€9m loss, but Smurfit expects 20% growth

SMURFIT Kappa Group (SKG) is expecting to generate earnings growth of around 20% this year, despite just posting a pre-tax loss of €9 million for the first half.

The Dublin-headquartered international paper and packaging giant yesterday reported an 11% year-on-year increase in EBITDA (earnings before interest, tax, depreciation and amortisation) to €404m for the first six months of the year and a 22% rise in operating profit to €206m. However, after an exceptional cost of €56m (largely relating to an asset swap deal) operating profit for the six months to the end of June amounted to €150m.

Meanwhile, the group’s pre-tax loss of €9m — technically down from a pre-tax profit of €39m at the corresponding stage last year — was impacted by an exceptional cost of €42m. This, again, largely related to SKG’s asset swap deal, which saw it acquire the corrugated operations of British paper maker, Mondi and sell it its European sack converting operations.