7th Oct 2021 07:56
(Alliance News) - Mondi PLC on Thursday said its performance improved in the third quarter of 2021 amid high demand for its products.
The Addlestone, England-based packaging and paper company said underlying earnings before interest, tax, depreciation and amortization for the third quarter of 2021 were EUR388 million, up 27% compared to the prior year's EUR306 million.
"Mondi delivered a strong performance in the third quarter with higher average prices across the business and strong volume growth year-on-year, against a backdrop of sharply higher input costs," said Chief Executive Andrew King.
"Our growth is underpinned by our leading packaging portfolio and we continue to develop innovative and sustainable packaging solutions to help our customers achieve their environmental goals," added King.
By division, Mondi said demand for Corrugated Packaging continued to be strong across all end-uses. Corrugated Solutions also performed strongly, growing volumes year-on-year, while making progress in passing on higher input paper costs.
The Flexible Packaging unit, meanwhile, delivered strong volume growth in consumer, building and construction, e-commerce and specialised applications. The business made progress in passing on higher plastic resin costs.
Engineered Materials' performance in the third quarter of 2021 was "stable", Mondi said, with good volume growth in functional papers and films driven by a recovery in industrial and specialised applications, and strong demand for sustainable packaging materials.
Uncoated Fine Paper sales volumes increased year-on-year. Average uncoated fine paper prices were higher both year-on-year and sequentially, following price increases implemented during the year, Mondi said.
Looking ahead, the company said demand remains strong and it is implementing price increases across the business that will support the recovery of ongoing inflationary pressures.
In the short term, Mondi said it expects the fourth quarter to be hurt by recent input cost increases alongside planned maintenance and project-related shuts. However, the company remains well-placed to deliver sustainably into the future, it said, supported by its offering of sustainable packaging solutions and integrated cost-advantaged asset base.
"Our major capital investment projects are progressing well. With these investments we capture opportunities in our growing packaging markets, strengthen our cost competitiveness and deliver sustainability benefits," noted King.
"We also have expansionary projects underway at a number of our converting operations to grow with our customers, enhance our product and service offering, and improve efficiencies and converting costs," added King.
By Evelina Grecenko; [email protected]
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