Research

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Forestry & Paper Mondi: Q3 22E Insights

Key message: Strong Q3 22E expected on the back of strong pricing environment despite significant cost pressures. We expect EBITDA to increase by 74% y/y (+4% q/q). Potential special dividend from planned Russian disposal equates to ZAR 62.64/share (23% yield).

Forestry & Paper: Textile Fibre Insights

Key message: DP price -7% m/m (+11% y/y) in September, with the Q3 22A average of USD 1,175/t down 7% q/q. (+11% y/y). Cotton and VSF were down 3% w/w. Cotton is now trading at a 1% discount to VSF. Spot DP is now USD 1,048/t. VSF inventory days stable at 27.5, while the average op. rate improves further to 61%. VSF theoretical profit further in the red at -USD 231/t.