Smurfit Kappa Group has posted group revenue growth of 6% in the first quarter of its financial year, in the three months to 31 March.
The group said that EBITDA for the period was €278 million, with a margin of 13%. On a days adjusted basis, the revenue growth for the period was 3.7%.
"These results, against a backdrop of significant recovered fibre cost inflation of approximately €30 million year-on-year, reflect the continued strength of our business," said Tony Smurfit, Smurfit Kappa group chief executive. "We expect improved margins as paper price increases translate into higher box prices."
The group said that containerboard price increases have 'provided the backdrop for necessary box price increases which will be progressively implemented during 2017'.
Cash Flow
Smurfit Kappa's cash flow and debt ratios 'improved' in the period, despite Q1 traditionally being quite a 'soft' quarter for the group.
“The geographic spread of our business, the integrated model which we operate, the strongest suite of business applications in our industry, and, most importantly, the tremendously talented people that work in SKG, give us great confidence for our future," said Smurfit.
“While there are always political and economic risks, and individual markets invariably have challenges from time to time, we are increasingly well positioned to capitalise on a positive pricing environment in 2017.”
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
