SMURFIT KAPPA: Trading Statement
April 28 2023 - 1:00AM
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
2023.
2023 First Quarter | Key Financial Performance
Measures
Q1 Q1
EURm 2023 2022 Change
Revenue EUR2,995 EUR3,024 (1%)
EBITDA EUR579 EUR514 13%
EBITDA Margin 19.3% 17.0%
Operating Profit before Exceptional Items EUR412 EUR352 17%
Profit before Income Tax EUR339 EUR317 7%
Basic EPS (cent) 93.8 89.2 5%
Pre-exceptional Basic EPS (cent) 106.7 89.2 20%
Free Cash Flow EUR48 (EUR49) 198%
Return on Capital Employed 21.6% 16.8%
Net Debt EUR2,938 EUR2,995 (2%)
Net Debt to EBITDA (LTM) 1.2x 1.6x
First Quarter Overview:
-- EBITDA growth of 13% to EUR579 million with an EBITDA margin of 19.3%
-- ROCE of 21.6%
-- Net Debt to EBITDA ratio of 1.2x
-- Finalised exit from Russian business
Tony Smurfit, Group CEO, commented:
"Smurfit Kappa is reporting another strong performance for the
first quarter with EBITDA of EUR579 million, an EBITDA margin of
19.3%, a ROCE of 21.6% and a net debt to EBITDA of 1.2x. This
performance reflects the continuing benefits of our integrated
model, the effectiveness of our capital spend, our constant focus
on innovation for customers and our geographic footprint.
"Together with the commitment and dedication of our people and
our performance-led culture, these attributes have enabled us to
continue to deliver in an environment where volumes were lower than
the previous year.
"As anticipated, first quarter demand was broadly in line with
the fourth quarter of 2022. We expect the demand environment to
improve as the year progresses and SKG is well placed across our
geographies to take advantage of this.
"As stated at our full year results, Smurfit Kappa has never
been better positioned to continue to develop and take advantage of
opportunities as they present themselves either through organic
investments or acquisitions."
About Smurfit Kappa
Smurfit Kappa, a FTSE 100 company, is one of the leading
providers of paper-based packaging solutions in the world, with
more than 47,000 employees in over 350 production sites across 35
countries and with revenue of EUR12.8 billion in 2022. We are
located in 22 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.
Follow us on LinkedIn, Twitter, Facebook, YouTube.
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
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CONTACT:
Smurfit Kappa Group PLC
SOURCE: Smurfit Kappa Group PLC
Copyright Business Wire 2023
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