South African packaging and paper company Mondi for first quarter 2017 report that underlying operating profit for the quarter was down 6 percent due to lower selling prices and inflationary cost pressures.
The company’s Underlying operating profit fell to EUR252 million approximately USD274 million in the three months through March from EUR269 million a year ago.The figure was up 12 percent on the fourth quarter last year due to higher sales volumes and prices.
“Strong sales volume growth was more than offset by a significantly lower forestry fair value gain, inflationary cost pressures and lower average selling prices,” the company said.
The packaging paper division was impacted by lower selling prices for container board, while significantly lower gains on the value of its forestry assets, lower average export selling prices for hardwood pulp and white top kraftliner products, and a stronger rand impacted the South Africa division.
“As previously advised, we are experiencing some inflationary cost pressures across the Group and the forestry fair value gain is expected to be lower than in 2016,” the company said.
Company Information
Mondi plc is an international packaging and paper group employing over 24,400 people with 102 operations across more than 30 countries, predominantly in central Europe, Russia and South Africa. It is fully integrated across the packaging and paper value chain – from the growing of wood and the manufacture of pulp and paper (packaging paper and uncoated fine paper), to the conversion of packaging papers into corrugated packaging, industrial bags, extrusion coatings and release liner. It has listings on the Johannesburg Stock Exchange and the London Stock Exchange and is a constituent of the FTSE 100 Index.
