Mondi falls to almost a three-year low after earnings warning
Paper and packaging group Mondi’s share price fell to its lowest level in almost three years on Thursday morning, after it warned that softer paper demand and lower prices had hit its third-quarter revenue.
Earnings before interest, taxation, depreciation and amortisation (ebitda) had fallen 18% to €383m in the three months to end-September, the company said, adding that prices had fallen further in its fourth quarter.
At 10.30am, Mondi’s share price was down 3.59% at R276.34, a level last seen in January 2017.
Like-for-like sales volumes to end-September were, on average, marginally lower than the comparable period in the prior year, the company said, as a result of lower industrial bags and uncoated fine paper volumes.
This fall was partly offset by growth in corrugated packaging.
The statement read: “Lower average selling prices from the highs reached towards the end of 2018 and into early 2019, coupled with the anticipated lower forestry fair-value gain, more than offset the benefits of our ongoing profit improvement initiatives.”