A year filled with mergers and acquisitions has seen revenues increase by 4% for Smurfit Kappa Group (SKG) in the first half of 2019, as the group praised its resilient business model.
During the first half, the SKG completed acquisitions in Serbia and Bulgaria, a further step in its South Eastern European strategy.
It said that the integration of these assets into the business is progressing well.
The group reported a record EBITDA increase of 17%, rising to €847 million in the first half of the year.
Resilient Business Model
In Europe, the group’s EBITDA increased by €101 million, or 17%, to €688 million, benefitting from previous capital investment and higher corrugated prices.
In the Americas, EBITDA increased 14% on the same period last year to €179 million. SKG said that 85% of the region’s earnings were delivered by Colombia, Mexico, and the US, with strong year-on-year performances in all three countries.
“We continue to work with our existing customer base, and indeed our new customers, in solving their many business challenges,” CEO Tony Smurfit said.
“This includes finding alternatives to less sustainable packaging, helping drive increased sales using paper-based packaging as a merchandising medium, and reducing complexity and costs in their supply chain by leveraging our unique SMART applications.”
Smurfit said that the group focused on completing a number of projects which were outlined in its four-year, Medium-Term Plan, which included the group's corrugated and containerboard business, as well as mergers and acquisitions.
“Our plan remains flexible and agile and is the foundation for our current and future performance,” Smurfit continued.
“While macro-economic and political risks remain, SKG continues to be highly confident of another year of progress and delivery.”
© 2019 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click sign-up to subscribe to Checkout.