Business Irish

Monday 20 August 2018

Revenue at Smurfit Kappa up 5pc to €4.4bn in six months

Tony Smurfit
Tony Smurfit
Ellie Donnelly

Ellie Donnelly

Revenue at Smurfit Kappa is up 5pc to €4.4bn in the six months to June 30.

During the period the group reported earnings before interest, taxation, depreciation, and amortisation (EBITDA) of €724m, a 27pc increase year-on-year.

The strong performance was driven by the group’s European market, which reported an EBITDA margin of 17.3pc for the first half of the year, with corrugated volume growth of 3pc.

Smurfit said that market demand in Europe remains strong and the group has continued to recover corrugated pricing in line with expectations.

Operating profit before exceptional items increased a massive 48pc to €529m during the six month period, while basic earnings per share increased 68pc year-on-year to 124.5 cent.

"SKG is pleased to deliver significant improvement against our key performance measures," Tony Smurfit, group CEO, said.

"With an increase in EBITDA of over 27pc to €724m and an EBITDA margin of 16.4pc our first half performance reflects the quality of our assets, geographic reach and market positions. SKG's integrated business model and a performance-led culture continue to drive demonstrably superior returns."

The group's Americans market reported a year-on-year improvement in EBITDA margin to 15.2pc for the first half as the recovery of input costs continues, the group said.

Smurfit said that demand in this market is strengthening with improving corrugated growth.

Looking forward Smurfit said that business conditions remain "strong".

"We are excited about our prospects and we continue to expect our 2018 EBITDA to be materially better than 2017."

"Reflecting the board’s confidence in the group’s performance and prospects the interim dividend is increased by 10pc to 25.4 cent per share."

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