12th May 2016 06:21
LONDON (Alliance News) - Anglo-South African paper and packaging company Mondi PLC on Thursday said underlying operating profit grew in the first quarter as strong contributions from some divisions offset lower selling prices in others.
The FTSE 100-listed group said underlying operating profit for the quarter to the end of March was EUR269.0 million, 14% higher than the EUR236.0 million it made a year earlier.
Consumer Packaging, Uncoated Fine Paper and the group's South African arm all made strong contributions in the quarter, Mondi said, offsetting lower selling prices in some Packaging Paper segments and margin pressures on its Fibre Packaging business.
In addition, no significant planned maintenance shutdowns fell in the first quarter, after these had taken a EUR17.0 million bite out of operating profit a year earlier.
Sales volumes on a like-for-like basis were in line with the previous year, the company said, with lower volumes in industrial bags offset by good growth in the Consumer Packaging division.
Selling prices for Mondi's main paper grades were up, on average, year-on-year, with strong gains made in its Uncoated Fine Paper unit and more modest contributions from the South African arm and the containerboard business.
The group said it remains on track to meet its expectations for the full year.
By Sam Unsted; [email protected]; @SamUAtAlliance
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