Mondi Plc, a global leader in sustainable packaging and paper production, has released its Q1 2024 trading update. The company experienced improved market conditions, leading to higher sales volumes across its paper grades compared to the previous quarter. While average selling prices were lower, recent paper price increases are expected to positively impact the second quarter. The underlying EBITDA for the quarter was in line with expectations at 214 million, including a one-off 32 million loss due to the devaluation of the Egyptian pound.
In Corrugated Packaging, containerboard sales volumes were higher, and corrugated solutions delivered a stable performance. Flexible Packaging saw good sales volume growth offset by lower average selling prices. Uncoated Fine Paper benefited from price increases implemented in the quarter, but a lower forestry fair value gain impacted comparative performance.
During the quarter, Mondi paid a special dividend of 1.60 per share to shareholders, accompanied by a share consolidation. Andrew King, Chief Executive Officer, noted, "Market demand has continued to improve in the first quarter of the year, with stronger order books leading to higher sales volumes across our range of paper grades."
Mondi remains well-positioned to benefit from growing demand with its strong operational leverage, broad product offering, and organic growth investment projects, which are on track and on budget. The company's commitment to sustainability is evident in its strategy, with ambitious 2030 goals focused on circular-driven solutions and climate action.
For further details, a conference call will be held, and an audio playback will be available on the company's website. Mondi, with revenues of 7.3 billion and underlying EBITDA of 1.2 billion in 2023, has a premium listing on the London Stock Exchange and a secondary listing on the JSE Limited.
For more information, investors and analysts can contact Fiona Lawrence, Group Head of Investor Relations, and media inquiries can be directed to Chris Gurney, Group Head of Corporate Communication, and Richard Mountain at FTI Consulting.
Mondi's comprehensive approach to sustainability, strong financial performance, and strategic positioning in the market indicate a positive outlook for the company's future growth and development.