(Alliance News) - Mondi PLC said on Thursday its profit tumbled due to a double hit from subdued market demand in the third quarter of 2023, and lower average selling prices.
The Weybridge, England-based packaging firm reported a 42% plunge in underlying earnings before interest, taxes, depreciation and amortisation to EUR261 million for the third quarter that ended September 30, from EUR450 million in the same quarter last year.
Compared to the second quarter to June 30, underlying Ebitda dropped 21% from EUR329 million.
In the third quarter, the challenging market conditions continued as expected in light of the ongoing weak macroeconomic environment, Mondi said, noting that lower average selling prices were largely mitigated by falling input costs and tight fixed cost control.
In Corrugated Packaging, containerboard prices were stable, with the order books improving, while converting network delivered a resilient performance.
But flexible Packaging saw further price and volume declines in kraft paper, which is traditionally later in the cycle.
Uncoated Fine Paper pricing continued to decline in Europe on ongoing weakness in demand, it said.
Southern Africa markets, the packaging firm said, remained stable in the third quarter.
Despite challenges, Mondi said its EUR1.2 billion expansionary capital projects pipeline remains on track and within budget.
"We remain confident in the structural growth of the packaging markets we serve, underpinned by a growing demand for sustainable packaging solutions, and continue to invest in the future growth of Mondi," Mondi Chief Executive Andrew King said.
King expects weaker demand to continue through the final quarter of the year.
By Artwell Dlamini, Alliance News reporter
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Mondi (MNDI)