SKG First Half 2023 Results
Smurfit Kappa Group plc (‘SKG’ or ‘the Group’) today announced results for the 6 months ending 30 June 2023.
Key Points:
- Revenue of €5.8 billion
- EBITDA of €1.1 billion and an EBITDA margin of 19.1%
- Return on capital employed of 19.0%
- Free Cash Flow of €119 million
- Interim dividend increased by 6% to 33.5 cent per share
Tony Smurfit, Group CEO, commented:
“We are pleased to deliver an excellent outcome against a challenging macro backdrop with a strong first half performance. In a declining volume environment this reflects both the quality and resilience of SKG’s integrated and geographically balanced business model. Although volumes declined by 6% in the first half, we saw market share gains across many of the countries in which we operate, and encouragingly, in Europe, during the second quarter, we saw our shipments per day improve on the previous three quarters.
“The steps we have taken and continue to take, have positioned SKG for long-term growth. These include expanding our geographic reach and product portfolio, our unrelenting focus on customer-led innovation and promoting our product’s natural sustainable advantage to advance new growth opportunities. Additionally, through our integrated model, customers benefit from security of supply even in the most challenging market conditions.
“As a result, SKG is the packaging partner of choice for the world’s leading companies. Our team continues to excel in supplying market-leading, innovative and sustainable packaging best reflected, within the period, by market share gains across many of the countries in which we operate. The significant number of design, innovation and sustainability awards received over the years are recognition of our customer focus and continues to demonstrate the quality and expertise of our people and the value they provide.
“In March, the Group announced that it had sold its Russian operations to local management, completing its exit from the Russian market. On a more positive note, in July of this year we expanded our geographic reach with the opening of our new integrated, state-of-the-art plant in Morocco and the acquisition of a specialty packaging operation in Spain.
“Our 16th Sustainable Development Report emphasises the Group’s progress and commitment to our 2030 targets. The Group continues to invest in sustainability, minimising both our own and our customers’ environmental impact and supporting the circular economy.
“With net debt to EBITDA at 1.4x, no significant debt maturities until 2026 and our most recent Green Bond issuance having achieved coupons of 0.50% and 1.0% for terms of 8 and 12 years respectively, our balance sheet continues to provide long-term strategic and financial flexibility.
“While the global macro backdrop continues to be uncertain, there are some encouraging signs of improvement and we are confident about our future prospects. Smurfit Kappa has never been in better shape strategically, operationally and financially. Reflecting the continued confidence in the quality of our business and our prospects, the Board has approved a 6% increase in the interim dividend.”
Half Year 2023 Results Webcast
The Group’s senior management team will today host a webcast for analysts and institutional investors at 09.00 BST (04.00 EDT)
To access the webcast, please register via the link below and select 'Attend' to add your details.
Forward Looking Statements
This Announcement contains certain statements that are forward-looking. Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations of the Group about future events, and involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Although the Group believes that current expectations and assumptions with respect to these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to be correct. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by the forward-looking statements. Forward-looking statements should therefore be construed in the light of such factors. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made. Other than in accordance with legal or regulatory obligations, the Group is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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