Mondi - Strong pricing and volume fundamentals offset by cost pressures; outlook more cautious

Davy Research
/Read Important Disclosures

While underlying demand and pricing remains strong across most of Mondi’s divisions, this has not been sufficient to offset cost and FX pressures. This is likely to result in a 2-3% reduction in our full-year forecasts. The issue facing the industry now is whether, given the strong demand fundamental, it has the capacity to recover cost increases. Over time, we expect that it will but margin pressure may persist in the short term.