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Q1 Results 2011

​6 May 2011

Smurfit Kappa, one of the world’s largest integrated manufacturers of paper-based packaging products, with operations in Europe and Latin America, today announced results for the 3 months ending 31 March 2011.


  • Sustained progressive volume and pricing recovery delivering 18% revenue growth year-on-year
  • 32% year-on-year increase in EBITDA to €243 million despite sharply higher input costs
  • Net debt reduced €49 million in the quarter. Further meaningful deleveraging expected through 2011
  • Ongoing input cost increases underpin continued pricing momentum

Performance Review and Outlook

Gary McGann, Smurfit Kappa Group CEO, commented: “In the first quarter of 2011 the Group reported continued performance recovery with revenue growth of 18% and EBITDA growth of 32% year-on-year. The Group also reported a relatively strong cash flow performance and a €49 million reduction in net debt in the period, bringing its net debt to EBITDA ratio to 3.2x.

SKG experienced good demand growth in the first quarter, and price recovery in our end markets continued to be achieved at a satisfactory level. However, the increase in raw materials, energy and other costs has proven sharper and more sustained than previously expected, thereby causing some near-term margin pressure. This resulted in two additional recycled containerboard price increases being implemented to date in 2011, which will require continued corrugated price recovery in the remainder of the year.

Entering the second quarter, while demand remains good, input costs have risen further, which if sustained will require additional price increases. Higher end-product prices, together with SKG’s continuing focus on operating efficiency and strong financial discipline should deliver earnings growth and meaningful debt paydown in 2011. The Group’s continued de-leveraging will expand its available range of strategic and financial options.”

Q1 Results 2011

​Forward Looking Statements

Some statements in this announcement are forward-looking.

They represent expectations for the Group’s business, and involve risks and uncertainties.

These forward-looking statements are based on current expectations and projections about future events.

The Group believes that current expectations and assumptions with respect to these forward–looking statements are reasonable.

However, because they involve known and unknown risks, uncertainties and other factors, which are in some cases beyond the Group’s control, actual results or performance may differ materially from those expressed or implied by such forward-looking statements.