Paper-packaging group Smurfit Kappa has posted a 4% increase in revenue in the third quarter of the year, reaching €2,121 million.
The company says that it continues to show strong progress, with corrugated packaging volume growth in Europe (+4%) and the Americas (+3%)
However, operating profit fell by 2% to €216 million, due to increased costs.
“In the third quarter, recovered fibre cost pressures remained, resulting in a headwind of almost €40 million for the quarter and €111 million for the year-to-date compared to 2016," said Tony Smurfit, group CEO.
"Smurfit Kappa Group will continue to offset these cost pressures through further corrugated price recovery and ongoing efficiency improvements as we progress towards the year-end and into 2018."
Smurfit Kappa is continuing to expand its global packaging footprint, and confirmed the recent acquisition of a corrugated plant in Moscow, and a display and corrugated business in Greece.
Looking forward, the group says that it is committed to further expansion, and creating long-term value for shareholders.
“The exceptional volatility in global recovered fibre trade flows continues to present some short-term uncertainty," added Smurfit.
"The group has shown sequential progress within that context, and remains on track to continue corrugated price recovery. We expect to deliver a full year EBITDA in line with current market expectations and will enter 2018 with optimism and good momentum.”
© 2017 - Checkout Magazine by Sarah Harford