Smurfit Kappa Reports 15% Revenue Increase In First Nine Months
Smurfit Kappa has posted a 15% revenue increase year-on-year to €7,287 million, its latest financial results show.
According to the packaging firms first nine months 2021 trading update, it recorded earnings before interest, taxes, depreciation, and amortisation (EBITDA) growth year-on-year of 10% to €1.235 billion.
The group reported corrugated packaging growth of 9% in Europe and 11% in the Americas during the period, compared to the same time last year.
"Our integrated paper and corrugated system is effectively sold out and I am very proud of our people who are ensuring that customers, for the most part, are supplied securely and efficiently despite many supply chain disruptions," commented Tony Smurfit, Group CEO.
"Materially higher input costs, principally, but not limited to, recovered fibre and energy are being progressively recovered through corrugated price increases," he said.
Smurfit noted that in order to meet growing customer demand, in the first nine months of the year, the company approved approximately €600 million in projects across the group.
In its corrugated business, Smurfit Kappa approved 48 new converting machines and six new corrugators across Europe and the Americas.
"I am delighted to report that we completed the acquisition of the Verzuolo mill in early October bringing 600,000 tonnes of paper into our integrated system," Smurfit said.
The company said that this continued investment will ensure that Smurfit Kappa remains best placed to satisfy its customers’ needs with the most innovative and sustainable packaging solutions.
“Reflecting our continuing focus on sustainability was the recent launch of our Green Finance Framework and issuance of green bonds of €500 million with a coupon of 0.5%, and €500 million with a coupon of 1.0%, with 8 and 12 year maturities respectively," Smurfit highlighted.
"Setting up this framework is a further significant step in our sustainability strategy, embedding sustainability into our capital structure alongside our sustainability linked Revolving Credit Facility," he added.
Looking ahead, the company said that it expects to deliver significant EBITDA growth for the full year in line with current market expectations.
"With the many growth opportunities and the significant ongoing investment in our business, we are excited about our future prospects,” Smurfit concluded.