JOHANNESBURG May 11 South African packaging and
paper company Mondi said on Thursday underlying
operating profit for the first quarter of 2017 was down 6
percent due to lower selling prices and inflationary cost
Underlying operating profit fell to 252 million euros ($274
million) in the three months through March from 269 million
euros a year ago, Mondi, which is also listed in London
said in a statement.
The figure was up 12 percent on the fourth quarter last year
due to higher sales volumes and prices.
"Strong sales volume growth was more than offset by a
significantly lower forestry fair value gain, inflationary cost
pressures and lower average selling prices," the company said.
The packaging paper division was impacted by lower selling
prices for containerboard, while significantly lower gains on
the value of its forestry assets, lower average export selling
prices for hardwood pulp and white top kraftliner products, and
a stronger rand impacted the South Africa division.
"As previously advised, we are experiencing some
inflationary cost pressures across the Group and the forestry
fair value gain is expected to be lower than in 2016," the
($1 = 0.9195 euros)
(Reporting by Nqobile Dludla; Editing by Keith Weir)