Finance
Packaging Group Mondi to Raise Prices as Iran War Increases Costs
Published by Global Banking & Finance Review®
Posted on April 24, 2026
2 min readLast updated: April 24, 2026
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Quick Summary
Mondi is raising prices in response to sharply higher energy, raw material and logistics costs stemming from the Iran war, and expects the full impact of these moves to become evident in the third quarter.
Packaging group Mondi to raise prices as Iran war increases costs
Mondi Faces Profit Drop and Rising Costs Amid Industry Turmoil
April 24 (Reuters) - Paper and packaging company Mondi is responding to increased costs from the Iran war by raising prices, it said on Friday, after its first-quarter profit fell, sending its shares more than 5% lower.
Industry Slowdown and Impact of Iran War
The broader paper industry was slowing even before the war that erupted with U.S.-Israeli airstrikes at the end of February, leading to unprecedented energy supply disruption that has stoked commodity prices.
Mondi’s Cost-Cutting Measures
Mondi, which supplies paper bags, containerboard, and printing papers, has axed around 1,000 jobs over the last year. It has been reorganising its businesses and closing plants as it seeks to cut its costs.
Volatility and Price Increases
On Friday, it said the war "increased volatility in an already complex operating environment" and it was experiencing higher energy, raw material and logistics costs even though it had limited direct exposure to the Middle East.
Without specifying the size of price increases, it said it expected their impact to be fully reflected in its third-quarter results.
Market Reaction and Industry Outlook
Shares were down 5.8% at 793.6 pence at 0744 GMT, making Mondi the biggest loser in the FTSE 100.
Global Price Pressures
As the rest of the industry also adjusts to inflation, earlier this month Suzano, the world’s largest pulp producer whose products are used in Kimberly‑Clark’s Cottonelle toilet paper and Kleenex tissues, warned global prices for toilet paper, tissues and diapers could rise.
Financial Results and Analyst Commentary
Despite improving volumes, Mondi's underlying core profit fell by nearly 27% year-over-year to 212 million euros ($247.57 million), including 8 million euros in gains from the revaluation of some of the company's forest assets, in the first quarter ended March 31.
Excluding those gains, analysts at JPMorgan said Mondi had missed their expectations.
($1 = 0.8563 euros)
(Reporting by Neeshita Beura in Bengaluru; Writing by Pushkala Aripaka; Editing by Mrigank Dhaniwala and Barbara Lewis)
Key Takeaways
- •Mondi’s Q1 underlying core profit fell to €212 million from €290 million a year earlier, highlighting margin pressure due to heightened costs and weak demand (Reuters).
- •The Iran war has disrupted petrochemical and aluminum supply chains—pushing up resin, energy and transport costs across the packaging industry, prompting broader price hikes (Reuters; Packaging Dive).
- •Globally, packaging firms face surging input prices and stock-market sell-offs, with industry-wide inflation and logistical bottlenecks forcing cost pass‑throughs and strategic shifts (Morningstar; Reuters).
Frequently Asked Questions about Packaging group Mondi to raise prices as Iran war increases costs
1Why is Mondi raising packaging prices?
Mondi is raising packaging prices due to increased energy, raw material, and logistics costs linked to the Iran war's impact on global supply chains.
2How has the Iran war affected Mondi's business?
The Iran war has caused higher costs and greater volatility, even though Mondi has limited direct exposure to the region.
3When will Mondi's price increases be fully reflected?
Mondi expects the full impact of its price rises to be reflected in the third quarter.
4What was Mondi's profit in the first quarter?
Mondi reported an underlying core profit of 212 million euros in the first quarter, down from 290 million euros a year ago.
