SMURFIT KAPPA: Trading Statement
November 02 2022 - 3:00AM
UK Regulatory
TIDMSKG TIDMSK3
Smurfit Kappa Group plc ('SKG', 'Smurfit Kappa' or 'the Group')
today announced a trading update for the 9 months to 30 September
2022.
First Nine Months Overview:
YTD YTD
EURm 2022 2021 Change
Revenue EUR 9,724 EUR 7,287 33 %
EBITDA EUR 1,767 EUR 1,235 43 %
EBITDA Margin 18.2 % 17.0 %
Operating Profit before Exceptional
Items EUR 1,258 EUR 772 63 %
Profit before Income Tax EUR 1,141 EUR 645 77 %
Basic EPS (cent) 333.4 177.8 88 %
Pre-exceptional Basic EPS (cent) 333.4 188.4 77 %
Free Cash Flow EUR 309 EUR 297 4 %
Return on Capital Employed 20.6 % 15.6 %
Net Debt EUR 3,028 EUR 2,589 17 %
Net Debt to EBITDA (LTM) 1.4x 1.6x
Key points:
-- Revenue growth of 33% to EUR9,724 million
-- EBITDA growth of 43% to EUR1,767 million with an EBITDA margin of 18.2%
-- Net Debt to EBITDA ratio below 1.4x
-- ROCE of 20.6%
-- Ongoing capital investment to support customers and to optimise SKG's
system
Tony Smurfit, Group CEO, commented:
"SKG has delivered a very strong performance in the first nine
months with revenue growth of 33%, EBITDA of EUR1,767 million and
an EBITDA margin of 18.2%. We continue to drive improvement across
all areas of our business, consistent with the delivery of our
strategy, providing the most innovative and sustainable packaging
through our integrated business model, ensuring security of supply
to our over 65,000 customers.
"Significant cost inflation is being recovered in corrugated box
pricing as anticipated. Against strong comparisons, corrugated box
volumes were flat for the first nine months.
"The investments we have made over the last number of years are
making the Group ever more efficient with a customer-led focus on
quality, innovation and sustainability. With SKG's scale and
geographic reach across 36 countries, together with the many
specialist businesses within the Group, there remain many
opportunities for growth.
"Our results reflect the steps we have taken and the quality of
the Smurfit Kappa business. We expect to deliver EBITDA of
approximately EUR2.3 billion for the full year 2022."
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 EUR10.1 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 LinkedI, Twitter, Facebook, YouTube.
smurfitkappa.com
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 E: smurfitkappa@fticonsulting.com
View source version on businesswire.com:
https://www.businesswire.com/news/home/20221102005263/en/
CONTACT:
Smurfit Kappa Group PLC
SOURCE: Smurfit Kappa Group PLC
Copyright Business Wire 2022
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