Mondi cites weak prices, rising costs for first-quarter profit slump

(Alliance News) - Mondi PLC on Friday blamed lower prices and mounting costs stemming from the Middle East conflict for a sharp decline in profitability in the first quarter of 2026.

The Weybridge, England-based packaging firm reported that underlying earnings before interest, taxes, depreciation and amortisation, including forestry fair value, fell 27% to EUR212 million for the first quarter that ended March 31, from EUR290 million a year earlier.

Ebitda is a key measure of underlying profitability.

Describing first-quarter market conditions as challenging, Mondi noted that lower average selling prices and higher energy-related input costs towards the end of the first quarter offset stronger sales volumes.

"Against a backdrop of challenging market conditions, sales volumes increased, although lower selling prices and latterly, cost pressures linked to escalating geopolitical tensions, weighed on underlying Ebitda," Mondi Chief Executive Officer Andrew King said.

"These pressures persist into the second quarter and we are taking pricing actions to mitigate their impact," King added.

Despite the uncertain outlook, Mondi said it continues to focus on what it can control, driving "operational excellence, rigorous cost and margin discipline".

"These actions underpin our confidence in our ability to navigate the current headwinds and continue to deliver our high-quality range of sustainable packaging and paper products for our customers," Mondi's King said.

Mondi shares were last quoted at 834.20 pence in London and ZAR186.12 in Johannesburg.

By Artwell Dlamini, Alliance News senior reporter South Africa

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