REG-Mondi Plc: Q3 2023 Trading Update

MondiAnnouncement

19/10/2023 07:15

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.

 



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