Irish paper and packaging firm Smurfit Kappa is one of two companies to enter the prestigious FTSE 100 index, it was confirmed today.
The group, led by CEO Tony Smurfit, is quoted in Dublin and London and will enter the index at the start of trading on December 19th. It accompanies fellow newcomer ConvaTec in stepping up, while building supplies company Travis Perkins and metals producer Polymetal International have been demoted.
The news is a further boost to Tony Smurfit, who took over the helm from Gary McGann late last year. Smurfit was named Business & Finance‘s Business Person of the Month for January, while Smurfit Kappa was Company of the Month in May on the back of impressive growth and year-on-year earnings.
The company joins incumbent Irish companies CRH, Shire, DCC and Paddy Power Betfair on the index.
Last month it announced a further round of impressive results, with revenue, EBITDA, EPS and ROCE all recording growth.
“We are pleased to deliver good earnings growth for the quarter and the year to date,” explained Tony Smurfit. “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. This performance was delivered against a backdrop of significantly higher than expected recovered fibre input costs and adverse currency movements.”
Global corrugated packaging volumes grew by 5% in the year to date and 3% during the quarter, said Smurfit, with the group continuing to prioritise its value and differentiation proposition to global customers, driving disciplined growth.
“In Europe, corrugated box volumes are 2% greater than 2015. 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,” said Tony Smurfit.