(Alliance News) -Â Smurfit Kappa Group PLC on Wednesday reported annual profit growth despite battling cost inflation in 2021.
Revenue for 2021 amounted to EUR10.11 billion, up 18% from EUR8.53 billion the year before. Pretax profit jumped 22% to EUR913 million from EUR748 million.
"I am happy to report that Smurfit Kappa has delivered another excellent performance in 2021. This was particularly pleasing as the year was characterised by unprecedented cost inflation," said Chief Executive Tony Smurfit.
Earnings before interest, tax, depreciation and amortisation increased 13% to EUR1.70 billion from EUR1.51 billion, even as the Ebitda margin weakened to 16.8% from 17.7%.
"The result reflects our ability to recover significant input cost pressure by way of progressive box price increases, strong box volumes, the resilience and security of supply delivered by our integrated mode," the Dublin-based packaging company said.
Smurfit Kappa said containerboard pricing in Europe and the Americas moved higher throughout 2021, initially driven by recovered fibre prices and then by surging energy costs. Increasing recovered fibre prices cost the group an additional EUR440 million in 2021 versus the prior year while rising energy prices cost an additional EUR235 million.
While costs remain at elevated levels, the firm expects to recover these in the year ahead.
"As we begin the year, current trading is strong and our integrated paper and packaging system remains effectively sold out. We continue to see significant opportunities across our geographic footprint and as such, we are investing to build a platform for durable growth to meet customer demand," said Smurfit.
The company raised its final dividend by 10% to 96.1 cents.
Shares in Smurfit Kappa were up 2.4% at 4,048.00 pence in London on Wednesday.
By Lucy Heming;Â lucyheming@alliancenews.com
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Smurfit Kappa (SKG)