Paper and packaging company Smurfit Kappa has reported a 25% jump in first quarter earnings and said it "confidently" expects to deliver another year of progress.
In a trading update issued ahead of its AGM today, Smurfit Kappa said its EBITDA rose to €424m in the three months to the end of March.
Smurfit Kappa said its higher earnings reflected corrugated pricing, demand growth, "a relentless focus" on cost efficiencies and the benefits of its capital programme.
During the quarter, the group completed acquisitions in Bulgaria and Serbia as it continues to expand its geographic reach.
In Europe, Smurfit Kappa said its first quarter organic corrugated volumes grew by 2% year-on-year, with corrugated pricing in line with expectations.
It said that in the Americas, organic volume growth was 3% year-on-year with "especially pleasing" performances in its three largest countries - Colombia, Mexico and the US.
The group said it continues to progress its "Better Planet Packaging" initiative, which works with brand owners, retailers and designers to develop the most sustainable, biodegradable and innovative packaging solutions for customers.
"The group has had an excellent start to the year building on our established strengths of customer-focused innovation, our integrated operating model, and our ever expanding geographic reach," commented Tony Smurfit, Smurfit Kappa Group CEO.
"While there is invariably political and economic risk, we confidently expect to deliver another year of progress," he added.
