Smurfit Kappa Posts 7% Operating Profit Increase In Full Year
Smurfit Kappa Group (SKG) has posted a 7% increase in operating profit (EBITDA) in its 2019 financial year, to €1.65 billion, with an increased margin of 18.2%.
Revenue at the corrugated packaging company business was up 1% for the period, to €9.05 billion, according to the Smurfit Kappa full year 2019 results.
"Our vision is to be a globally admired company, dynamically delivering secure and superior returns for all stakeholders. Our recent performance shows progress towards the realisation of our vision," said Tony Smurfit, Group CEO.
“Across 35 countries, we continue to create market leading innovative solutions for over 65,000 customers, delivering sustainable and optimised paper-based packaging. The 2019 outcome also reflects our performance culture, which has, at its core, an unrelenting customer focus."
The packaging firm's European business continued to perform strongly, delivering an EBITDA margin of 19.0%.
“During the year, we continued to strengthen our integrated model, following the acquisition of Reparenco in 2018, and our more recent acquisitions in France, Bulgaria and Serbia," he added.
Smurfit highlighted that the acquisitions significantly enhanced the groups business and further expanded its geographic reach.
"As with previous mergers and acquisitions, the new teams have integrated well and further strengthen the depth and quality of the Group," he added.
“ Demand growth was ahead of the market and in line with our expectations for the year with particularly good performances in Iberia and Eastern Europe."
The Americas Business
The Americas region continued to perform well, delivering an increased EBITDA margin of 17.5% up from 15.7% in 2018, the results showed.
"Our three main countries of Colombia, Mexico and the US had strong financial performances with demand in Colombia particularly strong," Smurfit said.
“A central element of our continued success is the quality of our people."
Smurfit said that reflecting the Board’s confidence in the unique strengths of SKG and its prospects, the Board is recommending a 12% increase in the final dividend to 80.9 cent per share.
© 2020 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click subscribe to sign up for the Checkout print edition.