Chief executive Mikko Helander said the demand had continued to improve and prices had increased for all its main products.

"We will actively carry out price increases in the future to cover the higher fibre costs. The profit improvement measures in the paper business are progressing and we expect them to be completed as planned," he said.

M-real delivered 372,000 tonnes of consumer packaging in the three months to June and said the strategic review of the paper business continued.

"The structural change from a paper company to become more clearly a packaging material producer has proceeded according to plan," M-real said in today's statement.