(Alliance News) - Packaging firm Smurfit Kappa Group PLC on Wednesday reported "another excellent" set of interim results, with Europe and the Americas doing well.
Revenue for the six months to June has risen 4% to EUR4.62 billion, with pretax profit rising 9% to EUR456 million.
Smurfit's earnings before interest, tax, depreciation, and amortisation climbed 17% to EUR847 million, with the Ebitda margin improving to 18.3% from 16.4%. This was ahead of Irish broker Davy's forecast of EUR837 million, a prediction which was in line with consensus.
Smurfit increased its interim dividend by 10% to 27.9 euro cents.
Chief Executive Tony Smurfit said it was an "excellent" period the for the company, despite macroeconomic and political risks, and the firm is "highly confident" of another year of progress.
Europe had a good half, Smurfit said, with Ebitda up 17% and organic box volumes rising 2%. Americas Ebitda rose 14%, with Colombia, Mexico, and the US posting "strong" year-on-year improvements.
The price of recovered fibre in the European business was 9% lower year-on-year in the first half, with testliner and kraftliner down by EUR120 per tonne and EUR140 per tonne respectively from the high of October 2018.
"In February 2018, we outlined our four year medium-term plan. We have completed a number of projects across our corrugated and containerboard business since its announcement," said CEO Smurfit.
"With the acquisition of Reparenco in July 2018, we accelerated a central part of the plan linked to our integrated model and secured our paper supply for future growth opportunities. Our plan remains flexible and agile and is the foundation for our current and future performance," he continued.
"The qualities of Smurfit Kappa continue to be evident, not alone in terms of our performance but in our world class containerboard system, leadership in sustainable packaging, customer-focused innovation and disciplined, returns focused, capital allocation."
Shares were 2.6% higher on Wednesday morning in London at 2,674.00 pence each.
Smurfit Kappa (SKG)