Friday 18 August 2017

Powerflute sees revenue surge after Corenso takeover

Dermot Smurfit
Dermot Smurfit
Michael Cogley

Michael Cogley

Powerflute's acquisition of Corenso has helped the firm more than double its revenue over the course of last year.

The packaging company, which is chaired by Dermot Smurfit, posted group sales of €357.2m in 2015, the first full year that Corenso was part of Powerflute.

Mr Smurfit said 2015 was another successful year for the firm, which doubled in size after it acquired Corenso in December 2014 for around €80m.

"Despite some recent softening of market conditions, both coreboard & cores and packaging papers currently have satisfactory forward order books at price levels comparable with the prior year.

"In the absence of any marked change in the external environment, we currently expect that 2016 will be another successful year for the group," Mr Smurfit said.

Earnings before interest, tax depreciation and amortisation, excluding non-recurring items, increased to €55.2m from €20.9m in 2014 while the firm doubled its dividend from 1.5c per share to 3c.

The group's profit before tax rose from €8.6m to €37.7m with earnings per share growing to 9.1c. While further acquisitions are unlikely this year, the firm signalled that it would look to acquire more in the future.

Davy Stockbrokers' Barry Dixon said Powerflute may be in a position to become debt free sooner rather than later.

"It had €64m of net debt at the end of 2014; it has €37m at the end of 2015, so it's been fairly rapid debt reduction through internal cash generation," Mr Dixon said.

"If it doesn't do any deals this year they'll be virtually debt free by the end of the year," he added.

Powerflute shares closed up 0.15pc at 83.25 pence in London.

Irish Independent

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