Smurfit Kappa's Europe Business Posted Robust Results in H1 This Year
The European businesses recorded strong performance with an EBITDA margin of 17.6%.
SEATTLE (Scrap Monster): Leading European packaging firm, Smurfit Kappa announced results for the six-month period ending 30 June, 2020. The company reported strong performance across all key metrics during this period, in view of the challenging market conditions.
The company reported EBITDA of 735 million euros with an EBITDA margin of 17.5%. The free cash flow during the half-yearly period was 238 million euros. The operating profit before exceptional items recorded year-on-year decline by 19% to total 450 million euros. The revenues recorded 9% decline during the six-month period. The EBITDA too was down by 13%, in comparison with the corresponding six-month period in 2019.
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The European businesses recorded strong performance with an EBITDA margin of 17.6%. The corrugated box volumes remained flat. The corrugated pricing remained in line with expectations. The box demand, on absolute basis, was marginally up by 1%, whereas it remained flat on an organic basis.
Smurfit Kappa Group announced completion of its largest ever investment of 134 million euros in a recovery boiler in Austria, which in turn is expected to reduce its carbon dioxide emissions by 40,000 tonnes.
Tony Smurfit, Group CEO commended the entire team for delivering robust results, amidst challenging operating environment due to Covid-19 pandemic. The results demonstrate the strength of the Group, he added.