UK Mondi to raise prices as demand surges
British packaging firm Mondi announced on Thursday that it plans to increase prices across all paper grades this fiscal year, reporting a boost in its order book.
Packaging companies enjoyed a surge in business during pandemic lockdowns, however, they faced challenges in the past year with declining demand and lower prices as customers reduced their stock due to difficult market conditions.
“In the first quarter of 2024, selling prices are generally lower than the averages achieved in the second half of 2023.” CEO Andrew King stated.
King further stated that they were noticing enhancements in their order books and were raising prices across all paper grades. While input costs are still high compared to past levels, they have largely stabilised since the end of 2023.
The company reported a decrease in sales volumes across its kraft paper and paper bag value chains due to reduced demand and softer economic conditions.
The FTSE 100 company posted a 35 per cent decline in underlying core profit, amounting to €1.20 billion ($1.30 billion) for the year ending December. 31.
The company’s annual group revenue also dropped by about 18 per cent to €7.33 billion. Despite these challenges, the company plans to maintain its full-year dividend at €70 per share, the same as the previous year.
