4th May 2023 07:49
(Alliance News) - Mondi PLC said on Thursday its broader financial performance in the first quarter was marred by lower average selling prices and softer demand.
The Weybridge, England-based paper and packaging firm said earnings before interest, taxes, depreciation and amortisation declined by 23% to EUR351 million in the first quarter from EUR456 million in the fourth quarter.
Corrugated Packaging saw softer demand, driven in part by destocking, and lower prices compared to the fourth quarter.
Flexible Packaging delivered a stable performance compared to the fourth quarter, with weaker industry demand and modestly lower prices being offset by falling input costs.
Uncoated Fine Paper demand in Europe was lower compared to the fourth quarter, with prices declining towards the end of the quarter. In Southern Africa, demand and pricing were stable.
But Ebitda rose by 30% from EUR271 million in the same quarter last year.
Mondi Chief Executive Andrew King said the group had seen a stable performance in the first quarter compared to the final quarter of last year, with good pricing resilience from Flexible Packaging.
So far in the second quarter, demand remains subdued with lower average selling prices and further input cost reduction across the business, King said.
The paper and packaging said the first quarter was characterised by lower average selling prices, softer demand driven in part by destocking, and lower input costs from the highs seen in second half.
Mondi said it continued to work with Augment Investments Lid regarding its proposed acquisition of Syktyvkar, and the Gotek Group related to its proposed acquisition of the three Russian packaging converting plants.
Both parties seek approval from the relevant Russian authorities.
The underlying Ebitda from its Russian operations in the first quarter was EUR123 million.
By Artwell Dlamini, Alliance News reporter
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