REG-Smurfit Kappa Group PLC Trading Statement

Smurfit KappaAnnouncement

29/04/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220429:nBw9ZBxCQa&default-theme=true


Trading Statement

 

Smurfit Kappa Group plc (‘SKG’, 'Smurfit Kappa' or ‘the Group’) today
announced a trading update for the 3 months to 31 March 2022.

First Quarter Overview:


 * Revenue growth of 33% to €3,024 million

 * EBITDA growth of 33% to €514 million 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 €514 million 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.”

Performance Overview

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 our
existing operations in the country.

On 1 April, we announced our decision to exit the Russian market. As a
response to the war in Ukraine, the Group and our people have made significant
contributions to aid agencies to support relief efforts in the region.

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.

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 48,000
employees in over 350 production sites across 36 countries and with revenue of
€10.1 billion in 2021. 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 of 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
have the greatest impact.

Follow us on LinkedIn
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.linkedin.com%2Fcompany%2F6858%2F&esheet=52701341&newsitemid=20220428006251&lan=en-US&anchor=LinkedIn&index=1&md5=5736122917dacb121c90dddd35c271eb)
Twitter
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Ftwitter.com%2Fsmurfitkappa&esheet=52701341&newsitemid=20220428006251&lan=en-US&anchor=Twitter&index=2&md5=53724d964807aaeefa4e0913ab468ebb)
Facebook
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.facebook.com%2FSmurfit-Kappa-143215165750328%2F&esheet=52701341&newsitemid=20220428006251&lan=en-US&anchor=Facebook&index=3&md5=3e1865acd4835f1f7289f298fe5fa030)
YouTube
(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.youtube.com%2Fuser%2FSmurfitKappaGroup&esheet=52701341&newsitemid=20220428006251&lan=en-US&anchor=YouTube&index=4&md5=99feb9885c6d468b2366e20b334fa75b)

smurfitkappa.com
(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.smurfitkappa.com&esheet=52701341&newsitemid=20220428006251&lan=en-US&anchor=smurfitkappa.com&index=5&md5=545987a49efb2eab70c2d2e682f313fd)

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)   


 



View source version on businesswire.com:
https://www.businesswire.com/news/home/20220428006251/en/
(https://www.businesswire.com/news/home/20220428006251/en/)

Smurfit Kappa Group PLC


Copyright Business Wire 2022