Mondi Q1 sales volume growth offsets lower average selling prices

(Sharecast News) - Packaging and paper firm Mondi said on Thursday that higher sales volumes, good cost control and fewer planned maintenance shuts during Q125 had helped to offset lower average selling prices when compared to Q424. Mondi said underlying earnings had come to €290.0m, including a forestry fair value gain of €2.0m, with stronger order books driving higher sales volumes in its corrugated and flexible packaging units, supported by "a solid performance" in the downstream converting operations.

The FTSE 100-listed firm noted that while average selling prices in Q125 were lower than Q424 following selling price declines towards the end of FY24, paper price increases have been implemented to largely recover the declines over the last few months.

In its uncoated fine paper arm, Mondi said market conditions remained "muted" and also saw lower average selling prices in Q125 when compared to Q424.

Chief executive Andrew King said: "In the first quarter of the year we have seen stronger order books driven by increased demand for our sustainable packaging products. This has supported recent price increases which we expect to come through from the second quarter.

"Towards the end of the first quarter, global trade tensions heightened macroeconomic uncertainty. While the direct impact of announced tariffs on our operations is limited, we remain mindful of the potential second order impacts that could affect trade flows, consumer confidence and supply chains."

As of 0915 BST, Mondi shares were up 3.60% at 1,150.0p.

Reporting by Iain Gilbert at Sharecast.com