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Mondi PLC said on Friday market conditions continued to improve in the first quarter of 2024, however, selling prices were sluggish and underlying profit declined, though in line with its expectations. The Weybridge, Surrey-based packaging and paper company said its ‘stronger’ order books had led to higher sales volumes across its range of paper grades for the first quarter that ended March 31, compared to the fourth quarter to December 31. This, it said, was supported by a ‘solid’ performance in its downstream converting operations. But Mondi said average selling prices in the first three months were lower compared to the fourth quarter. However, the company said recently announced paper price increases were starting to come through in the second quarter. Costs remained broadly stable on a quarterly basis. Underlying earnings before interest, taxes, depreciation and amortisation for the first quarter was in line with the group’s expectations at €214 million, down 18% from €260 million in the previous quarter. This underlying Ebitda includes a one-off €32 million loss incurred from the devaluation of the Egyptian pound. In Corrugated Packaging, containerboard sales volumes were higher compared to fourth quarter. Flexible Packaging saw good sales volume growth, which was largely offset by lower average selling prices. Uncoated Fine Paper benefited from price increases implemented during the first quarter. But a lower forestry fair value gain impacted comparative performance. During the first quarter, Mondi paid a €1.60 per share special dividend to shareholders, returning the net proceeds received from the sale of all its Russian assets. Mondi Chief Executive Officer Andrew King said the group remained well positioned to benefit from growing market demand. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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