Sappi North America Price Increase

Mondi delivered strongly in the first quarter of 2022. Demand was good across the business, supported by our broad range of innovative, sustainable packaging and paper solutions, product quality and customer service. Higher average selling prices more than offset continued cost pressures. Underlying EBITDA for the first quarter was €574 million, up 63% compared to the prior year period (Q1 2021: €353 million) and up 41% on a sequential basis (Q4 2021: €406 million). In the current context, the Group believes it is appropriate to report that excluding the Russian operations, underlying EBITDA for the first quarter was approximately €460 million, up around 70% compared to the prior year period. This performance is testament to the continued dedication of our people, our strong customer relationships and the strength of our integrated business model.

The last remaining manufacturer Opal will cease production of Reflex at the Maryvale mill, with up to 200 jobs in doubt. The M5 occupies a shed nearly half a kilometre long, turning forest pulp into tonnes of Reflex white copy paper daily. Last financial year it produced 116,000 tonnes of copy paper for the domestic market, plus 88,000 tonnes for export. In December it was switched off indefinitely. Workers signed the final roll with “last one” and “RIP M5”. The mill produced its last ream of copy paper in January. On Tuesday Reflex’s manufacturer, Opal, announced it would close the M5 and cease Reflex paper production permanently. Its packaging lines of brown kraft paper and paperboard will continue.

The company recorded operating income of $48 million in the quarter, compared to $53 million in the fourth quarter of 2017. Operating results benefitted from the continued positive price momentum across most of our product offerings ($37 million), a decrease in maintenance outages and lower share-based compensation expense. These favorable elements were not sufficient to offset the significant increase in freight costs, seasonally higher energy costs, aggravated by unusually cold weather conditions, an increase in market-based stumpage fees and a decrease in shipments. Sales volumes were lower due to transportation challenges, timing of export sales, seasonally lower demand for supercalendered papers and lower productivity. The operating results in the previous quarter also included a gain on the disposition of assets of our Mokpo (South Korea) paper mill ($13 million). Click Read More below for additional information.