Smurfit Kappa reports 'very strong' first quarter

2nd May 2024 07:14

(Sharecast News) - Smurfit Kappa Group reported robust first-quarter revenue of €2.7bn in an update on Thursday, alongside EBITDA of €487m, making for an EBITDA margin of 18.0%.

The FTSE 100 company said that in line with expectations, it experienced continued growth in corrugated box volumes during the period.

It also successfully completed a bond offering totaling $2.75bn.

The board said the integration planning for the firm's merger with WestRock was meanwhile progressing smoothly.

"Smurfit Kappa Group has delivered a very strong first quarter," said group chief executive Tony Smurfit.

"These results reflect the continuing benefits of our multi-year capital plans and the dedication and commitment of our people, providing the most sustainable and innovative packaging solutions for our customers.

"Box demand has continued to improve with volume growth in Europe and the Americas of approximately 3% and 2% respectively."

Smurfit noted that the group recently announced the closure of a triple tranche bond offering, comprising $750m notes due 2030, $1bn due 2034 and $1bn due 2054, at coupons of 5.200%, 5.438% and 5.777% respectively.

"Our integration planning with WestRock is progressing well and as expected. We remain on-track to complete the transaction in early July.

"SKG has once again delivered.

"Due to our investment program in recent years and set against an improving industry backdrop with long-term positive structural trends, our combination with WestRock creates a global leader in innovative and sustainable packaging with a very exciting future for all stakeholders."

At 0806 BST, shares in Smurfit Kappa Group were up 3.51% at 3,596p.

Reporting by Josh White for Sharecast.com.