Paper and packaging company Smurfit Kappa has reported drops in both revenue and profits for the six months to the end of June in what it called a "challenging macro backdrop".
But it expressed confidence that a swing away from spending on goods that led to a dip in the first half earnings will reverse later this year after some positive signs in the second quarter.
Smurfit Kappa said its half year revenue fell by 9% to €5.837 billion, while its profit before income tax fell by 14% to €659m.
It said its reported EBITDA for the first half of of the year fell by 5% to €1.113 billion with lower earnings in Europe and higher earnings in the Americas.
The company is to pay an interim dividend of 33.5 cent per share, an increase of 6% on the same time last year.
Packaging volumes have fallen as consumers spend more on travel and other services than packaged goods.
In March Smurfit Kappa said it had sold its Russian operations to local management, which completed its exit from the Russian market.
Its exceptional items amounted to €34m due to an impairment loss on assets and other costs relating to that sale of its Russian operations as well as currency issues.
Smurfit Kappa expanded its geographic reach with the opening of its new integrated plant in Morocco in July as well as the purchase of a speciality packaging operation in Spain.
Tony Smurfit, Smurfit Kappa's chief executive, said the company delivered an "excellent outcome" against a challenging macro backdrop with a strong first half performance.
"Although volumes declined by 6% in the first half, we saw market share gains across many of the countries in which we operate, and encouragingly, in Europe, during the second quarter, we saw our shipments per day improve on the previous 3 quarters," he said.
He said he feels very strongly that the trends seen over the last nine months or so will be reversed as we go through the rest of the year.
"Volumes were unsustainably high during the pandemic, are now very low and will reverse as we go forward," Tony Smurfit told CNBC in an interview today.
"As we come out of the pandemic and travel-related expenditure has improved, that obviously has an impact on packaging, but we do believe that that's going to change over the coming months as things normalise," he added.
"The steps we have taken and continue to take, have positioned SKG for long-term growth. These include expanding our geographic reach and product portfolio, our unrelenting focus on customer-led innovation and promoting our product's natural sustainable advantage to advance new growth opportunities," he said in today's results statement.
"Additionally, through our integrated model, customers benefit from security of supply even in the most challenging market conditions," he added.
Tony Smurfit said the company continues to excel in supplying innovative and sustainable packaging best reflected, within the period, by market share gains across many of the countries in which it operates.
"The significant number of design, innovation and sustainability awards received over the years are recognition of our customer focus and continues to demonstrate the quality and expertise of our people and the value they provide," he added.
Shares in the company moved higher in Dublin trade today.
