Corrugated packaging company Smurfit Kappa hiked its dividend on Wednesday as it reported a jump in full-year revenue and earnings amid solid demand.
In the year to the end of December, earnings before interest, tax, depreciation and amortisation rose 13% to €1.7bn, with revenue up 18% at €10.1bn. Pre-tax profit rose 22% to €913m and the final dividend was lifted 10% to 96.1 cent per share.
Smurfit said corrugated demand was up around 8% for the year, with strong performances in all countries, and that corrugated pricing has continued to improve in line with its expectations.
Chief executive Tony Smurfit said: “I am happy to report that Smurfit Kappa has delivered another excellent performance in 2021. This was particularly pleasing as the year was characterised by unprecedented cost inflation.
“This performance demonstrates the strength of the integrated model, the quality of our business, our operational efficiency and increasing geographic and product diversity.”
Smurfit said current trading was strong and the group’s integrated paper and packaging system “remains effectively sold out”.
At 0825 GMT, the shares were up 2.3% at 4,046p.
