Smurfit Kappa boosted by Q3 performance

FTSE 100 packaging giant Smurfit Kappa (LON:SKG) saw its share price climb by 3.94% to 3,216p (as of 12:30 BST) after posting a trading update for the nine months to 30th September. Management said that performance during the third quarter was ahead of expectations but EBITDA for the full nine months was still 10.5% down on the comparative period.

CEO Tony Smurfit commented: “I am pleased to report that the quality of our business and the strength of our people has produced an excellent performance in both the third quarter and the year-to-date. While some uncertainty still exists around the evolution of the effects of COVID-19 in the weeks ahead, absent a dramatic change to working practices, the Group expects to deliver EBITDA in the range of €1,460 million to €1,480 million for the full year 2020.

“We are increasingly excited by our future prospects and the structural growth drivers of our business including e‑commerce and sustainable packaging as well as our innovative ability to capitalise on these opportunities. Reflecting the Board’s confidence in SKG’s performance and prospects, it is recommending a second interim dividend of 27.9 cent per share. This second interim dividend, following the payment of an interim dividend in September, ensures the Group is aligned with the dividend payment cycles of previous years. It is proposed to pay this dividend on 11 December 2020 to all ordinary shareholders on the share register at the close of business on 20 November 2020“.