Mondi

Disappointing Q3 results on weaker volumes and pricing; outlook stable

  • Oct 10 2019, 08:05 IST/BST
  • Barry Dixon
  • Company Report
  • 5 page(s)
  • Sectors : Paper & Packaging
  • Companies : Mondi

Ratings and price correct at time of issue.

  • Mondi

    Closing Price: 1546.0p

  • RATING 19/06/12

  • PREVIOUS RATING N/A

DAVY VIEW

The sharp fall in Mondi’s Q3 profits appears to be related to its kraft and uncoated fine paper grades. This should come as little surprise to investors. The good growth in corrugated volumes, combined with stable containerboard prices, gives cause for optimism in the packaging sector. Full year consensus forecasts now appear optimistic given the implied Q4 EBITDA. The stock has significantly underperformed the sector year-to-date and so may already have discounted this weaker outcome.

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Oct 10 2019, 08:05 IST/BST

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