Smurfit Kappa has released its full year results. They recorded sales of €9,048m (2018: €8,946m) and generated an operating profit of €1,062m (2018: €1,105m).
Tony Smurfit, Group CEO, commented, “2019 represents another period of strong delivery and performance for SKG. EBITDA was €1,650m, a 7% increase on 2018 with an increased EBITDA margin of 18.2%. 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.
“During the year, we continued to strengthen our integrated model, following the acquisition of Reparenco in 2018 and our more recent acquisitions in France, Bulgaria and Serbia. These acquisitions significantly enhance our business and further expand our geographic reach. As with previous mergers and acquisitions, the new teams have integrated well and further strengthen the depth and quality of the Group.
“Our European business continued to perform strongly, delivering an EBITDA margin of 19.0%. Demand growth was ahead of the market and in line with our expectations for the year with particularly good performances in Iberia and Eastern Europe.
“The Americas region continued to perform well, delivering an increased EBITDA margin of 17.5% up from 15.7% in 2018. Our three main countries of Colombia, Mexico and the US had strong financial performances with demand in Colombia particularly strong.
“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.”