Packaging firm Mondi hikes prices again to counter rising costs

Oct 15 (Reuters) - Mondi said it raised prices for several paper grades in the third quarter to offset energy and raw material costs, with benefits from the increases and a strong order book expected to support performance towards the end of 2026 and into 2027.

Shares of the paper and packaging firm fell as much as 8.8% in early trade on Thursday, weighed down by persistent cost pressures.

Mondi, which makes sustainable packaging products, had flagged price rises in April and has been cutting costs after the Iran war drove up energy and raw material costs and disrupted supply chains.

"As we enter the fourth quarter, higher packaging paper prices are expected to support performance, notwithstanding ongoing input cost pressures," CEO Andrew King said in a statement.

Mondi did not disclose the size of the price increases, but JP Morgan analysts said any sequential gains from the hikes into the fourth quarter would be minimal as energy prices continue to rise.

Underlying core profit rose 17.4% to €196 million ($219.81 million) in the three-month period ended September 30 from the previous quarter, which included a forestry writedown. Excluding that impact, core profit declined, mainly due to planned maintenance shutdowns.

($1 = 0.8917 euros)

(Reporting by Amna Mariyam and Pushkala Aripaka in Bengaluru; Editing by Subhranshu Sahu)