Packaging company Smurfit Kappa reported a 21% drop in pre-tax profit to €245m for the first half of the year, despite a 5% rise in revenue to €4.2 billion.
The firm’s interim dividend increased by 5% to 23.1 cent during the period.
Europe and the Americas saw growth for Smurfit Kappa, driven by an improvement in corrugated price recovery.
Chief Executive Tony Smurfit described the figures as a good set of results against the backdrop of what he called unprecedented inflation in the cost of recovered or recycled paper fibre - the company's key raw material.
Those costs were up by €75m in the quarter compared with the same period last year.
Between January and June Smurfit Kappa invested €177m across its regions and expects to spend over €400m by year end.
Mr Smurfit added: "SKG continues to develop and improve its operations across all its business areas. Growth and cost reduction investments allied with our track record of earnings enhancing acquisitions will continue to improve the prospects for the Group.
"While recovered fibre cost pressures present short-term challenges, SKG is better positioned today than at any other point in our recent history.
"Our capital structure, our asset base and our integrated business model continue to strengthen.
"This will enhance our ability to translate today’s market conditions into improved earnings in 2017 and beyond".
