UK – Paper and packaging company, Mondi has reported underlying earnings before interest, tax, depreciation and amortization (EBITDA) of €450m (US$438.4m), excluding its Russian operations, for the third quarter (Q3) of fiscal 2022 (FY22).

The figure is up by 55% compared with €290 million (US$284.04 million) in the same period of the prior fiscal year (FY21).

Mondi said that higher average selling prices and overall volume growth more than counterbalanced the ‘significant’ cost pressures.

The company’s corrugated packaging unit also benefitted from higher average selling prices against FY21 while its flexible packaging showed ‘resilient demand’ during the quarter.

In line with its €1 billion (US$979.45 million) expansionary capital investment program, Mondi recently approved a €400 million (US$391.78 million) investment in a kraft paper machine at its flagship mill in Štětí, Czech Republic.

The company’s Russian operations were presented as discontinued operations and generated a profit after tax of €104 million (US$101.86 million) and EBITDA of €129 million (US$126.35 million) in Q3.

Mondi CEO Andrew King said: “Mondi delivered strongly in the third quarter. My sincere thanks go to all of my colleagues for their ongoing agility and commitment in challenging times.

“We continue to partner with our customers, helping to lead the way towards a circular economy with our unique portfolio of innovative and sustainable packaging and paper solutions. We also remain focused on operational efficiency and cost control.”

King added: “Our ambitious expansionary capital investment program is progressing well, as we continue to invest in our cost-advantaged asset base to capture opportunities in our structurally growing packaging markets, enhance our competitiveness and deliver sustainably into the future.”

In May this year, Mondi decided to sell its assets in Russia in response to the geopolitical conflict in Ukraine.

The company agreed to divest its Joint Stock Company Mondi Syktyvkar facility and two affiliated entities to Augment Investments for RUR95 billion (US$1.5 billion).

In August, Mondi agreed to acquire the Duino mill near Trieste, Italy. It plans to convert the existing lightweight coated mechanical paper machine into a recycled containerboard machine, with an annual capacity of around 420,000 tonnes.

The total acquisition and capital investment costs are estimated at around  €240 million (US$235.07 million). The company said it continued to actively consider further investment opportunities.

Mondi warned that significant political and economic uncertainties remain, expecting inflationary pressures on its cost base to continue in the fourth quarter.

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