Global paper and packaging company, Mondi, said its Earnings before Interest and tax (EBITDA), was relatively lower in the third quarter, ending 30 September 2024.
Earnings were at €223 million, compared to Quarter 2’s €351 million.
Mondi attributed the decrease to 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.
However, sales of Corrugated Packaging and Flexible Packaging increased in Q3, 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 of Mondi, 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.”
King also said 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.”