Mondi PLC (LSE:MNDI) shares were the biggest fallers on the FTSE 100 on Monday morning after the paper and packaging maker reported a fall in profits in the third quarter of 2025, with trading expected to remain challenging.
Underlying EBITDA of €223 million was reported for the quarter, including €20 million of forestry fair value gains, compared to €274 million in the second quarter and €290 milllion in the first.
Volumes were affected by subdued demand, while selling prices declined across most grades, with maintenance shutdowns extended to manage production in softer markets.
Performance was weaker than the second quarter in both corrugated and flexible packaging, while uncoated fine paper was significantly impacted by lower demand and prices.
Mondi said it expects trading conditions to stay difficult through year-end but highlighted its focus on operational efficiency, cost control and cash generation.
Chief executive Andrew King said: “Trading conditions in the third quarter were challenging, with softer volumes and declining prices across most pulp and paper grades.”
He added that the group remains focused on margin management and cost optimisation to navigate current headwinds.
The company has completed its major expansion projects and is now prioritising productivity ramp-up and cash generation.
Mondi shares fell 14.1% to 899p in early trading.