Mondi, a leading paper-and-packaging company, has announced that its underlying EBITDA for the third quarter has declined. This decrease was primarily driven by a reduced forestry fair value gain. The company also expects subdued demand and price declines in heavy-duty kraft paper to continue through the fourth quarter.
Challenging Market Conditions
Mondi has stated that challenging market conditions persist, as anticipated, due to the weak macro-economic environment. Although the company experienced lower average selling prices, this was partly offset by lower input costs and effective fixed-cost control.
Decrease in Earnings
According to Mondi, underlying earnings before interest, tax, depreciation, and amortization (EBITDA) for the third quarter amounted to €261 million, compared to €450 million during the same period last year and €329 million in the second quarter. This figure is adjusted to exclude exceptional and one-off items.
Packaging and Paper Markets
Mondi reported stable prices for container-board in corrugated packaging, with improved order books. However, flexible packaging experienced further declines in both price and volume for kraft paper. Uncoated fine paper prices also continued to decline in Europe due to weak demand.
Forestry Fair Value Gain
The forestry fair value gain, which is accounted for within uncoated fine paper, totaled €14 million for the third quarter. This is a decrease from the €72 million reported in the second quarter.