quarter to the end of September was EUR227.0 million, up 3.0% year-on-year. This figure was down against the EUR259.0 million made in the second quarter, however, due to lower average selling prices and a lower fair value gain on the company's forestry assets.
Wood and chemical input costs in the quarter were stable, while energy costs were down, but the average cost per tonne of paper for recycling was up 8.0%.
Packaging Paper prices in the third quarter were broadly flat on the second, though down 7.0% year-on-year. Mondi, however, implemented a price increase in August, which served to partially offset the price erosion seen in the first half of 2016.
Fibre Packaging trading remained robust in the quarter, Mondi said, while its Consumer Packaging unit was boosted by the acquisitions of Kalenobel in Turkey and Uralplastic in Russia.
Mondi said the selling price increase it implemented in the third quarter should bring benefits in the fourth quarter and into 2017, while costs remain broadly stable. The company said it remains confident in its outlook.
By Sam Unsted; [email protected]; @SamUAtAlliance
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