Trading update May 2023

Mondi, a global leader in the production of sustainable packaging and paper, today provides an update on trading for the three months to 31 March 2023 (“Q1 2023”).

Underlying EBITDA from continuing operations in Q1 2023 was €351 million and broadly flat when compared to Q4 2022 after excluding the non-cash forestry fair value gain1. The quarter was characterised by lower average selling prices; softer demand, driven in part by destocking; and lower input costs from the highs seen in H2 2022. While wood prices remained high in Q1 2023, they have now started to reduce.

• Corrugated Packaging saw softer demand, driven in part by destocking, and lower prices compared to Q4 2022.
• Flexible Packaging delivered a stable performance compared to Q4 2022, with weaker industry demand and modestly lower prices being offset by falling input costs.
• Uncoated Fine Paper demand in Europe was lower compared to Q4 2022, with prices declining towards the end of the quarter. In Southern Africa demand and pricing were stable.

We have seen a stable performance in the first quarter of 2023 compared to the final quarter of last year, with good pricing resilience from Flexible Packaging. So far in the second quarter, demand remains subdued with lower average selling prices and further input cost reduction across the business. We continue to invest in the future growth of Mondi and we are making good progress in executing on our pipeline of expansionary capital projects. We have a compelling product portfolio and a resilient business model, which positions us well to deliver attractive returns and sustainable value accretive growth.

Andrew King, Chief Executive Officer.