11th Feb 2015 08:48
LONDON (Alliance News) - Ireland-based paper packaging manufacturer Smurfit Kappa Group PLC on Tuesday reported a rise in pretax profit in 2014 on the back of an uptick in revenue and hiked its final dividend in response to the performance.
The group reported a pretax profit of EUR378 million for the year to December 31, up from EUR294 million last year. Revenue for the year rose by 2% to EUR8.08 billion, up from EUR7.96 billion last year.
Smurfit hiked its final dividend on the news, increasing it to 40 euro cents per share from 30.75 euro cents the year before, raising its full-year dividend for 2014 to 55.375 euro cents, up from 41 euro cents in 2013.
The company said its corrugated volume growth in Europe hit 2% for the year, with end-pricing rising 1% and remaining generally stable at that level in spite of a more volatile pricing environment for recycled containerboard. The group added the implementation of price rises for its containerboard products in the third quarter provided support for overall prices for the year.
"The group?s solid operating performance through 2014 is strong evidence of the resilience of our integrated and geographically diverse business model," said Smurfit Chief Executive Gary McGann.
"As a result we are pleased to report higher returns and good earnings growth year-on-year in 2014, driven by new business wins, a continued focus on cost efficiencies, judicious capital investment and accretive acquisitions," he added.
The company also briefly said it has launched a EUR250 million euro-denominated senior notes issue. The notes are due 2025 and the proceeds will be used to reduce debt the company has taken on related for acquisitions.
London shares in Smurfit were down 0.8% to EUR22.32 on Wednesday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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