Advertise with fastmoving.co.za
 
 

Mondi is enjoying "a strong pricing environment in a number of our key product segments, supported by good demand growth".
Mondi is enjoying "a strong pricing environment in a number of our key product segments, supported by good demand growth".

Mondi benefits from strong demand and pricing power

FMCG SUPPLIER NEWS

By Robert Laing - May 16th 2018, 11:07

Paper maker Mondi is enjoying "a strong pricing environment in a number of our key product segments, supported by good demand growth", it said in a trading update. 

Confusingly, there are two Mondi shares on the JSE, dating back to archaic rules when it dual-listed in London. Its plc shares, with stock ticker MNP, rose as much as 1.8% to R346.47 while its Limited shares, MND, rose 1.7% to R345.06 following the trading update.

Mondi is scheduled to release its interim results for six months to end-June on August 3.

Wednesday’s trading update did not provide earnings guidance but said its underlying operating profit for the three months to end-March grew 15% to €295m from the matching period in 2017.

Production of uncoated fine paper fell while it maintained its Richards Bay mill. But it offset this by producing more packaging paper.

"Based on prevailing market prices, we estimate that the impact of maintenance shuts on operating profit for 2018 will be around €115m from €95m in 2017, slightly above our previous estimate, of which around half will be incurred in the first half of the year," the trading update said.

Mondi said that while it suffered from higher prices for wood, chemicals and energy, it benefited from falling recycled paper prices.

It suffered from a stronger rand during the March quarter, while benefiting from the euro strengthening against the dollar and Russian rouble.

© BusinessLIVE MMXVIII 

Read more about: trading update | production | paper | mondi

Related News

Manufacturing production shrinks for second month in July
11/09/2019 - 13:01
Manufacturing production recorded its second consecutive contraction in July, in line with analysts’ expectations.

Survivor crowned 2019 ABSA Top Ten Pinotage
15/08/2019 - 11:25
Survivor, the unbridled Swartland wine range, has been recognised as one of South Africa’s top Pinotage producers making the cut in the prestigious 2019 ABSA Top Ten Competition.

We need to rethink our food system to tackle climate change
15/08/2019 - 09:19
The way we produce, consume and discard food is no longer sustainable.

Nestlé invests $100m to expand factories in Indonesia
02/08/2019 - 09:11
Nestlé has announced that it will invest $100 million to expand three factories in Indonesia, as the company aims to increase its current production capacity in the country by 25%.

Ethiopa coffee, oilseeds export revenues hit $1.2bn
30/07/2019 - 09:07
The Ethiopian government said the country made more than $1.2 billion in revenue from the exports of coffee and oilseeds during the just-concluded Ethiopian fiscal year that ended on July 7.