In the three months to end March 2015‚ the company said underlying profit lifted by 29% to R236m compared with the year-earlier period.
Mondi said the strengthening of the US dollar versus the euro had provided a net benefit to the group‚ both through translation of dollar-denominated sales and through the support provided to European selling prices for a number of the group's key paper grades.
In the South African division‚ the dual-listed company said the division had benefited from higher average domestic selling prices.
"Domestic demand for the division's key grades was lower than the previous quarter due to seasonal effects in uncoated fine paper and the weaker industrial sector affecting demand for pulp and containerboard‚" the company said.
Mondi's stock had its "outperform" rating restated by equities researchers at Credit Suisse in a research report issued on Tuesday. Credit Suisse's price target points to a potential upside of 14.41% from the company's current price.
The company's key operations are located in central Europe‚ Russia‚ the Americas and SA. Mondi is fully integrated across the packaging and paper value chain - from the management of its own forests and the production of pulp and paper‚ to the conversion of packaging paper into corrugated packaging‚ industrial bags‚ extrusion coatings and release liners.
Looking ahead‚ Mondi said much was dependent on the macroeconomic environment.
"However‚ given the group's robust business model and clear strategic focus‚ management remains confident of continuing to deliver industry-leading performance and making good progress for the year‚" the company said.
At 10.03am‚ the share price was up 8.84% to R266.50‚ valuing the company at about R89.9bn.
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