Mondi (LSE:MNDI) reported underlying EBITDA of €212 million for the first quarter of 2026, broadly unchanged from the previous quarter. Increased sales volumes in its Corrugated and Flexible Packaging divisions helped support performance, though gains were offset by weaker pricing and higher energy-related input costs.
The group continued to benefit from recent capacity expansions as well as its diversified exposure across regions and product lines. However, margins in converting operations came under pressure, with the exception of Consumer Flexibles, which remained relatively stable.
Rising geopolitical tensions in the Middle East have contributed to higher costs for energy, raw materials, and logistics. In response, Mondi has implemented price increases, which it expects to be fully reflected in results by the third quarter. At the same time, the company is stepping up cost-saving measures, announcing the closure of three additional converting plants in Europe. This brings the total number of recent closures to six and will result in around 450 job cuts as Mondi reshapes its production footprint and focuses on cash generation.
The outlook remains challenging, with margin pressure, earnings volatility, and inconsistent free cash flow conversion weighing on the investment case, alongside a gradual increase in leverage. However, some mitigating factors are emerging, including improved short-term share price momentum, an attractive dividend yield, and management’s focus on disciplined capital expenditure, cost efficiencies, and synergy delivery.
More about Mondi plc
Mondi plc is a leading international packaging and paper group operating across more than 30 countries. The company employs around 24,000 people and delivers a wide range of paper and packaging solutions for both consumer and industrial applications. Sustainability is central to its strategy, with a strong emphasis on circular economy principles and climate-conscious product innovation.
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