Smurfit Kappa Posts 4% Revenue Increase In Q3
Paper-packaging group Smurfit Kappa has reported revenue of €2,121 million in the third quarter of the year, representing a 4% increase on the same period in 2016.
The company says that it continues to show strong progress, with corrugated-packaging volume growth in Europe (+4%) and the Americas (+3%), however, the group's operating profit fell by 2%, to €216 million, while EBITDA dropped by 1%, to €320 million, as a result of rising costs.
“In the third quarter, recovered-fibre cost pressures remained, resulting in a headwind of almost €40 million for the quarter and €111 million for the year to date, compared to 2016," said Tony Smurfit, group CEO.
"Smurfit Kappa Group will continue to offset these cost pressures through further corrugated price recovery and ongoing efficiency improvements as we progress towards the year end and into 2018," Smurfit continued.
Smurfit Kappa has continued to expand its packaging footprint with the recent acquisition of a corrugated plant in Moscow, and a display and corrugated business in Greece.
Looking forward, the company says that it is committed to further expansion and creating long-term value for shareholders.
“The exceptional volatility in global recovered-fibre trade flows continues to present some short-term uncertainty," added Smurfit.
"The group has shown sequential progress within that context, and remains on track to continue corrugated price recovery. We expect to deliver a full-year EBITDA in line with current market expectations and will enter 2018 with optimism and good momentum,” he said.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.