29th Jul 2020 09:55
(Alliance News) - Packaging firm Smurfit Kappa Group PLC on Wednesday said resumed dividend payments and hailed its "strong" interim performance, despite posting an earnings fall.
In the six months to June 30, revenue fell 9.1% to EUR4.20 billion from EUR4.62 billion in the year prior.
"This result reflects the negative impact of Covid-19 on demand, the adverse impact of currency, and the fall in box prices," the Dublin-based company.
Pretax profit fell 16% to EUR383 million from EUR456 million.
"We are very pleased to report another strong performance across all our key metrics for the first half of 2020," Chief Executive Officer Tony Smurfit said.
The FTSE 100 proposed an interim dividend of 80.9 cents per share, more than double the 27.9 cents it paid a year ago and equal to the final 2019 dividend it had pulled due to the virus crisis.
"In April, in light of the macro uncertainty due to the Covid-19 pandemic, the board acted prudently in withdrawing its recommendation to pay a final dividend of 80.9 cent per share," CEO Smurfit said.
"The board has now decided to pay an interim dividend of 80.9 cent per share, the equivalent amount of the withdrawn final dividend. This decision underscores the board's belief in the inherent strengths of the SKG business, its balance sheet, free cash flow generation and its long-term prospects."
Shares in the company were 5.7% higher at 2,624.00 pence each in London on Wednesday morning.
By Eric Cunha; [email protected]
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