Paper and packaging group Smurfit Kappa has said that due to the increased global uncertainty due to the Covid-19 pandemic, it believes it is prudent to no longer recommend the previously proposed final dividend of 80.9 cent per share.
In a trading update, Smurfit Kappa added, however, that its performance in the first quarter was strong.
It said the company's balance sheet, liquidity position and cash flow generation continue to give the board confidence in the prospects for the business and its strategic direction.
Revenues for the three months to the end of March amounted to €2.194 billion, while the company reported earnings before interest, tax, depreciation and amortisation of €380m.
Smurfit Kappa has been deemed an "essential business" in generally all of the countries in which it operates.
"We are uniquely positioned to continue to service our customers' needs given our unrivalled operational footprint and broader market-offering.
"SKG has a critical role in the fight against Covid-19, as without our packaging many vital supply chains including medical equipment, pharmaceutical, food and sanitation products would not be delivered," the company stated.
"During these uncertain times, we have a heightened focus on cost reduction while maintaining our market-leading innovation and sustainability offering", commented the company's Group CEO Tony Smurfit.
"While the full extent and effects of the macro and economic risks brought on by Covid-19 are unclear, Smurfit Kappa Group remains very well positioned both financially and operationally," the CEO added.
