3rd Nov 2021 08:21
(Alliance News) - Smurfit Kappa Group PLC on Wednesday expressed confidence going forward as it reported double-digit earnings growth in the first nine months of 2021.
The Dublin-based packaging company said its revenue growth for the nine months to September 30 rose 15% year-on-year to EUR7.29 billion.
Earnings before interest, tax, depreciation and amortization growth for the nine months increased 10% to EUR1.24 billion, with a margin of 17%. For the third quarter of 2021 alone, Ebitda growth year-on-year was 16% year-on-year to EUR454 million.
Smurfit Kappa noted that higher input costs, principally from recovered fibre and energy, were offset by corrugated price increases.
"Our integrated paper and corrugated system is effectively sold out, and I am very proud of our people who are ensuring that customers, for the most part, are supplied securely and efficiently despite many supply chain disruptions," said Chief Executive Tony Smurfit.
To meet growing customer demand, the company said it has approved EUR600 million in projects in the first nine months of 2021. In the corrugated business, Smurfit Kappa has approved 48 new converting machines and six new corrugators across Europe and the Americas.
In addition, the company has also approved two paper projects in Germany and Mexico, ensuring future security of supply to over 65,000 customers.
"This continued investment will ensure that Smurfit Kappa remains best placed to satisfy our customers' needs with the most innovative and sustainable packaging solutions," said Tony Smurfit.
"We expect to deliver significant Ebitda growth for the full year in line with current market expectations. With the many growth opportunities and the significant ongoing investment in our business, we are excited about our future prospects," added Tony Smurfit.
FTSE 100-listed Smurfit Kappa shares were trading marginally higher in London on Wednesday morning at 3,867.00 pence each.
By Evelina Grecenko; [email protected]
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