Packaging firm Mondi reports 30 pct rise in Q3 underlying profit
JOHANNESBURG (Reuters) - Packaging and paper group Mondi, reported a 30 percent increase in third-quarter underlying core profit, benefiting from higher average selling prices in some of its businesses.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose to 466 million euros in the three months ended September, up from 359 million euros in the prior year, Mondi said in a statement on Thursday. Quarter on quarter growth was 4 percent.
"The Group delivered a strong performance in the third quarter, benefiting from higher average selling prices across Fibre Packaging and Uncoated Fine Paper, a very strong operational performance, good cost containment and contributions from recent acquisitions," it said.
The group, which is listed in London and Johannesburg, said planned mill maintenance closures during the quarter had an estimated impact on underlying EBITDA of around 30 million euros, in line with the impact seen a year earlier.
Based on prevailing market prices, it estimated that the impact of maintenance closures will be around 115 million euros for 2018.
"As expected, the (fourth) quarter will be impacted by the large project related shut and ramp-up at our Steti mill, restructuring initiatives in Industrial Bags and continued pressure on the cost base across the group," Mondi said.
(Reporting by Nqobile Dludla; editing by Jason Neely)
© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.