11.02.16
Smurfit Kappa Group plc announced results for the three months and none months ending Sept. 30, 2016. Third quarter Group revenue growth on a constant currency basis was 6%, with volume growth of 3%. Third quarter EBITDA growth of 6% year-on-year with a margin of 15.7% and sequential EPS growth. Third quarter free cash flow of €164 million supporting further deleveraging to 2.4 times. The company is on track to deliver record full year EBITDA
“We are pleased to deliver good earnings growth for the quarter and the year to date,” said Tony Smurfit, Group CEO. “SKG continues to meet and exceed its ROCE target and has delivered improved EBITDA margins. This strong result reflects the high quality of our globally diversified operating platform, performance led culture, and the strength of our people and assets.
“In the third quarter, the Group delivered a strong 6% increase in revenue on a constant currency basis. The reported EBITDA for the quarter increased 6% year-on-year to €323 million,” he added. “This performance was delivered against a backdrop of significantly higher than expected recovered fiber input costs and adverse currency movements.
“The Group’s global corrugated packaging volumes grew by 5% in the year to date and 3% during the quarter. SKG continues to prioritize our value and differentiation proposition to our global customers, driving disciplined growth. In Europe, corrugated box volumes are 2% greater than 2015,” Smurfit noted. “Our Americas business continues to progress with improved performance across most operations, offset by negative currency impacts in the quarter. The Americas provides the Group with valuable diversification of its end market exposure, with access to higher growth and higher margin markets.
“Today, the Group is well positioned and invested in all its chosen markets,” Smurfit concluded. “The strength of our cash flow will enable us to continue to invest to support profitable growth while sustaining an attractive dividend stream for our shareholders. We continue to invest to further improve the quality of our asset base, and we will make acquisitions where we identify compelling long-term value for our shareholders while continuing to maintain our balance sheet strength. Based on current operating conditions, the Group will deliver continued earnings growth and record EBITDA for 2016 in line with market expectations.”
“We are pleased to deliver good earnings growth for the quarter and the year to date,” said Tony Smurfit, Group CEO. “SKG continues to meet and exceed its ROCE target and has delivered improved EBITDA margins. This strong result reflects the high quality of our globally diversified operating platform, performance led culture, and the strength of our people and assets.
“In the third quarter, the Group delivered a strong 6% increase in revenue on a constant currency basis. The reported EBITDA for the quarter increased 6% year-on-year to €323 million,” he added. “This performance was delivered against a backdrop of significantly higher than expected recovered fiber input costs and adverse currency movements.
“The Group’s global corrugated packaging volumes grew by 5% in the year to date and 3% during the quarter. SKG continues to prioritize our value and differentiation proposition to our global customers, driving disciplined growth. In Europe, corrugated box volumes are 2% greater than 2015,” Smurfit noted. “Our Americas business continues to progress with improved performance across most operations, offset by negative currency impacts in the quarter. The Americas provides the Group with valuable diversification of its end market exposure, with access to higher growth and higher margin markets.
“Today, the Group is well positioned and invested in all its chosen markets,” Smurfit concluded. “The strength of our cash flow will enable us to continue to invest to support profitable growth while sustaining an attractive dividend stream for our shareholders. We continue to invest to further improve the quality of our asset base, and we will make acquisitions where we identify compelling long-term value for our shareholders while continuing to maintain our balance sheet strength. Based on current operating conditions, the Group will deliver continued earnings growth and record EBITDA for 2016 in line with market expectations.”