UPM’s Q3 2022 sales grew by 36% year-on-year from €2.52bn (£2.18bn) to €3.42bn while its comparable EBIT jumped by 84% from €424m to €779m.

The business said its financial performance is expected to continue above last year’s level and comparable EBIT is expected to increase in 2022 from 2021.

It stated: “Exceptionally high uncertainty continues in the business environment, as highlighted in UPM’s previous outlook. However, during Q3 2022 no major downside risks materialised and UPM reached record quarterly earnings.”

Good demand continued in most of UPM’s businesses in the period, while sales prices offset the impact of the continued increase in variable costs, the company said.

“Production and delivery volumes were back to normal and operational efficiency was on a good level,” it added.

UPM Energy, UPM Specialty Papers, UPM Raflatac, UPM Communication Papers, and UPM Biofuels all achieved new record quarterly results while UPM Fibres and UPM Plywood recorded strong results.

In the first half of the year, production at UPM was significantly affected by strike action at its Finnish mills, which began in January and was not resolved until April.

Meanwhile, Mondi’s underlying Q3 EBITDA from continuing operations for the group, excluding its Russian operations which have been classified as held for sale and presented as discontinued operations, was €450m, up 55% year-on-year from €290m in Q3 2021.

It has not yet received the necessary approvals from the Russian Federation for the sale of its biggest operation there. 

Mondi said higher average selling prices and overall volume growth more than offset significant cost pressures.

Andrew King, chief executive officer, said: “Mondi delivered strongly in the third quarter. My sincere thanks go to all of my colleagues for their ongoing agility and commitment in challenging times.

“We continue to partner with our customers, helping to lead the way towards a circular economy with our unique portfolio of innovative and sustainable packaging and paper solutions. We also remain focused on operational efficiency and cost control.

“Our ambitious expansionary capital investment programme is progressing well, as we continue to invest in our cost advantaged asset base to capture opportunities in our structurally growing packaging markets, enhance our competitiveness and deliver sustainably into the future.”

Mondi said its input costs were significantly higher in the quarter, both year-on-year and sequentially, largely due to higher wood and energy costs. Increased demand and tight market conditions for wood continue to impact availability and pricing, it added.

“We were able to mitigate the impact of significantly higher European gas and electricity costs as most of our pulp and paper mills generate the majority of their energy needs internally, with around 80% of the fuels used in this process from biomass sources, and only around 10% of our fuel sourced from natural gas,” the company stated.

“We look to mitigate the effect of inflationary pressures on the cost base through our cost control initiatives.”

Mondi said that, while significant geopolitical and macroeconomic uncertainties remain, it is anticipating continued inflationary pressures on costs as it enters the fourth quarter, but is confident the group “will continue to demonstrate its resilience and deliver a year of good progress”.

Its Q3 sales were not stated. In 2021, it had revenues of €7bn and underlying EBITDA of €1.2bn from continuing operations.