SKG First Half 2022 Results

Smurfit Kappa Group plc (‘SKG’ or ‘the Group’) today announced results for the 6 months ending 30 June 2022.

Key Points:

  • Revenue growth of 36% to €6,385 million
  • EBITDA growth of 50% to €1,174 million with an EBITDA margin of 18.4%
  • EPS growth of 85% to 221.9 cent
  • ROCE of 19.3%
  • Interim dividend increased by 8% to 31.6 cent per share

Performance Review and Outlook

Tony Smurfit, Group CEO, commented:

“I am pleased to report a strong first half performance with revenue growth of 36%, EBITDA of €1,174 million, an EBITDA margin of 18.4%, EPS growth of 85% and ROCE of 19.3%.

“Our strong performance is a result of the many actions we have taken over a number of years. These actions include significant customer-focused investments to meet growth, providing the most innovative and sustainable paper-based packaging in the marketplace and selective acquisitions ensuring security of supply to our customers.

“In the first half of 2022, we have overcome many challenges including sharply increasing input costs, logistics and supply chain constraints, COVID-19 disruption and the impact of the war in Ukraine. SKG's integrated model, our geographic diversity, our continued focus on efficiency through investment and our bespoke business applications, have enabled us to offset these challenges together with paper and corrugated price recovery.

“I am especially proud of the tremendous efforts of our people who continue to deliver for our customers under these circumstances. Our performance-led culture has allowed us to go from strength to strength, building on our leadership position in the markets in which we operate.

“Both our regions performed strongly during the first six months, with Europe reporting EBITDA of €926 million with an EBITDA margin of 18.7% and the Americas reporting EBITDA of €271 million with an EBITDA margin of 18.8%. Box volume growth for the first six months versus last year was 2.5%.

“During the first half, we completed the acquisition of two corrugated converting operations in the UK and Argentina and we announced the development of our new corrugated operation in Morocco.

“In April, we published our 15th Sustainable Development Report which highlighted the significant progress made in 2021 across our key metrics. These included a further 6% reduction in carbon intensity, a reduction in water consumption of over 6% and a decrease in waste to landfill intensity of 7% over the previous year.

“In Smurfit Kappa, we are very confident about our future prospects. Inevitably, with the current global issues that surround us there are greater uncertainties than we have seen for some time. Nevertheless, we continue to see many opportunities for growth in the sustainable and innovative packaging solutions that we offer customers and the unique footprint of the businesses we operate. Our first half performance has set a strong foundation for the remainder of 2022 and beyond.

“Reflecting the confidence in the quality of our business and its future prospects, the Board has approved an 8% increase in the interim dividend.”

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Half Year 2022 results conference call and webcast

The Group’s senior management team will host a conference call and webcast for analysts & institutional investors, at 09.00 BST (04.00 EST) on 27 July 2022. 

To access the conference call details, please register via the link below:

Access Conference Call Details

To access the webcast, please register via the link below:

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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.