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Packaging and paper company, Mondi Group, says its CEO, Peter Oswald, will be stepping down in March, after less than three years at the helm.
Oswald, who ascended to the Plc group CEO position in May 2017, had been with the group since 1992, Mondi said on Friday.
Mondi's share price fell by over 2% on the JSE shortly after the announcement on Friday morning. The group, which has operations in 33 countries - including South Africa - and about 102 production sites scattered across Europe, North America and Africa, did not give reasons for Oswald’s departure.
Mondi plc chairperson, David Williams, said throughout his 28-year tenure at Mondi, Oswald - who also spent nine years as the chief executive of the Europe & International Division -drove growth in the company.
“His drive to grow the business and his focus on ensuring Mondi’s long-term sustainable future have been invaluable to Mondi. The Board thanks Peter for his contribution to the Group and wishes him all the best for the future,” said Williams.
Mondi said group CFO, Andrew King, will act as interim CEO from April until Oswald’s successor is appointed.
Oswald steps down as the company is going through a rough patch. In October, it warned that demand in the third quarter of 2019 remained “softer” across the markets it operates in and prices for certain paper grades had declined. As a result, its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) for the third quarter of 2019 had fallen by 18%.
But the company had performed satisfactorily in its interim results for 2019, with EBITDA up 5% on the and operating profit jumping 28%, thanks to higher average selling prices in the first half of the year.
