Packaging giant Smurfit Kappa Group has reported a 15% increase in revenue in the first nine months of its financial year, to €7.29 billion.
EBITDA for the period to 30 September was up 10% to €1.235 billon, with EBITDA margin of 17%.
'Strong Growth' In Nine-Month Period
Commenting on the group's performance, chief executive Tony Smurfit said, “I am pleased to report a strong first nine months for the group, with corrugated growth of 9% in Europe and 11% in the Americas versus 2020.
"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."
Smurfit added that "materially higher input costs" in the business are being recovered through corrugated price increases.
Investment Projects
To meet growing demand, Smurfit Kappa said that in the first nine months of the year it approved around €600 million in projects across the group, including 48 new converting machines and six new corrugators across Europe and the Americas.
In early October, it completed the acquisition of a containerboard mill in Northern Italy, while it also recently approved two major paper products in Germany and Mexico.
"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 Smurfit.
Following on from a strong first half, the group added that its third-quarter EBITDA was up 16% to €454 million. It has also issued €1 billion in bonds under its Green Finance Framework strategy.
© 2021 European Supermarket Magazine. Article by Stephen Wynne-Jones. For more Packaging news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.
