Sunday 20 August 2017

Profits at Smurfit Kappa down 15pc in the first three months of 2017

Profit before tax at the paper giant Smurfit Kappa Group is down 15pc year-on-year
Profit before tax at the paper giant Smurfit Kappa Group is down 15pc year-on-year

Ellie Donnelly

Profit before tax at the paper giant Smurfit Kappa Group is down 15pc year-on-year to €109m, its first quarter results have shown.

The drop came on the back of increases in input costs.

Earnings before interest, tax, depreciation and amortisation fell slightly to €278m, a drop of 1pc from the from the first quarter of 2016.

However the company recorded revenue growth of 6pc to €2.1bn for the period.

“We are pleased to report that SKG has again delivered a strong set of results,”Tony Smurfit, group chief executive, said.

Read more: Smurfit Kappa chief's total pay drops to €2.4m

Revenues in Europe increased by €43m year-on-year, while in the Americas revenue increased by €85m year-on-year.

“These results, against a backdrop of significant recovered fibre cost inflation of approximately €30m year-on-year, reflect the continued strength of our business,” Smurfit said.

The company also reported a free cash flow increase of €16m for the three month period, up 138pc from €7m for the first three months of 2016.

The company plans to issue a final dividend for 2016 of 57.6 cent per share, a 20pc increase year-on-year.

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