Smurfit Kappa has released a trading update for the three months to 31 March 2022.
- Revenue growth of 33% to €3,024m
- EBITDA growth of 33% to €514m with an EBITDA margin of 17%
- Corrugated box growth of 3.6%
- Significant, ongoing capital investment to support customer growth and security of supply
- Sets a strong foundation for 2022
Tony Smurfit, Group CEO, commented, “I am pleased to report that we continue to deliver for our customers and against all performance measures. During the first quarter revenue grew by 33% on the first quarter of 2021, with EBITDA of €514m and an EBITDA margin of 17%. This performance demonstrates the continuing benefits of SKG’s integrated and resilient operating model, our geographic diversity and recent acquisitions. It also reflects the significant investment SKG has made, and continues to make, to support our customers’ growth. Our ability to provide security of supply to customers and deliver market-leading, innovative and sustainable packaging solutions is a clear differentiator for SKG.
“The first quarter presented a number of significant operational challenges. Practically all input costs have risen sharply and already tight markets and supply chains have been exacerbated by the war in Ukraine. Our integrated and resilient business model has ensured security of supply in this increasingly complex environment. I am deeply proud of how our people have responded and are delivering for customers in these exceptional times.”
He added, “Corrugated box growth in the first quarter was 3.6% for the Group. Box growth was approximately 3% and 6% for the European and Americas regions respectively. Our paper and corrugated operations performed well during the quarter across all regions. Additionally, we have seen strong recovery and growth in our speciality business areas.”
The Group recently completed the acquisition of Argencraft, a corrugated facility located in Buenos Aires, Argentina. The acquisition complements existing operations in the country.
On 1 April, the company announced its decision to exit the Russian market. As a response to the war in Ukraine, the Group and its people have made significant contributions to aid agencies to support relief efforts in the region.
Tony Smurfit concludes, “As we enter the second quarter, demand continues to be good with progressive corrugated price recovery. Cost increases and supply constraints remain a feature of our business which is being dealt with through the dedication of our people and through active price recovery. We remain confident in the future prospects of our business and our first quarter performance, together with our ongoing investment program, sets a strong foundation for 2022 and beyond.”