Mondi earnings drop in third quarter

Mondi PLC on Thursday blamed production shutdowns and fair value loss for a sharp decline in underlying profitability for the third quarter of 2024.

Mondi earnings drop in third quarter

The Weybridge, England-based packaging firm reported a 36% slump in underlying earnings before interest, taxes, depreciation, and amortization to € 223 million for the third quarter of 2024 from € 351 million in the second quarter.

The company attributed this drop primarily to "more planned maintenance shuts" and a forestry fair value loss. This was in addition to softer seasonal demand and higher input costs.

Mondi said selling prices in corrugated and flexible packaging were higher than in the previous quarter due to the implementation of paper price increases earlier in the year.

After a price recovery at the start of the year, pulp and paper selling prices in uncoated fine paper declined in the third quarter to September 30.

CEO cites uncertain macroeconomic environment

Chief Executive Officer Andrew King said trading conditions remain muted against the backdrop of an uncertain macroeconomic environment. The group saw the benefits from the increase in prices earlier this year across its key paper grades.

King said fewer planned maintenance shuts will occur in the fourth quarter of 2024, and the normal seasonal pick-up in demand is expected.

"Overall, our organic growth investments are expected to deliver a meaningful EBITDA contribution from 2025," he said.

The Mondi chief executive said expansionary projects remain on track, noting that the group is progressing well towards completing the paper machine investments at Steti mill in Czech Republic and Duino mill in Italy.