Smurfit Kappa packs a punch with third quarter update
Packaging company Smurfit Kappa Group (SKG) today announced 11 per cent growth for 2019 so far, with the Dublin-based company’s earnings growing to €1.26bn (£1.09bn).
SKG returned revenue of €6.8bn in the nine-month period ended 30 September, three per cent above the same period last year.
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The FTSE 100 company’s sustainable packaging products appear to have captured the European market amid the increasing demand for eco-friendly solutions.
Tony Smurfit, group chief executive, said: “While there have been, and continue to be, obvious macro-economic and political challenges, SKG’s very strong performance against this backdrop shows, once again, the quality of our business and the benefits of our geographic diversity.
“Consumers are increasingly demanding sustainable packaging solutions and with our unique applications, knowledge and expertise in paper-based packaging we are ideally positioned to take advantage of this mega trend.”
Building on the €400 million add-on to the June 2018 bond in January of this year, SKG issued an 8-year, €750 million bond in September at a coupon of 1.5%.
In Europe, SKG’s corrugated box volume growth was close to four per cent year-on-year or approximately two per cent on an organic basis, with pricing was in line with expectations.
In the Americas, organic volume growth was approximately two per cent.
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SKG is one of the world’s largest providers of paper-based packaging solutions, employing 46,000 employees across 35 countries.
Last year the Venezuelan government seized control of SKG’s Carton de Venezuela operations, causing the company major losses.
Shares in SKG were up nearly two per cent this afternoon, at 2588p.
Main image credit: Getty