Smurfit Kappa revenue and EBITDA grow 33% in Q1

Packaging company Smurfit Kappa said on Friday that both revenue and underlying earnings had grown by a third in the three months ended 31 March, reflecting the "significant, ongoing capital investment" made by the group to support customer growth and security of supply.

Smurfit Kappa stated revenues were up 33% year-on-year at €3.02bn, while EBITDA had also grown 33% to €514.0m, with an EBITDA margin of 17% for the period.

The FTSE 100-listed firm said corrugated box growth in the first quarter was 3.6%, while box growth was approximately 3% and 6% for the European and Americas regions, respectively. Smurfit stated its paper and corrugated operations performed well during the quarter across all regions and noted it had seen strong recovery and growth in its speciality business areas.

Heading into the second quarter, Smurfit Kappa highlighted that demand continued to be good, with progressive corrugated price recovery. It noted cost increases and supply constraints remained a feature of its business but said it remains "confident" in the future prospects of the business, stating its first-quarter performance had set a "strong foundation" for 2022.

Chief executive Tony Smurfit said: "This performance demonstrates the continuing benefits of SKG's integrated and resilient operating model, our geographic diversity, and recent acquisitions.

“The first quarter presented a number of significant operational challenges. Practically all input costs have risen sharply and already tight markets and supply chains have been exacerbated by the war in Ukraine. Our integrated and resilient business model has ensured security of supply in this increasingly complex environment."