Mondi, a global leader in the production of sustainable packaging and paper, today provides an update on trading for the three months to 30 September 2024 (“third quarter” or “Q3 2024”).
Underlying EBITDA for the quarter was, as expected, lower than the previous quarter, at €223 million (Q2 2024: €351 million). This was primarily due to more planned maintenance shuts and a forestry fair value loss, which together resulted in a difference between the third quarter and second quarter of approximately €90 million. This was in addition to softer seasonal demand and higher input costs.
Selling prices in Corrugated Packaging and Flexible Packaging were higher when compared to the previous quarter due to the implementation of paper price increases earlier in the year. After a recovery in pricing at the start of the year, pulp and paper selling prices in Uncoated Fine Paper declined in the quarter.
Andrew King, Chief Executive Officer, said: “While we are seeing the benefits from the increase in prices earlier this year across our key paper grades, trading conditions remain muted against the backdrop of an uncertain macroeconomic environment. In the fourth quarter there will be fewer planned maintenance shuts, and we expect the normal seasonal pick-up in demand.
“Our expansionary projects remain on track. We are making good progress towards completing the paper machine investments at Štětí and Duino, both expected to start-up as planned. Overall, our organic growth investments are expected to deliver a meaningful EBITDA contribution from 2025. Together with the recently announced acquisition of the Western European assets of Schumacher Packaging, the additional capacity will ensure Mondi is well positioned to capitalise on the structural growth in sustainable packaging.”