Mondi said its underlying earnings dipped in the third quarter, as higher energy and wood costs and planned maintenance offset rising selling prices.
This isn’t great news for a company that has already seen operating margin collapse by two-thirds over three years.
The packaging and paper group reported quarterly underlying EBITDA of €196m, up from €167m in the previous quarter, but swings in the value of its forestry assets distorted that comparison.
Stripping those out, underlying earnings were lower, which the company attributed mainly to planned maintenance shutdowns and higher-than-expected input costs, particularly for energy and wood in Central and Eastern Europe.
The company said strong order books supported price rises that helped offset cost inflation, and that it had announced further price increases for several paper grades, with the benefit expected late this year and into 2027. Performance varied across its divisions, with packaging grades seeing positive pricing but fine paper facing weaker, seasonal demand.
Mondi said it was continuing to optimise its operations, including closing some converting plants and selling others, as it works to improve efficiency and competitiveness.
These actions may not be enough to convince some investors and shares were down around 5% shortly after the open on Thursday.