Smurfit shares jump as group's first-quarter revenues surge

Packaging group is stepping up its capital invesment plans as revenues grew by 6% in the first three months of this year

Chief executive Tony Smurfit said the first quarter of 2021 was 'remarkable in many ways' for Smurfit Kappa Group.

Shares in Smurfit Kappa Group jumped by over 4% on the Irish-headquartered international paper and packaging giant reporting strong revenue growth and a “remarkable” start to the year.

The group said it grew its underlying revenues by 6% — to just under €2.3bn — in the first three months of the year. 

Earnings for the quarter amounted to €386m.

'Foundation for growth' 

Chief executive Tony Smurfit said the strong first-quarter showing has “set the foundation” for the group’s accelerated revenue and earnings growth for 2021.

“This performance and these prospects reflect the strength and quality of Smurfit Kappa,” he said.

The first quarter was remarkable in many ways. 

"We had strong corrugated volume growth in practically every area and all markets in which we operate. With unprecedented industry-wide shortages of supply and input cost pressures, paper prices have moved up sharply. 

"We are recovering these input costs in line with our expectations,” Mr Smurfit said.

The group is accelerating its capital investment plans with "many high-return projects" including the construction of mega plants and the acquisition of many converting machines in order to meet customers’ demand growth, Mr Smurfit said.