Smurfit Kappa Announced Trading Update for First 9 Months This Year

SEATTLE (Scrap Monster): Smurfit Kappa Group plc. - Europe’s leading corrugated packaging company announced trading update for the initial nine-month period of the current year.

The company reported EBITDA of €1,625 million during this period, with EBITDA margin at 19%. As per trading update, the return on capital employed (ROCE) stood at 18%.The high ROCE corresponds to the successful outcomes from its capital plans and the excellence in operations by various units across the globe. Smurfit Kappa reported net debt to EBITDA ratio of 1.4x.

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On the operational side, the company announced transaction to combine with West Rock, thus leading to creation of global leader in sustainable fiber-based packaging. The announcement regarding the agreement was made on 12^th September.

Tony Smurfit, Group CEO commented that the results demonstrate the effectiveness of the company’s multi-year capital plan, expansion of its geographic footprint and the ongoing dedicated service of its employees.

The Q3 box demand was down by nearly 2% upon comparison with 2022 levels. This is an improvement when matched with negative growth of 7% and 5% recorded in Q1 and Q2 respectively. The rising trend in demand is expected to continue, especially with improved order books seen in Germany.