8th October 2015
As Mondi reports third quarter results, Ian Forrest, investment research analyst at broker group The Share Centre, explains what they could mean for investors…
Paper and packaging group Mondi provided a reassuring third quarter trading update to the market this morning. Underlying operating profits rose 27% to €221m, with good performances from all the main business units.
Like-for-like sales volumes rose, key input costs remained stable, and the company reported a limited impact from volatile foreign exchange rates.
Mondi is seeing stable to higher selling prices and expects the steady overall progress to continue for the rest of the year. However, planned maintenance shutdowns are having an impact on profits.
This is a positive update for investors and we continue to see these shares as a solid long-term buy for medium risk investors seeking a balanced portfolio.
This is thanks to the wide diversity of the company’s products and the steady increase in demand for packaging around the world from online retailers and supermarkets.