REG-Smurfit Kappa Group PLC Trading Statement

Smurfit KappaAnnouncement

03/11/2021 07:05

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Trading Statement

 

3 November: Smurfit Kappa Group plc (‘SKG’, 'Smurfit Kappa' or ‘the
Group’) today announced a trading update for the 9 months to 30 September
2021.

First Nine Months Overview:


 * Revenue growth year-on-year of 15% to €7,287 million

 * EBITDA growth year-on-year of 10% to €1,235 million with a margin of 17%

 * Third quarter EBITDA growth year-on-year of 16% to €454 million

 * Issued €1 billion in bonds under our Green Finance Framework

Tony Smurfit, Group CEO, commented:

“I am pleased to report a strong first nine months for the Group with
corrugated growth of 9% in Europe and 11% in the Americas versus 2020. Our
integrated paper and corrugated system is effectively sold out and I am very
proud of our people who are ensuring that customers, for the most part, are
supplied securely and efficiently despite many supply chain disruptions.
Materially higher input costs, principally, but not limited to, recovered
fibre and energy are being progressively recovered through corrugated price
increases.

“To meet growing customer demand, in the first nine months of the year, we
approved approximately €600 million in projects across the Group. In our
corrugated business, we have approved 48 new converting machines and six new
corrugators across Europe and the Americas. I am delighted to report that we
completed the acquisition of the Verzuolo mill in early October bringing
600,000 tonnes of paper into our integrated system. In addition, we also
approved two major paper projects in Germany and Mexico, ensuring future
security of supply to our over 65,000 customers. This continued investment
will ensure that Smurfit Kappa remains best placed to satisfy our customers’
needs with the most innovative and sustainable packaging solutions.

“Reflecting our continuing focus on sustainability was the recent launch of
our Green Finance Framework and issuance of green bonds of €500 million with
a coupon of 0.5% and €500 million with a coupon of 1.0%, with 8 and 12 year
maturities respectively. Setting up this framework is a further significant
step in our sustainability strategy, embedding sustainability into our capital
structure alongside our sustainability linked Revolving Credit Facility.

“SKG continues to deliver against all performance metrics with EBITDA for
the nine months of €1,235 million and a margin of 17%. This shows the
continuing strength of our integrated business model; the benefits of
geographic diversity; and the quality and dedication of the SKG team. We
expect to deliver significant EBITDA growth for the full year in line with
current market expectations. With the many growth opportunities and the
significant ongoing investment in our business, we are excited about our
future prospects.”

About Smurfit Kappa

Smurfit Kappa, a FTSE 100 company, is one of the leading providers of
paper-based packaging solutions in the world, with approximately 46,000
employees in over 350 production sites across 36 countries and with revenue of
€8.5 billion in 2020. We are located in 23 countries in Europe, and 13 in
the Americas. We are the only large-scale pan-regional player in Latin
America. Our products, which are 100% renewable and produced sustainably,
improve the environmental footprint of our customers.

With our proactive team, we relentlessly use our extensive experience and
expertise, supported by our scale, to open up opportunities for our customers.
We collaborate with forward-thinking customers by sharing superior product
knowledge, market understanding and insights in packaging trends to ensure
business success in their markets. We have an unrivalled portfolio of
paper-based packaging solutions, which is constantly updated with our
market-leading innovations. This is enhanced through the benefits of our
integration, with optimal paper design, logistics, timeliness of service, and
our packaging plants sourcing most of their raw materials from our own paper
mills.

We have a proud tradition supporting social, environmental and community
initiatives in the countries where we operate. Through these projects we
support the UN Sustainable Development Goals, focusing on where we believe we
can have the greatest impact.

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Forward Looking Statements

This Announcement contains certain statements that are forward-looking.
Forward-looking statements are prospective in nature and are not based on
historical facts, but rather on current expectations of the Group about future
events, and involve risks and uncertainties because they relate to events and
depend on circumstances that will occur in the future. Although the Group
believes that current expectations and assumptions with respect to these
forward-looking statements are reasonable, it can give no assurance that these
expectations will prove to be correct. There are a number of factors that
could cause actual results and developments to differ materially from those
expressed or implied by the forward-looking statements. Forward-looking
statements should therefore be construed in the light of such factors. You are
cautioned not to place undue reliance on any forward-looking statements, which
speak only as of the date made. Other than in accordance with legal or
regulatory obligations, the Group is not under any obligation, and expressly
disclaims any intention or obligation, to update or revise any forward-looking
statement, whether as a result of new information, future events or otherwise.
The forward-looking statements in this document do not constitute reports or
statements published in compliance with any of Regulations 6 to 8 of the
Transparency (Directive 2004/109/EC) Regulations 2007.
 Contacts                                                                                                                          
 Ciarán Potts                                          Melanie Farrell                                                             
 
                                                     
                                                                           
 Smurfit Kappa                                         FTI Consulting                                                              
 
                                                     
                                                                           
 T: +353 1 202 71 27                                   T: +353 86 401 5250                                                         
 
                                                     
                                                                           
 E: ir@smurfitkappa.com (mailto:ir@smurfitkappa.com)   E: smurfitkappa@fticonsulting.com (mailto:smurfitkappa@fticonsulting.com)   


 



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