Smurfit Kappa Reports Revenue Growth Of 6% In Q1
Smurfit Kappa has posted a revenue growth of 6% in the first quarter of this year.
The group said that EBITDA for the period was €278 million, with a margin of 13%. On a days adjusted basis, the revenue growth for the period was 3.7%.
Tony Smurfit, Group CEO, commented: "We are pleased to report that SKG has again delivered a strong set of results. The Group reported good revenue growth of 6%, or 3.7% on a days adjusted basis, and EBITDA of €278 million versus the same period last year. These results, against a backdrop of significant recovered fibre cost inflation of approximately €30 million year-on-year, reflect the continued strength of our business. We expect improved margins as paper price increases translate into higher box prices."
The group said that containerboard price increases have 'provided the backdrop for necessary box price increases which will be progressively implemented during 2017'.
The packaging company also delivered an improved free cash flow year-on-year, despite its first quarter of the year being a 'softer' one.
“We are also pleased to report that our cash flow and debt ratios improved in what is traditionally a softer quarter." He said.
The group outlined that its containerboard price increases in both Europe and the Americas is 'implemented and ongoing'.
Smurfit added, “The geographic spread of our business, the integrated model which we operate, the strongest suite of business applications in our industry, and, most importantly, the tremendously talented people that work in SKG, give us great confidence for our future."
© 2017 - Checkout Magazine by Donna Ahern