Smurfit Kappa volumes returned to growth in fourth quarter

WestRock Co

07/02/2024 07:45

DUBLIN, Feb 7 (Reuters) - Europe's largest paper
packaging producer Smurfit Kappa  SKG.I  said on Wednesday that
its volumes increased in the fourth quarter, snapping three
successive quarterly declines that led to a 12% drop in
full-year core profit, as expected. 
    Earnings before interest, tax, depreciation and amortisation
(EBITDA) of 2.08 billion euros ($2.24 billion) were broadly in
line with the approximate 2.05 billion the group forecast in
November. That was still its second-largest profit ever and
sharply higher than 1.7 billion euro recorded in 2021.
    The Irish group, which hopes to close an $11 billion deal to
buy U.S. rival WestRock  WRK.N  in early July and create the
world's biggest paper and packaging group, said volumes were
flat year-on-year in Europe and up by 1.6% in the Americas.
    The growth overall in the fourth quarter compared to
declines of minus 7%, minus 5% and minus 2% in the first, second
and third quarters, respectively as customers destocked and
demand for durable goods weakened.
    CEO Tony Smurfit told CNBC on Wednesday that the trend of
improving demand had continued in January and early February.

($1 = 0.9288 euros)

 (Reporting by Padraic Halpin; Editing by Christian
Schmollinger)
 ((padraic.halpin@thomsonreuters.com; +353 1 500 1504; Reuters
Messaging: padraic.halpin.thomsonreuters.com@reuters.net))