Mondi plc (LON:MNDI), a global leader in the production of sustainable packaging and paper, has provided an update on trading for the three months to 31 March 2024.
In the first quarter of 2024, market conditions continued to improve with stronger order books leading to higher sales volumes across our range of paper grades compared to the fourth quarter of 2023 (“Q4 2023”). This was supported by a solid performance in our downstream converting operations. Average selling prices were lower compared to Q4 2023 however recently announced paper price increases are starting to come through in the second quarter. Costs remained broadly stable when compared to Q4 2023. Underlying EBITDA for the quarter was in line with our expectations at €214 million (Q4 2023: €260 million), which includes a one-off €32 million loss incurred in the period from the devaluation of the Egyptian pound.
In Corrugated Packaging, containerboard sales volumes were higher compared to Q4 2023 and corrugated solutions delivered a stable performance. Flexible Packaging saw good sales volume growth which was largely offset by lower average selling prices. Uncoated Fine Paper benefited from price increases implemented in the quarter, however, a lower forestry fair value gain impacted comparative performance.
During the quarter, Mondi paid a €1.60 per share special dividend to shareholders, returning the net proceeds received from the sale of all the Group’s Russian assets. The special dividend was accompanied by a share consolidation whereby shareholders received 10 new ordinary shares for every 11 existing ordinary shares held.
Andrew King, Chief Executive Officer, said: “Market demand has continued to improve in the first quarter of the year, with stronger order books leading to higher sales volumes across our range of paper grades. While we entered the year with lower selling prices compared to the prior year, improvements in demand have supported our initiatives to increase selling prices across the business. We remain well positioned to benefit from this growing demand with our strong operational leverage, broad product offering and organic growth investment projects, which remain on track and on budget.”
