Paper and packaging group Smurfit Kappa says it is 'highly confident' in its outlook for 2019 after reporting a 17% growth in earnings in the first half of the year.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose from €724 in the first six months of 2018 to €847m in the first half of this year, the group said today.
Revenue at the company grew by over 4% to €4,622m, while the company's profit before income tax grew to €456m, up 9% on the first half of 2018.
Group CEO Tony Smurfit welcomed the results, which he described as 'excellent':
"The continued execution of our Medium-Term Plan together with our resilient business model allows us to continue to progress and deliver consistently excellent performance.
"During the first six months, our European business continued to perform strongly, delivering an increased EBITDA margin of 19.3%, up from 17.3% in the same period in 2018.
"Box volumes grew by approximately 2% on an organic basis, or 4% when including acquisitions."
During the first six months of 2019, the group continued its geographical expansion, completing acquisitions in Bulgaria, Colombia and Serbia.
Mr Smurfit said that while macro-economic and political risks remain, the group is 'highly confident of another year of progress and delivery'.
He said the board is recommending a 10% increase in the interim dividend, to 27.9 cent per share.
