11.02.17
Smurfit Kappa Group plc announced results for the three months and nine months ending Sept. 30, 2017.
Group revenue showed growth of 4% for the third quarter and year-to-date, with increased sequential EBITDA margin of 15.1%. The company reported solid free cash flow delivery of €152 million for the quarter.
“SKG continues to deliver, showing strong sequential progress with Group EBITDA margin at 15.1% for the quarter,” said Tony Smurfit, Group CEO. “Total Group corrugated volumes grew 3% for the quarter. Corrugated volumes in Europe improved by 4% on a days-adjusted basis with strong demand in most areas of activity. In the Americas, demand growth was 3% with growth in most markets.
“Reported third quarter EBITDA in Europe was up 3% year-on-year against a backdrop of increased recovered fiber costs of €26 million, with sequential margins expanding to 15.3%,” Smurfit noted. “In the Americas, EBITDA decreased 8% year-on-year primarily as a result of increased input costs and currency headwinds. The region is strongly pursuing input cost recovery, which has contributed to improved sequential EBITDA margins at 15.4%.
“We continue to expand our geographic reach through the acquisition of a corrugated plant in central Moscow,” said Smurfit. “This acquisition establishes SKG as the largest international corrugated packaging producer in Russia. In October, we agreed to purchase a high-end display and corrugated business in Greece, which provides us with a platform for future expansion in the region. SKG remains a disciplined acquirer and is committed to growth through acquisition where it creates long-term value for our shareholders and enhances the overall quality of our business. The Group’s net debt to EBITDA ratio continues to improve and now stands at 2.3x.”
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Group revenue showed growth of 4% for the third quarter and year-to-date, with increased sequential EBITDA margin of 15.1%. The company reported solid free cash flow delivery of €152 million for the quarter.
“SKG continues to deliver, showing strong sequential progress with Group EBITDA margin at 15.1% for the quarter,” said Tony Smurfit, Group CEO. “Total Group corrugated volumes grew 3% for the quarter. Corrugated volumes in Europe improved by 4% on a days-adjusted basis with strong demand in most areas of activity. In the Americas, demand growth was 3% with growth in most markets.
“Reported third quarter EBITDA in Europe was up 3% year-on-year against a backdrop of increased recovered fiber costs of €26 million, with sequential margins expanding to 15.3%,” Smurfit noted. “In the Americas, EBITDA decreased 8% year-on-year primarily as a result of increased input costs and currency headwinds. The region is strongly pursuing input cost recovery, which has contributed to improved sequential EBITDA margins at 15.4%.
“We continue to expand our geographic reach through the acquisition of a corrugated plant in central Moscow,” said Smurfit. “This acquisition establishes SKG as the largest international corrugated packaging producer in Russia. In October, we agreed to purchase a high-end display and corrugated business in Greece, which provides us with a platform for future expansion in the region. SKG remains a disciplined acquirer and is committed to growth through acquisition where it creates long-term value for our shareholders and enhances the overall quality of our business. The Group’s net debt to EBITDA ratio continues to improve and now stands at 2.3x.”
Image via Shutterstock