Mondi PLC (LSE:MNDI) has been dogged by "significantly higher" wood and energy costs but said growth in sales volumes and price rises were more than offsetting these inflationary pressures.
Underlying earnings (EBITDA) of €450mln were generated by the paper and packaging giant in the third quarter of 2022 surged 55% year-on-year.
The FTSE 100 group, which was demerged from miner Anglo American in 2007, said increased demand and tight market conditions for wood continue to impact availability and pricing, having warned at the half-year stage that wood costs had surged as European households were buying it up for firewood amid a dearth of Russian gas.
But it said it was able to mitigate the impact of higher gas and electricity costs as most of its pulp and paper mills generate the majority of their energy internally, with around 80% of the fuels used in this process from biomass sources, and only around 10% of fuel sourced from natural gas.
"Higher average selling prices and overall volume growth more than offset significant cost pressures," Mondi said.
While continued inflationary pressures are anticipated in the fourth quarter, amid the significant geopolitical and macroeconomic uncertainties, it expressed confidence that the group "will continue to demonstrate its resilience and deliver a year of good progress".
The shares rose 2.43% to 1,409.50p.