Mondi feels inflationary cost impact on operating profit

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.