Smurfit Kappa Sees Operating Profit Up 7% In Full Year
Packaging firm Smurfit Kappa has posted a 7% increase in operating profit (EBITDA) in its 2019 financial year, to €1.65 billion, with an increased margin of 18.2%.
Revenue at the business was up 1% for the period, to €9.05 billion.
"Our vision is to be a globally admired company, dynamically delivering secure and superior returns for all stakeholders," commented chief executive Tony Smurfit. "Our recent performance shows progress towards the realisation of our vision.
“Across 35 countries, we continue to create market leading innovative solutions for over 65,000 customers, delivering sustainable and optimised paper-based packaging. The 2019 outcome also reflects our performance culture, which has, at its core, an unrelenting customer focus."
It was a year that saw Smurfit Kappa increase its geographic reach with acquisitions in Bulgaria and Serbia. As well as build on its acquisition of Reparenco, which was completed in 2018.
"These acquisitions significantly enhance our business and further expand our geographic reach," said Smurfit.
"As with previous mergers and acquisitions, the new teams have integrated well and further strengthen the depth and quality of the group."
On a regional level, Smurfit Kappa said that its European business delivered an EBITDA margin of 19.0%, with strong performances noted in Iberia and Eastern Europe.
In its Americas region, it saw an EBITDA margin of 17.5%, up from 15.7% the previous year, with good performances in Mexico, the US and Colombia; the latter being 'particularly strong' according to the group.
The group said that following its positive performance, it would be increasing its final dividend to shareholders by 12%, to 80.9 cent per share.
“From a demand perspective, the year has started well and, while macro and economic risks remain, we expect another year of strong free cash flow and consistent progress against our strategic objectives," Smurfit added.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine