Smurfit Kappa's core profit jumped by 50% year-on-year in the first half of 2022, which it said reflected recent capital investment in its production facilities and price increases for customers.
After a year of record profit in 2021, revenue growth of 33% pushed earnings before interest, taxes, depreciation, and amortisation (EBITDA) at Europe's largest paper packaging producer up to €1.2 billion in the first half.
Revenue rose by 36% in the half-year period, to €6.83 billion.
Smurfit Kappa, whose customers include Procter & Gamble, Unilever and Nestlé increased its interim dividend by 8% to €31.6 per share.
"In Smurfit Kappa, we are very confident about our future prospects," the Irish group's chief executive Tony Smurfit said in a statement, adding that the group had "overcome many challenges" in the first half, including higher input costs, logistics and supply chain constraints, and COVID-19 disruptions.
"Inevitably, with the current global issues that surround us there are greater uncertainties than we have seen for some time. Nevertheless, we continue to see many opportunities for growth in the sustainable and innovative packaging solutions that we offer customers and the unique footprint of the businesses we operate."
He added that the company's first half performance "has set a strong foundation for the remainder of 2022 and beyond".
The group recently announced an upgrade of Nuevo Laredo sheet plant in Mexico, as well as completing an €11.5 million project at its Zülpich paper mill in Germany.
News by Reuters, edited by by ESM – your source for the latest packaging news. Click subscribe to sign up to ESM: European Supermarket Magazine.