Smurfit Kappa Sees Market Share Growth Amid Falling Volumes In First Half
Despite experiencing a 6% decline in volumes, packaging firm Smurfit Kappa achieved market share growth across numerous countries where it operates during the first half of the year.
Tony Smurfit, the group’s Chief Executive, characterized the company’s performance as robust and noted that it stands as an excellent outcome considering the challenging macroeconomic conditions.
Smurfit emphasized that the positive results underscore the resilience and quality of Smurfit Kappa Group’s geographically balanced and integrated business model in an environment of volume reduction.
Key Highlights from the First Half:
During the first half of the year, Smurfit Kappa witnessed a 9% year-on-year reduction in revenue, amounting to €5.8 billion, in contrast to €6.4 billion in the same period the previous year. Operating profit before exceptional items also declined by 7% to €779 million from €839 million in the prior year.
EBITDA for the period totaled €1.1 billion, signifying a 5% decrease from the first half of 2022 when it was €1.2 billion.
The company’s strategic measures, including the expansion of its geographical reach and product portfolio, prioritizing customer-led innovation, and highlighting the inherent sustainable advantages of its products, have positioned Smurfit Kappa for sustained growth.
Furthermore, the integrated model adopted by the company provides customers with secure supply even during challenging market conditions.
Despite the ongoing global macro uncertainties, Smurfit expressed optimism, noting some promising signs of improvement. He asserted the company’s confidence in its prospects, underscoring its strategic, operational, and financial preparedness.
Reflecting this confidence and the quality of the business, the company’s board has approved a 6% increase in the interim dividend.
Additionally, in July 2023, Smurfit Kappa announced the forthcoming opening of its inaugural North African plant in Morocco, setting the stage for further expansion in a rapidly growing region for consumer goods.