8th Feb 2023 08:54
(Alliance News) - Smurfit Kappa Group PLC on Wednesday reported a rise in profit during 2022, but it noted high energy costs and inflation.
The Dublin-based packaging maker said pretax profit rose 42% to EUR1.29 billion in 2022 from EUR913 million in 2021. Revenue climbed 27% to EUR12.82 billion from EUR10.11 billion.
The company recommended a final dividend of 107.6 euro cents per share, up 12% from 96.1 cents a year prior.
However, Smurfit noted high costs driven by energy: "The year was characterised by unprecedented cost inflation, especially in energy, which moderated in the latter part of the year. As illustrated by our performance in 2022, SKG has successfully navigated this environment."
The company said that cost of sales in 2022 rose by 25% to EUR8.75 billion from EUR7.02 billion in 2021.
Despite the current market environment, Smurfit said 2023 has started well. It "has never been in better shape strategically, financially and operationally. We have put ourselves in a position with the steps that we have taken and continue to take, to deliver high-quality performance and to take advantage of the many opportunities we see around us."
Smurfit Kappa shares were 3.4% lower at 3,369.00 pence each in London on Wednesday morning, making it the worst FTSE 100 performer. The wider index was up 0.6%.
By Tom Budszus, Alliance News reporter
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