Mondi (LSE: MNDI) reported an 18% year-on-year drop in underlying Q1 earnings to €214 million, dented by sluggish selling prices and a one-off €32 million loss from the devaluation of the Egyptian pound. However, the result was in line with expectations.
The FTSE 100 firm noted improving market conditions led to higher sales volumes across its paper grades versus Q4. Its downstream converting operations also delivered a “solid” performance. However, average selling prices in Q1 remained lower compared to Q4, though recently announced paper price hikes are taking effect in Q2.
In its Corrugated Packaging unit, containerboard sales volumes increased quarter-on-quarter. The Flexible Packaging segment saw good volume growth offset by lower prices, while Uncoated Fine Paper benefited from Q1 price increases implemented.
Costs remained broadly flat sequentially for the period. Mondi’s shares slipped over 1% in early trading Friday, extending year-to-date losses to 9%.
During Q1, Mondi paid a £1.60 per share special dividend, returning proceeds from the sale of its Russian assets to shareholders.
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