Q1 revenues up but profit slips for Smurfit Kappa
Corrugated giant Smurfit Kappa has reported growth in sales for the first three months of the year.
In first quarter results published this morning (3 May), the group reported that revenues for the period rose by 4% year-on-year to €1.89bn, while EBITDA profit slipped 2% to €241m.
Pre-tax profits, meanwhile, fell to €57m compared to €102m in the first quarter of 2012. Exceptional charges of €13m, related to the devaluation of the Venezuelan Bolivar, were included in this year’s figures while an exceptional gain of €28m was included last year.
Chief executive Gary McGann said: “The Group is pleased to report year-on-year revenue growth of 4% in the first quarter. Despite a number of one-off costs, EBITDA for the first quarter remained strong at €241m.
“SKG’s performance reflects the previously guided margin compression in Europe following OCC and recycled paper price increases which are not yet reflected in corrugated pricing.
“A €40 per tonne recycled paper price increase in Europe during the quarter supports corrugated pricing. Input costs including OCC continue to move upwards. Paper price increases and a good inventory position across Europe are creating an environment for corrugated price recovery in the second half of 2013.
“The performance of SKOC and the progress of its integration into the Group has exceeded our original expectations. We have doubled our synergy expectations from US$14m to US$28m.”
