Mondi plc has reported its financial performance for the third quarter of 2025, with the Mondi Q3 2025 Results showing an underlying EBITDA of EUR223 million, including a EUR20 million forestry fair value gain. According to the company, the quarter was still challenging with lower volumes of sales and reduced paper prices negatively impacting the company performance.
The Corrugated and Flexible Packaging performance decreased compared to the second quarter because of the low demand and scheduled downs in the operations of pulp and paper. Packaging converting businesses also did not deteriorate in the quarter under review as compared to the preceding quarter. The most affected segment was Uncoated Fine Paper which was hit by a poor demand, maintenance activity and price competition.
Market Conditions And Operational Focus
The poor state of trade conditions is predicted to continue in the remainder of 2025 as planned by Mondi due to low demand confidence and excess supply in major markets. The company has remained strong in its cost effectiveness and cash generation policy to remain competitive.
The merger between Schumacher and the newly acquired business is doing fine. Mondi has established to have other cost synergies amounting to EUR10 million and the overall amount of cost synergies is expected to be EUR32 million in three years time after completion.
Business Reorganisation And Investment Update
Mondi restructured its business into two business units, Corrugated Packaging (including Uncoated Fine Paper) and Flexible Packaging, starting on October 1, 2025. The reorganization will be geared towards ease of decision making, cost reduction, and facilitate operational synergies throughout its production base.
After some time of investment, Mondi is in its final phase of expansion cycle. Significant capacity projects have been done on schedule and within budget. The team is currently concerned with full productivity ramp-up and enhancement of cash returns.
There is still potential influence of market conditions on current profitability and the net incremental contribution of recent projects is projected to about EUR30 million in 2025. The company has put on hold its planned sack kraft paper machine investment in Hinton, Canada due to prevailing market conditions although it has the flexibility to go ahead once the demand picks up.
Outlook
Chief Executive Andrew King indicated that Mondi is still working on the margins, cost reduction and continuous improvement to safeguard the value and place the business in a better position once the markets recover.
The Mondi Q3 2025 Results highlight the company’s resilience, supported by its vertically integrated operations, geographic diversity, and strong cost base. Mondi still finds long term growth potentials in sustainable packaging solutions.
