Advertise with fastmoving.co.za
 
 

Mondi says it benefited from higher average selling prices across fibre packaging and uncoated fine paper.
Mondi says it benefited from higher average selling prices across fibre packaging and uncoated fine paper.

Mondi forecasts strong third quarter but warns of higher costs

FMCG SUPPLIER NEWS

By Andries Mahlangu - Oct 11th, 11:11

Packaging and paper group Mondi said it had a strong performance in the three months to September, but flagged higher costs, which it said were manageable. 

Underlying earnings before interest, tax, depreciation and amortisation (ebitda) was up 30% to €466m in the third quarter, from the matching period a year ago. Ebitda rose a modest 4% quarter on quarter.

Mondi said it benefited from higher average selling prices across fibre packaging and uncoated fine paper, a strong operational performance, good cost containment and contributions from recent acquisitions.

Like-for-like sales volumes for the review quarter were up from the year-ago period due to good growth in the fibre packaging value chain, according to the trading statement.

"We continue to see manageable upward pressure on our cost base, with input costs up on the comparable prior year period and more moderately up when compared to the second quarter," the statement read.

The company said planned mill maintenance shuts during the quarter had an estimated effect on underlying ebitda of about €30m, the same as in 2017.

For the full 2018 financial year, the effect of maintenance shuts on underlying ebitda is estimated at €115m, from €95m a year before.

Finance charges were marginally up on the second quarter, as a result of higher average net debt, primarily due to significant cash outflows during the first half of 2018 relating to the completion of acquisitions (€415m) and the payment of a special dividend (€484m).

Business Live 

Read more about: paper | packaging | mondi | industries

Related News

Pernod Ricard sales up 10% on demand from China and India
18/10/2018 - 14:09
Spirits group Pernod Ricard posted a stronger-than-expected 10.4% rise in first-quarter underlying sales, helped by higher demand in China and India, and despite slower growth in its main market in the US.

Pernod Ricard subsidiary plans 150m euro investment in Ireland
17/10/2018 - 10:43
Pernod Ricard-owned Irish Distillers will invest over €150 million at its sites in Cork and Dublin to meet a continued rise in demand for Irish whiskey.

Mondelēz aims to make all of its packaging recyclable by 2025
11/10/2018 - 08:14
Mondelēz International has announced that it will make all of its packaging recyclable by 2025, as the company aims to reduce waste levels and create a circular economy for packaging.

Nestlé Indonesia reduces Milo sugar content by 25%
05/10/2018 - 10:48
Nestlé Indonesia has reformulated it's Milo malt chocolate beverage and reduced its sugar content by 25%.

Sugar content in UK yoghurts “well above” recommended levels
02/10/2018 - 08:33
The sugar content of the majority of yoghurts sold in the UK is “well above” recommended sugar levels, according to research conducted by online journal BMJ Open.