Smurfit Kappa revenue rises in first quarter

Revenue at Smurfit Kappa (SKG) grew by a third in the first three months of the year, the packaging giant said, setting a strong foundation for the year.

The group said revenue was just over €3 billion for the three-month period, with earnings before interest, tax, depreciation and amortisation of €514 million, also 33 per cent higher than the same period a year earlier.

"This performance demonstrates the continuing benefits of SKG's integrated and resilient operating model, our geographic diversity and recent acquisitions. It also reflects the significant investment SKG has made, and continues to make, to support our customers' growth," said Tony Smurfit, group chief executive.

“Our ability to provide security of supply to customers and deliver market-leading, innovative and sustainable packaging solutions is a clear differentiator for SKG.”

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Its corrugated box business saw growth of 3.6 per cent. Box growth was approximately 3 per cent in Europe and 6 per cent in the Americas region.

However, he noted a number of significant operational challenges during the period, including higher costs and the war in Ukraine. Smurfit announced earlier this month it would exit the Russian market.

Rising costs

“Practically all input costs have risen sharply and already tight markets and supply chains have been exacerbated by the war in Ukraine,” he said. “Our integrated and resilient business model has ensured security of supply in this increasingly complex environment.”

Smurfit said it had made significant, ongoing capital investment to support customer growth and security of supply.

Looking ahead, demand remains good in the second quarter, the group said, and it remained confident in the business’s future prospects.

A delegation from the indigenous Misak people in Colombia protested outside the company’s annual meeting in Dublin yesterday.

“I have travelled thousands of miles from my home to look the CEO of Smurfit Kappa in the eye and ask his company to stop destroying our ancestral lands,” said Pedro Josse Velasco Tumina, a leader of the protesting group.