Mondi, the FTSE 250 packaging and paper group, said higher selling prices offset rising input costs in the third quarter, with further price increases announced and expected to support performance into next year.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) came in at €196 million for the three months to September, up from €167 million in the second quarter.
The sequential improvement was partly flattered by the absence of a €43 million forestry fair value loss that had weighed on the second-quarter figure, with underlying EBITDA actually lower quarter on quarter once that effect is stripped out.
The decline reflected the impact of planned maintenance shutdowns across the business, though good order books supported positive price momentum across most divisions.
Input costs came in higher than expected, with energy-related costs continuing to rise through the quarter alongside anticipated increases in wood costs in central and eastern Europe.
In response, Mondi announced further price increases for a number of paper grades during the quarter, with the benefit expected to flow through towards the end of 2026 and into 2027.
Corrugated Packaging saw positive pricing momentum in containerboard, though competitive pressure and the lag in passing on paper price increases continued to weigh on margins in its Corrugated Solutions business.
Flexible Packaging was more resilient, with Kraft Paper and Paper Bags delivering positive pricing momentum, while Consumer Solutions delivered a good performance supported by resilient order books.
Uncoated Fine Paper faced seasonally weaker demand alongside higher input costs.
Forestry fair value was nil in the quarter, significantly affected by higher energy prices, and Mondi said it expects the same outcome in the fourth quarter if current energy prices prevail.
The company sold one solid board converting plant at the end of September and agreed the sale of a second, as part of efforts to optimise its plant network.
Chief executive Andrew King said the group remains "well positioned to deliver long-term value" supported by its integrated asset base and sustainable packaging portfolio.
