Smurfit Kappa's revenue and core profit both rose by 33% year on year in the first quarter, which the box-maker attributed to significant investment to support growing demand and ensure security of supply.
Europe's largest paper packaging producer said demand remains strong in the second quarter after corrugated box volumes grew 3.6% in the first three months of the year and that it is increasing prices progressively.
'Input Costs'
The Irish group raised prices by 19% in 2021 and had flagged further increases this year to recover input costs that it said on Friday had risen sharply in practically all areas, with existing supply chain problems exacerbated by the conflict in Ukraine.
Friday's trading update did not disclose the extent of its price increases in the first quarter.
"Our integrated and resilient business model has ensured security of supply in this increasingly complex environment," Tony Smurfit, chief executive said in a statement.
Smurfit said in February that customers were more concerned about getting their hands on a sufficient amount of packaging than how much they were having to pay for it.
WorldStar Global Packaging Awards
Earlier this year, Smurfit Kappa announced that it won 13 awards at the WorldStar Global Packaging Awards 2021.
Innovative solutions, including corrugated packaging for the transportation of fresh fish, a paper-based ceiling luminaire that replaces metal and plastic fittings, and a space-saving, easy-to-assemble packaging solution for confectionery all received top honours in the 2022 awards.
The Beverage category was one of the areas where Smurfit Kappa said it 'shone' at this year’s awards.
Its TopClip packaging solution, which is a sustainable alternative for the shrink wrap commonly used to bundle multipacks of cans, took home an award.
News by Reuters additional reporting and edited by Donna Ahern Checkout. For more Packaging stories click here. Click subscribe to sign up for the Checkout print edition.
