Smurfit Kappa Group Reported Revenue of €2,194 Million in Q1 2020
The Group reported revenue of €2,194 million and EBITDA of €380 million during this period.
SEATTLE (Scrap Monster): Smurfit Kappa Group plc announced trading update for the initial three-month period of the current year and an update on COVID-19 impacts on its business.
The Group reported revenue of €2,194 million and EBITDA of €380 million during this period. It delivered EBITDA margin of 17.3%, even in the midst of challenging operating environment. The volumes in Europe have increased by almost 2% on an organic basis. Meantime, the demand in the Americas surged higher by almost 3%-5% over the previous year.
All of the company’s facilities continued to remain operational during these uncertain times, noted Tony Smurfit, CEO. The company remains well positioned both financially and operationally. The Group had liquidity of over €1.5 billion and no bond maturity until 2024 at the end of Q1 2020, he added.
Smurfit Kappa announced several cost reduction initiatives to weather the impacts caused by COVID-19. The capital expenditure estimate for 2020 has been reduced from earlier guidance of €615 million, to be in the range of €500-550 million. Also, it has decided to withdraw the previously proposed final dividend of 80.9 cent per share, in the light of increased macro-uncertainty.
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