Packaging firm Smurfit Kappa has posted revenue growth of 4% in the first half of its financial year, boosted by recent acquisitions in Bulgaria, Colombia and Serbia.
The company posted revenue of €4.622 billion for the period, with EBITDA up 17% to €847 million. EBITDA margin was 18.3%, compared to 16.4% for the corresponding period last year.
'Resilient Model'
“I am pleased to report, for the first half of 2019, another set of excellent results," commented Tony Smurfit, the company's chief executive. "Revenue grew by 4% with EBITDA increasing to €847 million, up 17% on the prior year. The continued execution of our Medium-Term Plan together with our resilient business model allows us to continue to progress and deliver consistently excellent performance."
Smurfit Kappa said that its European business 'performed strongly' in the period, delivering an EBTIDA margin of 19.3%, up from 17.3% in the same period in 2018. Box volumes in Europe were up by 2% on an organic basis, or by 4% if acquisitions are included.
The Americas region also 'continued to perform well', the company said, with EBITDA margin of 17.1% up from 15.2% in the first half of 2018.
Business Challenges
“We continue to work with our existing customer base, and indeed our new customers, in solving their many business challenges," commented Smurfit. "This includes finding alternatives to less sustainable packaging, helping drive increased sales using paper-based packaging as a merchandising medium, and reducing complexity and costs in their supply chain by leveraging our unique SMART applications."
He added that the company recently hosted 350 customers from around the globe in the Netherlands, to examine the sustainability challenges facing the packaging industry.
"The event highlighted both the sustainability challenges we all face and how Smurfit Kappa’s expertise is part of the solution. We expect our Better Planet Packaging initiative to be a source of future incremental demand," Smurfit said.
Looking ahead to the full year, Smurfit Kappa said that while macro-economic and political risks remain, the firm remains 'highly confident' of a strong full-year performance.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
