Profits up at Smurfit Kappa

Finance | Wed 8 Feb | Author – Business & Finance
Tony Smurfit
Tony Smurfit, Group CEO, Smurfit Kappa

The producer of paper-based packaging today announced results for the three months and 12 months ending December 2016.

Full year 2016 revenues on a constant currency basis are up 5%, while the 2016 EBITDA of €1.236bn is a new record for the Group.

The company was admitted to the London’s FTSE 100 index in December and has continued good cash generation with free cash flow of €303m reported.

“These strong results against most performance metrics were delivered despite the significant headwinds experienced by the Group in higher raw material input costs and adverse currency impacts,” said Group CEO and recent Business & Finance Business Person of the Month Tony Smurfit. “In 2016 we have invested approximately €500m in our business, building a platform to deliver continued performance and growth.”

He continued: “In 2017 we will continue to realise the benefits of our average annual capital spend of more than €450m over the last three years. In January 2017 we issued a seven-year, €500m bond enabling the Group to extend the maturity profile of our debt to 4.3 years and secure, at 2.375%, our lowest ever coupon for the Group.

“From a demand perspective, the year has started well across most areas of our business and, while recently announced paper price increases should translate with the customary time lag into higher box prices, we look forward to 2017 and beyond. Reflecting the distinct strengths and capabilities of our business, the board is recommending a 20% increase in the final dividend to 57.6 cent per share.”