Packaging firm Smurfit Kappa reported market share growth in the first half of the year in many countries in which it has a presence, despite seeing a 6% decline in volumes.
Tony Smurfit, group chief executive, described the company's performance as "strong" and "an excellent outcome against a challenging macro backdrop".
"In a declining volume environment, this reflects both the quality and resilience of Smurfit Kappa Group’s integrated and geographically balanced business model," he added.
First-Half Highlights
Smurfit Kappa saw revenue decline by 9% year-on-year in the first half, to €5.8 billion, from €6.4 billion in the year-ago period.
The company's operating profit before exceptional items fell by 7%, to €779 million, from €839 million last year.
EBITDA for the period amounted to €1.1 billion, down 5% year-on-year, from €1.2 billion in the first half of 2022.
Measures implemented by Smurfit Kappa, such as expanding its geographic reach and product portfolio, focusing on customer-led innovation and promoting the natural sustainable advantages of products, have positioned the company for long-term growth.
In addition, the company said that its integrated model will help customers benefit from security of supply even in challenging market conditions.
'Encouraging Signs'
Smurfit added, "While the global macro backdrop continues to be uncertain, there are some encouraging signs of improvement and we are confident about our prospects. Smurfit Kappa has never been in better shape strategically, operationally and financially.
"Reflecting the continued confidence in the quality of our business and our prospects, the board has approved a 6% increase in the interim dividend."
In July 2023, the packing giant said it expects the opening of its first North African plant in Morocco, to set the stage for further expansion in a fast growing region for consumer goods.
