Smurfit Kappa Says Third Quarter Performance Ahead Of Expectations
Smurfit Kappa Group has said that its third quarter performance is ahead of its expectations in its latest trading update for the nine months to 30 September 2020.
The packaging giant said that it has delivered a strong set of results for the first nine months, with an EBITDA of €1,125 million and an EBITDA margin of 17.8%, during the period.
The company noted that its third quarter EBITDA of €390 million was particularly pleasing, both from an operational and financial perspective.
It said that business today is "strongly weighted" towards FMCG customers.
"While some uncertainty still exists around the evolution of the effects of COVID-19 in the weeks ahead, absent a dramatic change to working practices, the group expects to deliver EBITDA in the range of €1,460 million to €1,480 million for the full year 2020," Tony Smurfit, Group CEO, commented.
“We are increasingly excited by our future prospects and the structural growth drivers of our business including e-commerce and sustainable packaging as well as our innovative ability to capitalise on these opportunities," he added.
Reflecting the Board’s confidence in SKG’s performance and prospects, the company said that is recommending a second interim dividend of 27.9 cent per share.
"This second interim dividend, following the payment of an interim dividend in September, ensures the Group is aligned with the dividend payment cycles of previous years," Smurfit said.
It said that is proposed to pay this dividend on 11 December 2020 to all ordinary shareholders on the share register at the close of business on 20 November 2020.
To recognise its workers' response to the pandemic, Smurfit Kappa said it will award all permanent staff with a "unique recognition reward" in the fourth quarter.
In the trading update the company said that it has taken the decision to repay any specific government support schemes related to the COVID-19 pandemic.
© 2020 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click sign-up to subscribe to Checkout.