Smurfit Kappa plc announced a trading update for the 3 months ending 31 March 2019.
Performance Review
Smurfit Kappa has delivered a very strong first quarter performance with EBITDA up 25% year-on-year to €424 million. The improved result reflects higher corrugated pricing, demand growth, a relentless focus on cost efficiencies and the benefits of our capital programme.
In Europe, SKG’s first quarter organic corrugated volume growth was 2% year-on-year, against a strong 2018 comparison, with corrugated pricing in line with expectations. In the Americas, organic volume growth was 3% year-on-year with especially pleasing performances in our three largest countries: Colombia, Mexico and the US.
During the quarter, the Group completed acquisitions in Bulgaria and Serbia, further expanding its geographic reach.
The Group continues to progress its industry leading Better Planet Packaging initiative, working with brand owners, retailers and designers to develop the most sustainable, biodegradable and innovative packaging solutions for our customers. SKG will shortly host its biennial innovation event which will be attended by over 350 global customers. Better Planet Packaging will be the cornerstone of that event.
Tony Smurfit, Group CEO, commented: “The Group has had an excellent start to the year building on our established strengths of customer-focused innovation, our integrated operating model, and our ever expanding geographic reach.
“While there is invariably political and economic risk, we confidently expect to deliver another year of progress.”
First Quarter Overview
- Revenue growth of 7% to €2,316 million
- EBITDA growth of 25% to €424 million
- EBITDA margin of 18.3%
For the full financial reports of Q1 2019, please click here.