REG-Mondi Plc: Q3 Trading Update

MondiAnnouncement

06/10/2025 07:02

Mondi plc

(Incorporated in England and Wales)

(Registered number: 6209386)

LEI: 213800LOZA69QFDC9N34

LSE share code: MNDI

JSE share code: MNP ISIN: GB00BMWC6P49

 

This announcement contains inside information

 

6 October 2025

 

Q3 Trading Update

 

Mondi plc ("Mondi") a global leader in sustainable packaging and paper, today
provides an update on trading for the three months to 30 September 2025
("third quarter" or "Q3 2025").

 

Key Points

 
* Underlying EBITDA in the third quarter of €223 million, including €20
million of forestry fair value gain
* Challenging trading environment continued through the quarter
* Ongoing initiatives to optimise Mondi's competitive advantage 
* Business unit reorganisation
* Focus on returns and cash generation
* Well positioned to benefit when market conditions improve
 

Q3 Trading Update

 

The trading environment in the third quarter remained challenging, resulting
in an underlying EBITDA of €223 million, including €20 million of forestry
fair value gain. Volumes were impacted by subdued demand and paper selling
prices declined during the quarter. To mitigate the impact of the softer
markets, we proactively extended certain scheduled annual maintenance shuts.

 

Underlying EBITDA was lower than the second quarter (`Q2 2025') in both our
Corrugated and Flexible Packaging businesses. This was as a result of lower
sales volumes and the impact of planned maintenance shuts in the upstream pulp
and paper businesses. In addition, selling prices declined during the period,
largely reversing the increases implemented during the first half of 2025. Our
packaging converting businesses delivered a stable performance compared to the
second quarter. Uncoated Fine Paper performance was significantly impacted by
lower sales volumes due to weak demand and intense competition, planned
maintenance shuts and declining selling prices for uncoated fine paper and
pulp.

 

Challenging trading conditions are expected to persist for the remainder of
this year as demand-side confidence remains fragile, key markets remain in
oversupply and current selling prices are lower than third quarter average
selling prices.

 

Ongoing initiatives to optimise Mondi's competitive advantage 

 

Mondi's resilience remains strongly supported by our cost competitive
production base, vertical integration strengths and balanced geographic,
end-use and product exposure. While we remain confident in the structural
drivers underpinning through-cycle growth in our packaging solutions, we are
equally cognisant of the impact of the current prolonged cyclical downturn on
near term performance. In response, we have intensified our focus on
operational efficiency, cost control and cash generation in order to maximise
our competitive advantage. These initiatives continue to mitigate the impact
of softer markets and are aimed at protecting value today while ensuring we
are well positioned to capture growth and deliver enhanced returns when
favourable market conditions return.

 

The integration of the recently acquired Schumacher business is progressing
well.  We remain confident in the opportunities arising from the broader
geographic reach, vertical integration and synergy benefits.  In the six
months since completion, we have focused on integrating the business while
driving the commercial strategy, and have identified an additional €10
million cost synergies, taking the total to €32 million, to be realised over
the three years from completion.

Business unit reorganisation

With effect from 1 October, the Group has been organised into two business
units - Corrugated Packaging and Flexible Packaging. We have combined Uncoated
Fine Paper with Corrugated Packaging to form an enlarged Corrugated Packaging
Business Unit. Flexible Packaging remains unchanged.

These changes will facilitate a more streamlined organisation supporting
faster decision making, cost take-out and delivery of operational synergies
across our pulp and paper mills, while retaining our customer focused value
chain orientation.  

Focus on returns and cash generation

After a period of investment, Mondi is reaching the end of its current
investment cycle with all major capacity expansion projects built on time, on
budget and operational. Our focus is now on achieving full productivity
ramp-up, executing our commercial strategy, driving cash generation and
delivering returns.

 

Current profitability from these projects is heavily influenced by prevailing
market conditions and, as such, it is now expected the net incremental
contribution to EBITDA in FY2025 will be around €30 million.  We remain
confident that our expansionary projects are cost competitive, deliver
significant integration benefits and, once fully optimised, will deliver
mid-teen returns on a through cycle basis. 

Good progress has been made with the feasibility study to build a new sack
kraft paper machine at our pulp mill in Hinton (Canada). While this project
remains strategically attractive, we have taken the decision to delay the
investment due to the current market environment. We retain full optionality
to invest and are well positioned to accelerate when favourable conditions
return.

Current capital expenditure remains focused on stay in business capital
expenditure and cost optimisation opportunities. 

Andrew King, CEO Mondi Group commented: -

"Trading conditions in the third quarter were challenging, with softer volumes
and declining prices across most pulp and paper grades.   

 

"Across the Group, we remain relentlessly focused on managing the
controllables. We have sharpened our emphasis on margin management, rigorous
cost optimisation and continuous improvement. These initiatives enable us to
navigate current headwinds, build a stronger, more efficient operating
platform and drive free cash flow. This will protect value today and deliver
enhanced returns when market conditions improve.

 

"Looking further ahead, we remain confident in the long-term sustainable
growth fundamentals of our packaging businesses. Our leading positions across
attractive packaging markets, supported by a well-invested, cost advantaged
and integrated asset base ensure Mondi is well placed to capture future growth
and deliver value for our shareholders."  

 

- END -

 

 € million                                               Q1   Q2   Q3    Q4    
 2025 Underlying EBITDA (including forestry fair value)  290  274  223   -     
 2025 Forestry fair value gain                           2    16   20    -     
 2024 Underlying EBITDA (including forestry fair value)  214  351  223   261   
 2024 Forestry fair value gain/(loss)                    15   34   (15)  (27)  

 

Enquiries

Investors/analysts:

Fiona Lawrence      +44 742 587 8683

Mondi Group: Head of Investor Relations

 

Media:

Kerry Cooper       +44 7881 455 806

Mondi Group: Group Communication Director

 

Richard Mountain      +44 790 968 4466

FTI Consulting

The person responsible for arranging the release of this announcement on
behalf of Mondi plc is Jenny Hampshire, Company Secretary.

Results call details

A call will be held today at 08:00 (BST), 9:00 (CET/SAST).

Event registration link:  
https://storm-virtual-uk.zoom.us/webinar/register/WN_GrMIFv3oSdaAs3o1Oti0hg

 

Once registered, you will receive a confirmation email from `Mondi Group
Events' with the webinar link and ID.

A replay will be available on our website within a couple hours after the end
of the live results presentation at: 

https://www.mondigroup.com/investors/results-reports-and-presentations/

For any queries, please e-mail ir@mondigroup.com.

Editor's notes

Mondi is a global leader in packaging and paper, contributing to a better
world by producing products that are sustainable by design. We employ 24,000
people in more than 30 countries and operate an integrated business with
expertise spanning the entire value chain, enabling us to offer our customers
a broad range of innovative solutions for consumer and industrial end-use
applications. 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 2024, Mondi had revenues of €7.4 billion and underlying EBITDA of €1.0
billion. Mondi is listed on the London Stock Exchange in the ESCC category
(MNDI), where the Group is a FTSE100 constituent. It 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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