Mondi
plc
(Incorporated in England and
Wales)
(Registered
number:
6209386)
LEI: 213800LOZA69QFDC9N34
LSE share
code: MNDI
ISIN:
GB00B1CRLC47
JSE share
code: MNP
19 October 2023
Q3
2023 Trading Update
Mondi plc,
a global leader in the production of sustainable packaging and
paper, today provides an update on trading for the three months to
30 September 2023 (“third quarter” or
“Q3 2023”).
In the
third quarter of 2023 the challenging market conditions continued
as expected in light of the ongoing weak macro-economic
environment. Market
demand has remained soft with lower average selling prices largely
mitigated by lower input costs and tight fixed cost control. A
much-reduced forestry fair value gain resulted in a lower
underlying EBITDA of €261 million when compared to Q2
2023.
In
Corrugated
Packaging,
containerboard prices were stable with our order books
improving. Flexible
Packaging saw
further price and volume declines in kraft paper, which is
traditionally later cycle. Our converting network delivered a
resilient performance. Uncoated
Fine Paper pricing
continued to decline in Europe on
ongoing weakness in demand. Southern
Africa markets remain stable.
The
forestry fair value gain, accounted for within uncoated fine paper,
was €14 million in Q3 2023, significantly lower than Q2 2023 of €72
million.
Andrew King, Chief Executive
Officer,
said: “Demand
has remained subdued in the third quarter with stable pricing in
containerboard but continued price declines in kraft
paper. We
expect this trend to continue through the final quarter of the year
along with stabilising input costs and a greater impact from
maintenance and project-related shuts. However,
our low-cost asset base, broad product offering and fully
integrated business model provides resilience in this environment
and ensures we are well positioned to benefit when market
conditions improve.
“Our
€1.2 billion expansionary capital projects pipeline remains on
track and within budget.
We
remain confident in the structural growth of the packaging markets
we serve, underpinned by a growing demand for sustainable packaging
solutions, and continue to invest in the future growth of
Mondi.”
-END
–
Appendix
Quarterly
underlying EBITDA from continuing operations
€
million
|
Q1
|
Q2
|
Q3
|
Q4
|
2023
|
351
|
329
|
261
|
-
|
2022
|
464
|
478
|
450
|
456
|
2021
|
271
|
295
|
290
|
301
|
The
forestry fair value gain is included within underlying EBITDA and
accounted for within Uncoated Fine Paper. For the nine months ended
30 September 2023, the forestry fair
value gain was €100 million (FY2022: €169 million, FY2021: loss of
€7 million).
Conference
call dial-in details
A
conference call will be held this morning, Thursday 19 October, at
09:00 (BST) / 10:00 (SAST).
The link
to register for the conference call is:
https://register.vevent.com/register/BI3ceea1743b544451a32001cf41b6a255
Once you
have registered you will get a confirmation email containing a
personal pin code and a list of the country dial in
numbers.
A link to
the replay of the call will be published on our website shortly
after the live call.
Enquiries
Investors/analysts:
Fiona Lawrence
+44
742 587 8683
Group Head
of Investor Relations
Media:
Chris Gurney
Group Head
of Corporate Communication
+44
799 004 3764
Richard Mountain
FTI
Consulting +44
790 968 4466
Editor’s
notes
Mondi is a
global leader in packaging and paper, contributing to a better
world by making innovative solutions that are sustainable by
design.
Our
business is integrated across the value chain – from managing
forests and producing pulp, paper and films, to developing and
manufacturing sustainable consumer and industrial packaging
solutions using paper where possible, plastic when
useful.
Sustainability
is at the centre of our strategy, with our ambitious commitments to
2030 focused on circular driven solutions, created by empowered
people, taking action on climate.
In 2022,
Mondi had revenues of €8.9 billion and underlying EBITDA of €1.8
billion from continuing operations, and employed 22,000 people
worldwide.
Mondi has
a premium listing on the London Stock Exchange (MNDI), where the
Group is a FTSE100 constituent, and also has a secondary listing on
the JSE Limited (MNP).
mondigroup.com
Sponsor in
South Africa: Merrill Lynch South
Africa Proprietary Limited t/a BofA Securities.