Publications
Partners
Johannesburg - Papermaker Mondi [JSE:MND] on Friday posted a 35% rise in first-quarter underlying operating profit year-on-year as it benefits from recent acquisitions in its packaging business.
Mondi, also listed in London, said the underlying operating profit rose to €162m from €120m in the same period last year.
The significant increase over the comparable prior year period is a result of improved market conditions in the packaging paper and South African businesses‚ as well as the benefits from the acquisitions of Nordenia and the corrugated packaging plants in Germany and the Czech Republic completed towards the end of 2012‚ it said.
Sales volumes were‚ on average‚ above those achieved in the previous quarter‚ while average benchmark selling prices across all grades in the European businesses were largely unchanged‚ it said.
Selling price increases were realised in recycled containerboard during the March quarter and price increases for virgin and white- top containerboard have been announced for the second quarter of 2013.
Average input costs per unit of production in the quarter were similar to the previous quarter and that of the comparable prior year period.
Currency effects were mixed during the quarter with the group benefiting from the weaker South African rand‚ Polish zloty and Czech koruna while the stronger Swedish krona and Russian rouble impacted negatively on the cost base in those currencies.
The company said that the effects of expected capacity increases in recycled containerboard and uncoated fine paper‚ coupled with prevailing demand softness across the European businesses‚ remain a concern.
However‚ recent price increases in the packaging paper grades provide support and good progress is being made in integrating the group’s recent acquisitions.
Management remains confident of continuing to make progress‚ in line with its expectations.
