Smurfit Kappa pushes interim dividend higher

Paper and packaging giant, Smurfit Kappa has announced a 30% increase in its first half dividend for shareholders to 20c per share; bringing the full-year 2015 payment to 60c per share.

The Dublin-based group yesterday reported a 1% year-on-year increase in first half revenues to just under €4bn, with pre-tax profits up 7% to €243m. Basic earnings per share rose 17% to 73.2c. Operating profit, before exceptional items, were down by 4% at €348m; while EBITDA fell by 2% to €551m. The latter figure was affected by exchange rates in Latin America, particularly Venezuela.

However, the strong earnings per share performance was – according to outgoing chief executive, Gary McGann – underpinned by “good underlying business conditions, significantly reduced long-term funding costs and the earnings impact of capital investments, acquisitions and efficiency programmes completed within the last 12 months.” The group has spent €189m on acquisitions in the year to date and said it expects its EBITDA margin – of 14% - to improve sequentially through the second half of 2015.