Packaging company Smurfit Kappa has reported underlying revenue growth of 6% to €2.269 billion after what it called a "remarkable" three month period to the end of March.
Smurfit Kappa said it saw strong corrugated volume growth in practically every area and all markets in which it operates.
With unprecedented industry wide shortages of supply and input cost pressures, paper prices have moved up sharply and the company said it was recovering these input costs in line with its expectations.
Smurfit Kappa said that corrugated volume growth in the first quarter was up about 7% in both Europe and the Americas.
It said this shows its exposure to high-growth markets, sectors and channels including innovative and sustainable packaging solutions and e-commerce as online shopping levels soar during the Covid-19 lockdowns.
The company said that containerboard prices increased in the first quarter and again at the start of the second quarter as a result of strong demand and higher recovered fibre and other costs.
It said its recovered fibre cost increased by about €90m compared to the same time last year, adding that it is progressively recovering these input costs through its corrugated box system.
"In addition to cost pressures, the industry is experiencing supply disruptions and shortages of packaging papers globally.
"Against this market backdrop, our integrated business model is again, proving a key differentiator with continuity of supply to our customer base," Smurfit Kappa said.
Smurfit Kappa also said its "Better Planet Packaging" initiative continues to drive significant interest among its customer base with over 2,700 attendees joining its conference in March.
"The increased value and application of corrugated as the most sustainable merchandising and transport medium is evermore apparent. This will remain a strong driver of future growth as paper is renewable, recyclable and biodegradable and the product of choice by consumers for a more sustainable world," the company said.
It also said it is accelerating its capital investment plans with many high return projects that will enhance shareholder returns.
These include the construction of "mega plants" and the acquisition of many converting machines in order to meet customers' demand growth and continue its cost optimisation programmes.
A number of paper investments are also being deployed to further strengthen its integrated model and improve its sustainability footprint, it added.
Group chief executive Tony Smurfit said he was very proud of Smurfit Kappa's staff, who have continued to deliver in these "exceptional times", ensuring security of supply to customers while also continuing to support them through the company's approach to innovation and its sustainable packaging products.
"Smurfit Kappa has, over the last number of years, through continuous investment and acquisitions, structurally improved the business for the benefit of all stakeholders," Mr Smurfit said.
"Our strong first quarter performance has set the foundation for accelerated revenue and earnings growth as we move through 2021. This performance and these prospects reflect the strength and quality of Smurfit Kappa," the CEO added.
Smurfit Kappa shares moved higher in Dublin trade today.
