Smurfit Westrock is optimistic that its third-quarter performance, along with its continuing asset optimisation measures, has laid a ‘strong foundation’ for further growth.
Smurfit Westrock reported net sales of $7.7 billion (€7.1 billion) in the third quarter of its financial year – an increase of approximately 163% from $2.9 billion (€2.8 billion) at the same time last year.
The company attributed this growth to the positive impact from acquisitions, including WestRock, and a net-positive volume impact driven by corrugated volumes.
However, these increases were partially offset by the net-negative impact of a lower selling price/mix of $30 million (€27.6 million) and a net-negative currency impact of $5 million (€4.6 million).
Tony Smurfit, president and CEO, commented, “Our established track record of delivering value to our customers through service, quality and innovation is already beginning to yield results.
“Equally, we believe our focus on plant-level autonomy, operational improvement and profitability will deliver in time – benefits at least equal to the stated synergy target of $400 million [€368.2 million].”
Quarterly Highlights
Net income in the quarter decreased by $379 million (€348.9 million), resulting in a net loss of $150 million (€138.1 million). Net-income margin fell to -2.0% from 7.8% in the third quarter of 2023, the company noted.
This decrease was primarily due to a $4.1 billion (€3.8 billion) increase in the cost of goods sold and a $657 million (€604.8 million) increase in selling, general and administrative (SG&A) expenses.
Adjusted EBITDA amounted to $1.3 billion (€1.2 billion), up from $525 million (€483.3 million) at the same time last year, with an adjusted EBITDA margin of 16.5% (18.0% in Q3 2023).
In the Europe, MEA and the APAC segment, adjusted EBITDA remained flat, at $411 million (€378.3 million), in the third quarter of 2024, primarily due to a $37 million (€34 million) positive impact from the acquisition of WestRock.
The adjusted EBITDA margin for the segment was 15.5%, compared to 18.8% in the third quarter of 2023.
‘Sustainable Packaging Partner Of Choice’
Smurfit added, “We are at the start of our journey to build the ‘go-to’ sustainable packaging partner of choice, a global leader with an unrivalled scale, geographic reach and product portfolio. Having spent the last number of months visiting our plants, it is also clear that our people are excited and motivated to be a part of this journey.
“We expect 2024 full-year combined adjusted EBITDA of approximately $4.7 billion [€4.3 billion], and we are increasingly excited by our immediate and longer-term prospects.”
Read More: Smurfit Westrock Reveals Key Growth Drivers In The Packaging Sector
