Packaging firm Smurfit Kappa has posted revenue growth of 4% in its full-year 2018, to €8.95 billion.
The business said that its EBITDA for the year was up 25% to €1.54 billion, with a group EBITDA margin of 17.3%.
“Our 2018 performance demonstrates the Group’s transformation of recent years, which is delivering progressively superior returns,” said Tony Smurfit, Smurfit Kappa chief executive.
“This creates the platform for success in 2019 and beyond. The Group delivered on or exceeded its key measures. This reflects our market-leading positions, our innovation capability and investment decisions.”
Regional Performance
The group’s European business posted underlying revenue growth of 7% in the year, which was boosted by a “combination of demand growth, input cost recovery and the benefits of our investment programme”, said Smurfit.
The period also saw the company make ‘significant’ acquisitions in France, the Netherlands and Serbia.
“These acquisitions are well positioned in their respective markets and offer great opportunities for future growth, adding three paper machines and four converting sites to the Group’s operational footprint,” said Smurfit.
In the Americas, underlying revenue growth was up 8%, the company said, with ‘strong’ performances in Mexico and Colombia.
Exiting Venezuela
The period did see the company discontinue its Venezuelan operations, in August 2018, however, “due to the continuing actions and interference of the Government of Venezuela,” Smurfit said.
“The Group has initiated international arbitration proceedings to protect the interests of its stakeholders and seek compensation from the Government of Venezuela for its unlawful actions.”
Looking ahead to the coming year, Smurfit said that the company is “well positioned to capitalise on industry opportunities”, as well as deliver an improved performance for its shareholders.
© 2019 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
