Categories: South Africa

Stronger rand negatively impacts Mondi SA results

The “notable strengthening of the rand” against major foreign currencies during Mondi’s South Africa division’s third quarter played a significant…

The international packaging and paper group added that this factor combined with the continued weakness of the US dollar wood pulp price, which was down 16% year-on-year and down 3% on the preceding quarter, greatly impacted Mondi SA’s export-orientated pulp and containerboard operations.

READ 6 tactics to achieve successful sales at the market

The Mondi Group posted a €227 million (about R3,5 billion) underlying operating profit (UOP) for its third quarter ended 30 September 2016. This was 3% up on the €221 million (R3,4 billion) UOP achieved in the corresponding period in 2015.

“As anticipated, generally lower average selling prices and a significantly lower fair value gain on forestry assets resulted in a 12% reduction in UOP in the second quarter of 2016 (€259 million or R4 billion),” a statement by the Mondi Group said.

Mondi said that forestry gains of €8 million (R124 million) in its SA division during the third quarter were significantly lower than the €48 million (R747 million) forestry gains achieved in the first half of 2016.

“We continue to make good progress on our previously announced major capital investment projects at our high-quality, low-cost operations in central Europe and South Africa,” Mondi Group’s chief executive, David Hathorn said.

“At our Richards Bay mill, the projects to upgrade the wood yard and provide capacity to produce unbleached kraftliner are nearing completion with planned project tie-ins to be completed during the maintenance shutdown in October,” he said.

Mondi said that it expected to benefit from stable to higher selling prices in a number of its key product segments in 2017.

Recent Posts

Damara sheep: No environment too tough

Since importing his first Damaras from Namibia in the late 1980s, stud breeder Frank Blumenthal has firmly believed in the…

3 hours ago

Court case over expropriation recommendation looming

While Parliament's Joint Constitutional Review Committee (CRC) is preparing its final parliamentary report on the possible amendment of Section 25…

5 hours ago

Leafroll virus in vines can be beaten – here’s how

Leafroll virus is a serious threat to South Africa’s viticulture industry: it shortens the lifespan of vineyards and has a…

2 days ago

SA Chardonnay deserves better prices – experts

It was evident at this year’s Chardonnay Celebration, hosted by De Wetshof near Robertson, that Chardonnay had come a long…

2 days ago

Farmers welcome sharp decline in fuel prices

The large drop in the diesel price that can be expected for December, as announced by the Automobile Association (AA)…

3 days ago

A healthy profit from pasture-raised eggs

As a technician specialising in the installation and repair of gates, Rico Vergotine had little reason to be interested in…

3 days ago

This website uses cookies.