Higher prices help Mondi post 16% rise in Q1 earnings

Higher prices and acquisitions helped paper and packaging maker Mondi report a 16% rise in first quarter earnings.

Earnings before interest, tax, depreciation and amortisation (EBITDA) came in at €471m from €405m a year earlier and up 6% quarter on quarter.

Maintenance shutdowns hit EBITDA by €15m compared with €35m a year ago and the company estimated a full year cost of €150m, €50m higher than 2018.

Like-for-like sales volumes were marginally lower year on year and higher than the previous quarter. Selling prices for the group’s key paper grades were on average, higher than 2018 and stable quarter on quarter.

Wood, energy and chemical costs were all higher, with the exception of paper for recycling as a result of changes to Chinese import policies, Mondi said.

Cash fixed costs were marginally higher than the prior year, largely as a result of inflationary cost pressures, mitigated by cost containment initiatives, it added.