Paper and packaging group Smurfit Kappa has reported pre-tax profits of €136m for the six months to the end of June. This compares to a pre-tax loss of €9m the same time last year.
Revenues for the six months rose by 14% to €3.67 billion from €3.23 billion, while the company said it reduced its net debt by €107m in the first half of the year.
Smurfit Kappa said that demand for its products remains healthy, with Germany remaining the key driver of growth in Europe. Its Latin American operations also performed strongly in the first half of the year.
The company said the cost of its raw materials and energy rose by about €300m year-on-year, although the rising input costs continued to be partly recovered through increased corrugated pricing.
The company's chief executive Gary McGann said that despite the positive operating performance in the first half of the year, given that the risks to the global economy are increasing, it is difficult to be definitive about the business outlook.
During the six-month period, Smurfit Kappa closed its recycled containerboard mill in Nanterre in France. This resulted in an exceptional charge of €35m, including €13m of impairment losses.
Including Nanterre, the company has now permanently closed 10 less efficient containerboard mills since 2005 - the equivalent of 920,000 tonnes of capacity.
