By Smurfit Kappa Group has announced a decline in pretax profit for the year 2023, while revealing an increase in dividends and a return to demand growth in the fourth quarter. The paper-based packaging company recorded a pretax profit of 1.055 billion euros ($1.13 billion) for the year, compared to 1.29 billion euros the previous year.
The company attributed the challenging demand environment to destocking and reduced economic activity in specific sectors throughout the year. However, it noted a significant rise in demand for sustainable packaging solutions and a gradual improvement in overall demand, culminating in growth during the last quarter.
Notably, the adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was 2.08 billion euros, surpassing the previously announced estimate of around 2.05 billion euros from the third-quarter results. This figure excludes exceptional and one-off items.
Smurfit Kappa Group’s revenue for the year reached 11.27 billion euros, a decrease from the 12.82 billion euros reported the prior year.
Despite a 3.5% decline in box volumes for the full year, the company remains optimistic about the start of 2024.
Overall, although pretax profit declined, Smurfit Kappa Group experienced growth in demand for sustainable packaging solutions and displayed resilience in a challenging business environment.
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