Smurfit Kappa shares rise on quarterly earnings improvement (updated)
02/05/2024 08:33
(Recasts on share price rise)
DUBLIN, May 2 (Reuters) - Smurfit Kappa SKG.I shares
rose in early trade on Thursday after its first quarter core
profit fell sharply year-on-year but was higher than the final
quarter of 2023 when it had signalled a dip in demand for
packaging was at an end.
Smurfit, Europe's largest paper packaging producer, posted a
16% year-on-year fall in core profit to 487 million euros ($522
million) but was 7% higher than the final three months of 2023.
Its shares were 3% higher at 0825.
Smurfit also reported volume growth of 3% in Europe and 2%
in the Americas and chief executive Tony Smurfit told an analyst
call that the pricing environment was improving with customers
informed of increases coming in May and June.
The Irish group's margin on earnings before interest, taxes,
depreciation, and amortization (EBITDA) stood at 18% compared
with 16.6% in the previous quarter and 19.3% a year ago.
Smurfit said it remained on track to complete its $11
billion acquisition of U.S. rival WestRock WRK.N in early
July.
($1 = 0.9327 euros)
(Reporting by Padraic Halpin; editing by Jason Neely and Tomasz
Janowski)
((padraic.halpin@thomsonreuters.com; +353 1 500 1504; Reuters
Messaging: padraic.halpin.thomsonreuters.com@reuters.net))