Smurfit Kappa Reports 'Strong Performance' In First Half
Smurfit Kappa has reported a strong performance against key metrics, in its first half results.
The packaging giant delivered earnings before interest, taxes, depreciation, and amortization (EBITDA) of €735 million, with an EBITDA margin of 17.5%, for the six months ending 30 June 2020.
"The strength and scale of our integrated system and our supply chain expertise meant we were able to ensure the continuity of supply of essential products for everyday life across multiple sectors," said Tony Smurfit, Group CEO.
"We are again proving that our business model, geographic diversity and our commitment to innovation and sustainability continue to deliver," he added.
The company said that its European business performed strongly in the first six months, with an EBITDA margin of 17.6% and flat corrugated box volumes.
The EBITDA margin of the Americas business improved again year-on-year, from 17.1% to 19.0%, it added.
Smurfit said that during the first six months, the group completed its largest ever investment, €134 million, in a recovery boiler in Austria.
"I am happy to report that this will reduce our CO2 emissions by 40,000 tonnes or a further 1.5% towards the Group’s sustainability emissions target," he added.
In April, in light of the macro uncertainty due to the COVID-19 pandemic, Smurfit Kappa said in a trading update that it had withdrawn its previously proposed final dividend of 80.9 cent per share for 2020.
"We stated at that time that the Board remained committed to providing shareholders with an attractive dividend stream," Smurfit stated.
"Consequently, the Board has now decided to pay an interim dividend of 80.9 cent per share, the equivalent amount of the withdrawn final dividend," he added.
© 2020 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click sign-up to subscribe to Checkout.