Thursday 21 November 2019

Smurfit Kappa 'ideally positioned' to deal with 'mega trend' of sustainable packaging

Smurfit Kappa chief executive Tony Smurfit. Photo: Jason Clarke
Smurfit Kappa chief executive Tony Smurfit. Photo: Jason Clarke
Ellie Donnelly

Ellie Donnelly

Tony Smurfit, the chief executive of Smurfit Kappa, has said the company is "ideally positioned" to take advantage of the "mega trend" of consumer demand for sustainable packaging solutions.

"Consumers are increasingly demanding sustainable packaging solutions and with our unique applications, knowledge and expertise in paper-based packaging we are ideally positioned to take advantage of this mega trend," he said.

His comments came as the Irish packaging giant saw its earnings increase ahead of the group’s stated targets in the nine months to 30 September.

Earnings before interest, taxation, depreciation, and amortisation (EBITDA) jumped 11pc to €1.25bn during the period, according to a trading update from the company.

Meanwhile, the Ftse-100 firm reported revenue growth of 3pc to €6.85bn during the period.

In Europe, Smurfit's corrugated box volume growth was close to 4pc year-on-year or approximately 2pc on an organic basis.

The company said corrugated pricing has again been "in line with expectations".

Elsewhere, in the Americas, organic volume growth was approximately 2pc with continued EBITDA and EBITDA margin improvement year-on-year.

"While there have been, and continue to be, obvious macro-economic and political challenges, SKG's very strong performance against this backdrop shows, once again, the quality of our business and the benefits of our geographic diversity," Mr Smurfit said.

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