Research

Key message: We maintain an overweight position on Mondi, anticipating improving profitability in 2024, as destocking nears completion and producers aim for price hikes amid improving industry fundamentals.

Key message: Sappi’s Q1 24A results were bolstered by a change in accounting policy and a one-off energy subsidy, reflecting positively in reported EBITDA figures. Adjusting for these factors, EBITDA was closer to $112 million, providing a clearer view of underlying operational performance. Looking ahead, the company anticipates gearing to pick up over the next two quarters, driven by the payment of dividends, closure costs, and an uptick in capital expenditure. Sappi expects Q2 profitability to be in line with Q1.

Sappi will release Q1 24E results tomorrow at 8am, with a conference call at 4pm. Sappi will also host its AGM tomorrow at 2pm.