Dual-listed Mondi on Thursday posted a 6% year-on-year decrease in its underlying operating profit for the first quarter of the year, ended March 31, to €252-million, as inflationary cost pressures mount and as a result of significantly lower forestry fair value gain.
However, underlying operating profit was up 12% quarter-on-quarter, owing to higher sales volumes and prices.
Wood costs were higher than the comparable prior year period, while paper for recycling benchmark prices rose sharply, up 17% compared with the first quarter of 2016, and at similar levels to the fourth quarter of 2016.
Benchmark polyethylene prices were also higher, on the back of higher crude oil prices.
Energy costs increased owing to the weather conditions in Europe and higher energy input costs.
Meanwhile, the company pointed out that planned maintenance shuts were completed in packaging paper during the quarter, with an estimated impact on operating profit of €10-million.
“Based on prevailing market prices, we continue to estimate that the impact of planned maintenance shuts on operating profit for 2017 will be around €80-million, of which around €35-million will be incurred in the first half of the year,” the group stated.