Smurfit Kappa swings to loss owing to Venezuela unrest

Writer, Stock Market Wire
Wednesday, February 13, 2019 - 07:15

Packaging group Smurfit Kappa swung to annual loss after it wrote down its operations in Venezuela amid claims of government interference in the strife-torn country.

Underlying earnings, however, rose as the company improved margins by successfully passing higher input costs onto customers.

Pre-tax losses for the year through December amounted to €404m, compared to a profit of €576m on-year, and included a €1.27bn charge related to Venezuela.

Ebitda rose 25% to €1.55bn, with an operating margin of 17.3%, up from 14.5% on-year.

Revenue rose 4% to €8.95bn.

Smurfit Kappa declared a final dividend of 72.2c per share, up 12% on-year.

Chief executive Tony Smurfit said the company had delivered on or exceeded its key measures

'Our 2018 performance demonstrates the group's transformation of recent years, which is delivering progressively superior returns,' chief executive Smurfit said.

'While we are always conscious of macro-economic risk, Smurfit Kappa is very well positioned to capitalise on industry opportunities and to deliver consistently excellent performance for all stakeholders,' he added.

'The current year has started positively, and together with the continued development of sustainable packaging, e-commerce and other demand drivers, Smurfit Kappa has an exciting future.'


Related content

Smurfit Kappa completes €750m corporate bond offering

Packaging company Smurfit Kappa said it had completed an offering of €750m euro-denominated senior notes due in 2027.

The notes priced at par and had...

Mon, 16/09/2019 - 14:51

Smurfit Kappa to issue €500m of corporate bonds

Packaging company Smurfit Kappa said it would offer €500m of euro-denominated senior notes due in 2027.

The funds would be used, along with cash holdings,...

Mon, 02/09/2019 - 09:54

The FTSE 350 stocks making our lives better


Invest in what you know is the golden rule for first time investors. This advice has stood the test of time and is a great...

Thu, 29/08/2019 - 00:00

Smurfit Kappa subsidiary fined €124m by Italian competition regulator

Packaging company Smurfit Kappa Group said its Italian unit had been fined €124m after authorities found it was among dozens of companies to have engaged...

Tue, 06/08/2019 - 13:05

Centrica dividend cuts begs the question of who will be next (and a checklist to test how safe forecast pay-outs really are)

As yet another fat dividend yield that looked too good to be true proves to be just that, with Centrica’s decision to slash its...

Tue, 30/07/2019 - 14:03