Packaging and paper manufacturer Mondi reports a declining market environment for the third quarter of 2025 with lower sales volumes and falling sales prices.
According to Mondi, the quarter was characterised by weak demand, strong competition and scheduled maintenance shutdowns in the upstream production areas.
Adjusted EBITDA in the corrugated board packaging and flexible packaging business was below the level of the second quarter, while the converting business was more stable. The uncoated fine paper business was significantly weaker, burdened by lower production volumes, maintenance work and falling prices for paper and pulp. The company expects conditions to remain difficult for the rest of the year, as important markets remain oversupplied and current sales prices are below the average for the third quarter.
Reorganisation into two business units
Mondi has been divided into two business units since 1 October: Corrugated Packaging and Flexible Packaging. In future, the Uncoated Fine Paper segment will be merged with the Corrugated Packaging division. The aim is to make decisions more quickly, reduce costs and utilise operational synergies across the pulp and paper plants - while maintaining the focus along the value chain.
Integration of Schumacher, investment focus and postponement of a project
The integration of the recently acquired Schumacher business The cost synergies identified have been increased by 10 million euros to a total of 32 million euros within three years.
Following the completion of the major capacity expansions, Mondi says it is now focussing on ramping up the plants, generating cash and focusing more strongly on returns. The additional EBITDA contribution from expansion projects is now estimated at around 30 million euros for 2025.
The planned new sack kraft paper machine at the Hinton plant (Canada) remains strategically attractive, but will be postponed for the time being due to the current market situation; Mondi is still keeping the investment option open.
Source: Mondi Group
