Mondi plc (MNDI) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone, and thank you for joining today's call at short notice. As said, I'm Andrew King, Group CEO, and with me is Mike Powell, our Group CFO. As you all have seen from our statement, the challenging market environment we spoke about at our half-year results in July has continued through the third quarter. This resulted in an underlying EBITDA of $223 million for the quarter. Across the period, we saw subdued market demand impacting sales volumes in the upstream pulp and paper businesses in particular. And since we last reported results at the end of July, we've also seen further pulp and paper price declines across most grades. Our packaging converting operations delivered a stable performance when compared to the prior quarter, despite this difficult backdrop. Challenging trading conditions are expected to persist for the remainder of this year as demand side confidence remains fragile. Furthermore, key markets remain in oversupply and current selling prices are lower than the third quarter averages. While we remain confident in the structural drivers underpinning through cycle growth in our packaging solutions, we are equally cognizant of the impact of the current prolonged cyclical downturn on near-term performance. In response, we have intensified our focus on operational efficiency, cost control, and cash generation, mitigating impact of the current softer markets while ensuring we are well-positioned to capture growth and deliver enhanced returns when favorable conditions return. In this context, in the six months since completing the acquisition of Schumacher, we have identified an additional 10 million of cost synergies taking the total identified synergies to 32 million euros. As a further step to streamline our organization, facilitate cos...