Shares in paper and packaging giant Mondi have slumped after the firm revealed it is facing soaring costs as a result of the Iran war. The FTSE 100 firm saw its share price drop by more than six per cent in early trading, as it warned it has already faced
Felix Armstrong
Friday 24 April 2026 8:39 am | Updated: Friday 24 April 2026 8:51 am
Shares in paper and packaging giant Mondi have slumped after the firm revealed it is facing soaring costs as a result of the Iran war.
The FTSE 100 firm saw its share price drop by more than six per cent in early trading, as it warned it has already faced higher energy, raw material and logistics costs because of the Middle East conflict.
The effective blockage of the Strait of Hormuz has sent energy and supply chain costs soaring since war broke out in February.
Mondi said on Friday: “Significantly heightened geopolitical tensions in the Middle East further increased volatility in an already complex operating environment.
“We have a limited direct exposure to the region and all operations continue to run safely, with the wellbeing of our colleagues remaining our highest priority. We are actively responding with pricing actions.”
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The firm reported first quarter earnings of £212m, down 27 per cent year on year and one per cent from the previous quarter.
Mondi is hiking prices to offset these rising costs caused by the war in the Middle East.
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Chief executive Andrew King said: “These pressures persist into the second quarter and we are taking pricing actions to mitigate their impact.”
Due to the time lag in passing these supply chain costs onto the customer, the firm said it expects prices to increase in the third quarter of this year.
The firm’s share price fell by 6.2 per cent in early trading, bringing the stock to 788p.
Factories due to shut
The Surrey-based firm said its earlier decision to shut plants in Hungary, Poland and Germany will cost 450 jobs.
This brings the number of factories due for closure to six, after Mondi already said it would be shutting locations in Turkey, Hungary and Germany.
Mondi, which was founded in South Africa in 1967, employs around 24,000 people across 100 production sites in more than 30 countries.
The firm is a dual-listed company, with Mondi plc listed in London while Mondi plc is listed on the Johannesburg Stock Exchange.
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