REG-Smurfit Kappa Group PLC Trading Statement

Smurfit KappaAnnouncement

28/04/2023 07:00

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Trading Statement

 

Smurfit Kappa Group plc (‘SKG’, 'Smurfit Kappa' or ‘the Group’) today
announced a trading update for the 3 months to 31 March 2023.
 2023 First Quarter | Key Financial Performance Measures                                  
                                                                                          
 €m                                                       Q1          Q1          Change  
                                                          
2023       
2022               
 Revenue                                                  €2,995      €3,024      (1%)    
 EBITDA                                                   €579        €514        13%     
 EBITDA Margin                                            19.3%       17.0%               
 Operating Profit before Exceptional Items                €412        €352        17%     
 Profit before Income Tax                                 €339        €317        7%      
 Basic EPS (cent)                                         93.8        89.2        5%      
 Pre-exceptional Basic EPS (cent)                         106.7       89.2        20%     
 Free Cash Flow                                           €48         (€49)       198%    
 Return on Capital Employed                               21.6%       16.8%               
                                                                                          
 Net Debt                                                 €2,938      €2,995      (2%)    
 Net Debt to EBITDA (LTM)                                 1.2x        1.6x                


First Quarter Overview:


 * EBITDA growth of 13% to €579 million with an EBITDA margin of 19.3%

 * ROCE of 21.6%

 * Net Debt to EBITDA ratio of 1.2x

 * Finalised exit from Russian business

Tony Smurfit, Group CEO, commented:

“Smurfit Kappa is reporting another strong performance for the first quarter
with EBITDA of €579 million, an EBITDA margin of 19.3%, a ROCE of 21.6% and
a net debt to EBITDA of 1.2x. This performance reflects the continuing
benefits of our integrated model, the effectiveness of our capital spend, our
constant focus on innovation for customers and our geographic footprint.

“Together with the commitment and dedication of our people and our
performance-led culture, these attributes have enabled us to continue to
deliver in an environment where volumes were lower than the previous year.

“As anticipated, first quarter demand was broadly in line with the fourth
quarter of 2022. We expect the demand environment to improve as the year
progresses and SKG is well placed across our geographies to take advantage of
this.

“As stated at our full year results, Smurfit Kappa has never been better
positioned to continue to develop and take advantage of opportunities as they
present themselves either through organic investments or acquisitions.”

About Smurfit Kappa

Smurfit Kappa, a FTSE 100 company, is one of the leading providers of
paper-based packaging solutions in the world, with more than 47,000 employees
in over 350 production sites across 35 countries and with revenue of €12.8
billion in 2022. We are located in 22 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.

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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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