HomeBussinessSmurfit Kappa reports earnings of €487m in first three months of 2024

Smurfit Kappa reports earnings of €487m in first three months of 2024


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Smurfit Kappa is led by CEO Tony Smurfit. Photo: Simon Dawson/Bloomberg

Smurfit Kappa saw revenues and profits decline in the first three months of the year but pointed to an improvement in demand for boxes.

The paper packaging giant reported earnings before interest, taxation, depreciation and amortisation (Ebitda) of €487m in the first quarter, down from €579m reported by the company last year.

In a trading update today, the group also reported an Ebitda margins of 18pc for the period.

Smurfit Kappa also generated revenues of €2.7bn in the three months to the end of March. This was also down from the €2.995bn reported in the corresponding period in 2023.

Corrugated box volumes rose in the period. Volumes were up 3pc in Europe and increased 2pc in the Americas region, Smurfit Kappa reported.

In September, Smurfit Kappa and US paper and packaging rival WestRock announced plans to merge. The transaction is expected to close in the second quarter of 2024 subject to shareholder and regulatory approvals.

“Our integration planning with WestRock is progressing well and as expected. We remain on-track to complete the transaction in early July,” group chief executive Tony Smurfit said.

“Due to our investment program in recent years and set against an improving industry backdrop with long-term positive structural trends, our combination with WestRock creates a global leader in innovative and sustainable packaging with a very exciting future for all stakeholders,” he added.

Smurfit Kappa reported earnings of €2.08bn last year, down 12pc from 2022. Total revenue also fell by 12pc to €11.3bn in 2023, according to annual results published by the company earlier this year.

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