Saturday 10 December 2016

Smurfit Kappa profit rises €161m as net debt grows

Published 23/03/2016 | 07:54

Tony Smurfit, left, who recently succeeded former CEO Gary McGann, right, pictured at Smurfit Kappa AGM
Tony Smurfit, left, who recently succeeded former CEO Gary McGann, right, pictured at Smurfit Kappa AGM

Profits at packaging giant Smurfit Kappa increased by €161m last year as the firm's net debt grew to €3.05bn.

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According to the company's annual results for 2015 group earnings before interest tax depreciation and amortisation (EBITDA) increased by €21m up to €1.18bn.

The company improved its efficiency with its EBITDA to revenue margin rising incrementally to 14.6pc.

Smurfit chairman Liam O'Mahony says the firm has established a "strong platform for growth" and expects to deliver good earnings growth in 2016.

"While this will, to some extent, be influenced by the broader macro-economic environment, we are confident our current investment initiatives, our geographic diversity,our integrated business model and our strong free cash flow generation positions us well for 2016 and beyond," he said.

Over the course of the year Smurfit splashed out €380m on acquisitions with group financial officer Ian Curley saying it didn't have any material impact on the firm's leverage position.

"Allowing for net negative currency movements, hyperinflation and acquisitions, the underlying year-on-year move in revenue was an increase of €90m with generally higher revenue across the region," Mr Curley said.

Smurfit's net debt ratio against its earnings also increased to 2.6 times.

Free cash flow at the firm increased by €26m to €388m.

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