Smurfit Kappa's revenue and core profit both rose by 33% year on year in the first quarter, which the boxmaker attributed to significant investment to support growing demand and ensure security of supply.
Europe's largest paper packaging producer said demand remains strong in the second quarter after corrugated box volumes grew 3.6% in the first three months of the year and that it is increasing prices progressively.
The Irish group raised prices by 19% in 2021 and had flagged further increases this year to recover input costs that it said on Friday had risen sharply in practically all areas, with existing supply chain problems exacerbated by the conflict in Ukraine.
Friday's trading update did not disclose the extent of its price increases in the first quarter.
'Resilient Business Model'
"Our integrated and resilient business model has ensured security of supply in this increasingly complex environment," chief executive Tony Smurfit said in a statement.
“The first quarter presented a number of significant operational challenges. Practically all input costs have risen sharply and already tight markets and supply chains have been exacerbated by the war in Ukraine," he added.
Smurfit said in February that customers were more concerned about getting their hands on a sufficient amount of packaging than how much they were having to pay for it.
In early April, the company announced its decision to exit the Russian market in response to the war in Ukraine.
Read More: Smurfit Kappa Sees Revenue Up 18%, Says Costs Remain 'At Elevated Levels'
News by Reuters, additional reporting by ESM – your source for the latest packaging news. Click subscribe to sign up to ESM: European Supermarket Magazine.
