Packaging firm Mondi's profit rises sequentially, says tariff impact limited

May 8 (Reuters) - Packaging firm Mondi MNDI.L reported a sequential increase in first-quarter profit on Thursday, as cost cuts and fewer maintenance shutdowns helped offset the industry-wide subdued demand, and said the direct impact of tariffs was limited.

The group's shares were up about 3.3% at 1,146.5 pence.

Mondi is banking on price hikes to bolster it from this quarter and is also ramping up capacity for its sustainable packaging products.

Mondi CEO Andrew King cautioned of the direct and indirect impacts of rising trade tensions on an industry that has been trying to recover from a slowdown following a pandemic-driven boom.

"While the direct impact of announced tariffs on our operations is limited, we remain mindful of the potential second-order impacts that could affect trade flows, consumer confidence and supply chains," King said in a statement.

Last month, Packaging Corp of America PKG.N forecast current-quarter profit below expectations as tariffs both hit demand and led to higher freight and logistics costs.

Mondi said its reported underlying earnings before interest, taxes, depreciation, and amortisation rose to 290 million euros ($327.2 million) in the first quarter from 261 million euros in the fourth quarter.

Jefferies analysts said Mondi looks well-positioned for strong earnings growth and an upside to free cash flow "when packaging ultimately recovers."

($1 = 0.8863 euros)