SMURFIT KAPPA: Trading Statement
29 April 2022 - 4:00PM
UK Regulatory
TIDMSKG TIDMSK3
Smurfit Kappa Group plc ('SKG', 'Smurfit Kappa' or 'the Group')
today announced a trading update for the 3 months to 31 March
2022.
First Quarter Overview:
-- Revenue growth of 33% to EUR3,024 million
-- EBITDA growth of 33% to EUR514 million with an EBITDA margin of 17%
-- Corrugated box growth of 3.6%
-- Significant, ongoing capital investment to support customer growth and
security of supply
-- Sets a strong foundation for 2022
Tony Smurfit, Group CEO, commented:
"I am pleased to report that we continue to deliver for our
customers and against all performance measures. During the first
quarter revenue grew by 33% on the first quarter of 2021, with
EBITDA of EUR514 million and an EBITDA margin of 17%.
"This performance demonstrates the continuing benefits of SKG's
integrated and resilient operating model, our geographic diversity
and recent acquisitions. It also reflects the significant
investment SKG has made, and continues to make, to support our
customers' growth. Our ability to provide security of supply to
customers and deliver market-leading, innovative and sustainable
packaging solutions is a clear differentiator for SKG.
"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. Our integrated and resilient business model has
ensured security of supply in this increasingly complex
environment. I am deeply proud of how our people have responded and
are delivering for customers in these exceptional times."
Performance Overview
Corrugated box growth in the first quarter was 3.6% for the
Group. Box growth was approximately 3% and 6% for the European and
Americas regions respectively. Our paper and corrugated operations
performed well during the quarter across all regions. Additionally,
we have seen strong recovery and growth in our speciality business
areas.
The Group recently completed the acquisition of Argencraft, a
corrugated facility located in Buenos Aires, Argentina. The
acquisition complements our existing operations in the country.
On 1 April, we announced our decision to exit the Russian
market. As a response to the war in Ukraine, the Group and our
people have made significant contributions to aid agencies to
support relief efforts in the region.
As we enter the second quarter, demand continues to be good with
progressive corrugated price recovery. Cost increases and supply
constraints remain a feature of our business which is being dealt
with through the dedication of our people and through active price
recovery. We remain confident in the future prospects of our
business and our first quarter performance, together with our
ongoing investment program, sets a strong foundation for 2022 and
beyond.
About Smurfit Kappa
Smurfit Kappa, a FTSE 100 company, is one of the leading
providers of paper-based packaging solutions in the world, with
approximately 48,000 employees in over 350 production sites across
36 countries and with revenue of EUR10.1 billion in 2021. We are
located in 23 countries in Europe, and 13 in the Americas. We are
the only large-scale pan-regional player in Latin America. Our
products, which are 100% renewable and produced sustainably,
improve the environmental footprint of our customers.
With our proactive team, we relentlessly use our extensive
experience and expertise, supported by our scale, to open up
opportunities for our customers. We collaborate with
forward-thinking customers by sharing superior product knowledge,
market understanding and insights in packaging trends to ensure
business success in their markets. We have an unrivalled portfolio
of paper-based packaging solutions, which is constantly updated
with our market-leading innovations. This is enhanced through the
benefits of our integration, with optimal paper design, logistics,
timeliness of service, and our packaging plants sourcing most of
their raw materials from our own paper mills.
We have a proud tradition of supporting social, environmental
and community initiatives in the countries where we operate.
Through these projects we support the UN Sustainable Development
Goals, focusing on where we believe we have the greatest
impact.
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smurfitkappa.com
Forward Looking Statements
This Announcement contains certain statements that are
forward-looking. Forward-looking statements are prospective in
nature and are not based on historical facts, but rather on current
expectations of the Group about future events, and involve risks
and uncertainties because they relate to events and depend on
circumstances that will occur in the future. Although the Group
believes that current expectations and assumptions with respect to
these forward-looking statements are reasonable, it can give no
assurance that these expectations will prove to be correct. There
are a number of factors that could cause actual results and
developments to differ materially from those expressed or implied
by the forward-looking statements. Forward-looking statements
should therefore be construed in the light of such factors. You are
cautioned not to place undue reliance on any forward-looking
statements, which speak only as of the date made. Other than in
accordance with legal or regulatory obligations, the Group is not
under any obligation, and expressly disclaims any intention or
obligation, to update or revise any forward-looking statement,
whether as a result of new information, future events or otherwise.
The forward-looking statements in this document do not constitute
reports or statements published in compliance with any of
Regulations 6 to 8 of the Transparency (Directive 2004/109/EC)
Regulations 2007.
Contacts
Ciarán Potts Melanie Farrell
Smurfit Kappa FTI Consulting
T: +353 1 202 71 27 T: +353 86 401 5250
E: ir@smurfitkappa.com E: smurfitkappa@fticonsulting.com
View source version on businesswire.com:
https://www.businesswire.com/news/home/20220428006251/en/
CONTACT:
Smurfit Kappa Group PLC
SOURCE: Smurfit Kappa Group PLC
Copyright Business Wire 2022
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