Smurfit Kappa reinstates dividend

Packaging group Smurfit Kappa will reinstate its dividend following a two-year hiatus after successfully lowering its debt and on the back of an improved outlook.

Europe’s leading containerboard and corrugated packaging producer group sliced €358m off its €2.75bn debt pile during 2011, and posted a 12% rise in earnings.

“We’re reinstating that dividend as promised at the first opportunity when... the business is strong enough and the outlook good enough to be able to sustain dividends on a progressive basis,” Smurfit chief executive Gary McGann told Reuters following the results yesterday.