(Alliance News) - Smurfit Kappa Group PLC on Wednesday said its third quarter performance was ahead of its expectations, with revenue year-to-date not far from the prior year.
Shares in Smurfit were up 2.5% at 3,172.00 pence in London in morning trading.
The FTSE 100-listed paper-based packaging firm reported revenue of EUR6.61 billion for the nine months ended September 30, down 3.5% from EUR6.85 billion the year before.
Smurfit also reported earnings before interest, tax, depreciation, and amortisation of EUR1.13 billion, a 10% drop from EUR1.26 billion for the same period of 2019 but flat versus 2018's Ebitda figure.
The EUR1.13 billion figure for 2020 includes a third quarter Ebitda of EUR390 million, which Smurfit said was "particularly pleasing"
The Ebitda margin for the nine months was 17.8%, a decline from 18.3% the prior year.
Chief Executive Tony Smurfit said: "I am pleased to report that the quality of our business and the strength of our people has produced an excellent performance in both the third quarter and the year-to-date."
He added that "absent a dramatic change to working practices" the company expects to deliver Ebitda in the range of EUR1.46 billion to EUR1.48 billion for 2020 as a whole, down from EUR1.65 billion in 2019.
The CEO also commented on the company's outlook and second interim dividend payment.
Tony Smurfit said: "We are increasingly excited by our future prospects and the structural growth drivers of our business including e‑commerce and sustainable packaging as well as our innovative ability to capitalise on these opportunities. Reflecting the board's confidence in SKG's performance and prospects, it is recommending a second interim dividend of 27.9 cent per share. This second interim dividend, following the payment of an interim dividend in September, ensures the group is aligned with the dividend payment cycles of previous years."
The firm has opted to repay any specific government support schemes relating to Covid-19, though this is "not material".
By Anna Farley; annafarley@alliancenews.com
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Smurfit Kappa (SKG)