Smurfit Kappa shares rise on quarterly earnings improvement
Recasts on share price rise
DUBLIN, May 2 (Reuters) -Smurfit Kappa SKG.I shares rose in early trade on Thursday after its first quarter core profit fell sharply year-on-year but was higher than the final quarter of 2023 when it had signalled a dip in demand for packaging was at an end.
Smurfit, Europe's largest paper packaging producer, posted a 16% year-on-year fall in core profit to 487 million euros ($522 million) but was 7% higher than the final three months of 2023.
Its shares were 3% higher at 0825.
Smurfit also reported volume growth of 3% in Europe and 2% in the Americas and chief executive Tony Smurfit told an analyst call that the pricing environment was improving with customers informed of increases coming in May and June.
The Irish group's margin on earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at 18% compared with 16.6% in the previous quarter and 19.3% a year ago.
Smurfit said it remained on track to complete its $11 billion acquisition of U.S. rival WestRock WRK.N in early July.
($1 = 0.9327 euros)
Reporting by Padraic Halpin; editing by Jason Neely and Tomasz Janowski
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