Smurfit Kappa Group announced a decrease in pretax profit and revenue for the first half of the year, primarily due to declining volumes. However, the company was able to gain market share across various countries and remains confident in its future prospects.
For the six months ended June 30, the paper-based packaging company reported a pretax profit of 659 million euros ($723.8 million), compared to 769 million euros in the first half of 2022. Similarly, earnings before interest, taxes, depreciation, and amortization (EBITDA) declined to 1.11 billion euros from 1.17 billion euros. Nevertheless, the company’s EBITDA margin increased to 19.1% from 18.4%.
While Europe experienced lower earnings, the Americas saw higher earnings for the company. Operating profit dropped from 839 million euros to 779 million euros, and revenue for the first half totaled 5.84 billion euros, down from 6.39 billion euros.
Despite the challenges faced with volume declines, Chief Executive Anthony Smurfit expressed optimism by highlighting market share gains in many operating countries. He further noted improvements in shipments per day during the second quarter.
The board of Smurfit Kappa Group announced an interim dividend of 33.5 European cents, reflecting confidence in the company’s future.