Packaging group Smurfit Kappa has reported a 10% increase in third quarter revenues, while operating profits rose by 9% for the three months to the end of September.
Third quarter revenues rose to €2.016 billion from €1.830 billion, while operating profits grew to €196m from €180m.
Profits before income tax rose by 2% to €104m from €102m, the company added.
The company said it has raised prices for recycled grades by €30 a tonne from November 1 due to good European market conditions, adding that it is on track to deliver the expected level of earnings before interest and tax for the full year.
Shares in Smurfit Kappa closed 1.1% higher in Dublin trade following the results.
European revenues rose by €45m in the third quarter due to higher containerboard pricing and despite negative currency movements. Shipments in Europe also benefited by an extra working day in the third quarter. It noted that the group's Polish, UK and Benelux corrugated operations performed strongly with adjusted volume growth of 10%, 7% and 4% respectively.
Revenues rose by €141m in the Americas, while EBITDA increased by €35m as a result of strong underlying volume and revenue growth throughout the region, especially in Venezuela. The group noted that demand in Columbia continues to show signs of recovery, but Argentina continues to see low growth levels and challenging economic conditions.
Commenting on today's results, Smurfit Kappa's chief executive Gary McGann said that the group's objective is to sustain top line growth through economic pricing, accretive acquisitions and effective capital investment.
"The strength of our capital structure today together with our expectation of materially improved free cash flow continues to expand the available range of options to deliver and to drive value from 2014," he added.