Sappi updates investors on financial strategies after third quarter results

SAPPI'S share price nudged up 5.1% on the JSE on Friday after investors likely took heart from an update on the global paper and packaging group's actions since it released weak third quarter results.

- EDWARD WEST

SAPPI directors said they faced challenging operating conditions but they remained confident in the underlying strength of the business. I Supplied

(I Supplied)

The share price closed at R21.65, which is a far cry from the R50.39 it traded at a year ago, but the low price is also symptomatic of the financial positions of at least two global paper and packaging groups, Sappi and Mondi, which have both recently posted weaker financial results due to a sector that is at the bottom end of a structural adjustment and price cycle.

Mondi's share price of R105.29 on Friday was also over 41% lower than a year ago.

In August, Sappi reported a $33 million (about R577.3m) loss for the third quarter to June 2025, versus a $51m profit at the same time a year before, but it anticipated a better fourth quarter result.