Smurfit Kappa to invest €400m despite profit fall

Smurfit Kappa Group (SKG) is set to spend more than €400m this year on organic investments and acquisitions, with €177m already spent in the first half.

“Growth and cost reduction investments, allied with our track record of earnings-enhancing acquisitions will continue to improve the prospects for the group,” chief executive Tony Smurfit said on the back of a mixed set of first half financial results.

Smurfit Kappa’s share price fell by nearly 3% after the group reported a 5% year-on-year rise in revenues, for the six months to the end of June, to €4.23bn, but a 21% fall in pre-tax profits to €245m and an 18% annualised fall in earnings per share to 74.3c.