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 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.
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.