Irish-based packaging giant Smurfit Kappa posted revenue growth of 4% in 2018 to €8.9 billion.
The group also reported an EBITDA of €1.5 billion for the full year, a 25% increase on 2017. Its EBITDA margin was 17.3%.
“Our 2018 performance demonstrates the Group’s transformation of recent years, which is delivering progressively superior returns. This creates the platform for success in 2019 and beyond,” Tony Smurfit, Group CEO, said.
“The Group delivered on or exceeded its key measures. This reflects our market-leading positions, our innovation capability and investment decisions. Above all else, it reflects an unrelenting focus on delivering value to our customer base, a performance-led culture and the quality of our people.”
Demand & Input Cost Recovery
The group performed strongly in Europe, posting underlying revenue growth of 7%, driven by a “combination of demand growth, input cost recovery and the benefits of our investment programme”.
It also undertook significant acquisition activity in France, the Netherlands, and Serbia, which are “well positioned in their respective markets and offer great opportunities for future growth”.
In the Americas region, the group reported underlying growth of 8%, with particularly strong performances in Mexico and Colombia, boosted by input cost recovery, demand growth, and the group’s investment plan.
During the year SKG reconsolidated its Venezuelan operations after “continuing actions and interference of the Government of Venezuela”.
“The Group has initiated international arbitration proceedings to protect the interests of its stakeholders and seek compensation from the Government of Venezuela for its unlawful actions,” Smurfit added.
Looking ahead, Smurfit said that 2019 has started positively, and “together with the continued development of sustainable packaging, e-commerce and other demand drivers, SKG has an exciting future”.
© 2019 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition.
