(Reuters) – British packaging company Mondi said on Thursday trading conditions remained muted in the third quarter, after it reported a lower core profit compared with the previous three-month period, partly hurt by more planned maintenance shutdowns.
The paper and packaging sector has witnessed increasing consolidation in recent times, as companies gradually recover from softer demand and weak pricing due to destocking by customers. But broader economic challenges worldwide slackened the pace of recovery.
“While we are seeing the benefits from the increase in prices earlier this year across our key paper grades, trading conditions remain muted against the backdrop of an uncertain macroeconomic environment,” CEO Andrew King said in a statement.
The FTSE 100 company, which has over 100 production sites in more than 30 countries, said selling prices of corrugated and flexible packaging edged up versus the previous quarter, while pulp and paper selling prices in uncoated fine paper declined in the period on a quarter-to-quarter basis.
Mondi, which has key operations in Europe, North America and Africa, posted an underlying core profit of 223 million euros ($242 million) for the three months ended Sept. 30, down about 36% from the second-quarter period.
($1 = 0.9215 euros)
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Sumana Nandy)
