Smurfit Kappa profits rise 20% in first quarter

Packaging group Smurfit Kappa saw its profit jump by 20% in the first quarter of this year, netting the company an extra €30m.

The company’s first-quarter earnings before interest, taxes, depreciation, and amortisation (EBITDA) were €246m, a 1% increase on last year.

The group’s strong performance was boosted by its Latin American operation. Businesses in that region contributed 23% of the group’s overall EBITDA in the quarter, worth over €56m.

Chief executive Gary McGann said: “We are pleased to report a relatively strong EBITDA of €246m for the first quarter.

“Despite significant increases in input costs and downward pressure on box prices in the period, our EBITDA margin of 13.5% reflects the efficiency of our integrated system in Europe.”

Barry Dixon, an analyst with Davy Stockbrokers, said the company would outperform the market and was earning money to pay down its debts.

Smurfit Kappa is carrying debts of €2.7bn, although this has reduced by 9% over the last year.

Smurfit Kappa chairman Liam O’Mahony told the AGM yesterday that the board is recommending a final dividend of 15c per share for last year. The dividends are to be paid in October and May.

“The board believes that SKG now has the capital structure and cash-flow characteristics to sustain a progressive dividend stream,” Mr O’Mahony said.


Lifestyle

Throw all the veg you’ve got into this easy dish.Jack Monroe’s recalibration supper recipe

In a time when our shopping and cooking needs to be efficient and easy, we are bringing back our One List, Five Meals recipe pages.Michelle Darmody's One list, Five meals

What is the future of fashion and how will the ‘high street’ look when this is all over? Corina Gaffey asks those in the knowThe future of fashion: How the crisis will impact the retail industry and what we wear

Surveying the global market, Des O’Sullivan says when the going gets tough, the tough get goingHow art world is putting changed times in picture

More From The Irish Examiner