SMURFIT Kappa has recorded a 9% drop in revenue for the first half of the year.
The packaging giant’s half-year results show revenue has dipped to €5,847m from €6,385m during the same period last year. Pre-tax profit is down 14% from €769m to €659.
EBITDA is €1.1 billion with an EBITDA margin of 19.1%. Smurfit Kappa has reported free cash flow of €119 million.
The interim dividend increased by 6% to 33.5 cent per share, while net debt is down from €3,309 last year to €3,175.
Group CEO Tony Smurfit said, “We are pleased to deliver an excellent outcome against a challenging macro backdrop with a strong first half performance. In a declining volume environment this reflects both the quality and resilience of SKG’s integrated and geographically balanced business model.
“Although volumes declined by 6% in the first half, we saw market share gains across many of the countries in which we operate, and encouragingly, in Europe, during the second quarter, we saw our shipments per day improve on the previous three quarters.
“The steps we have taken and continue to take, have positioned SKG for long-term growth. These include expanding our geographic reach and product portfolio, our unrelenting focus on customer-led innovation and promoting our product’s natural sustainable advantage to advance new growth opportunities. Additionally, through our integrated model, customers benefit from security of supply even in the most challenging market conditions.
“As a result, SKG is the packaging partner of choice for the world’s leading companies. Our team continues to excel in supplying market-leading, innovative and sustainable packaging best reflected, within the period, by market share gains across many of the countries in which we operate. The significant number of design, innovation and sustainability awards received over the years are recognition of our customer focus and continues to demonstrate the quality and expertise of our people and the value they provide.
“In March, the group announced that it had sold its Russian operations to local management, completing its exit from the Russian market. On a more positive note, in July of this year we expanded our geographic reach with the opening of our new integrated, state-of-the-art plant in Morocco and the acquisition of a specialty packaging operation in Spain.
“Our 16th Sustainable Development Report emphasises the group’s progress and commitment to our 2030 targets. The Group continues to invest in sustainability, minimising both our own and our customers’ environmental impact and supporting the circular economy.
“With net debt to EBITDA at 1.4x, no significant debt maturities until 2026 and our most recent Green Bond issuance having achieved coupons of 0.50% and 1.0% for terms of eight and 12 years respectively, our balance sheet continues to provide long-term strategic and financial flexibility.
“While the global macro backdrop continues to be uncertain, there are some encouraging signs of improvement and we are confident about our future 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.”
