The price of shares in FTSE 100 packaging outfit Smurfit Kappa (LON:SKG) has increased by 2.88% to 3,642p (as of 11:45 GMT) after pre-tax profits for the year ended 31st December increased by 10%. Revenues for the period were down by 6% and while the group’s EBITDA was down on last year, it was ahead of prior guidance.
CEO Tony Smurfit commented: “Driven by strong secular trends such as e-commerce and sustainability, the outlook for our industry is increasingly positive. SKG has positioned itself as the leading company within the industry, with great people, providing our customers with unique packaging solutions centred around innovation, efficiency and sustainability. The inherent strength of our business together with the recent capital raise provides us with an unrivalled platform to accelerate our vision and the Group’s next phase of growth and development.
While there remains some uncertainty on the impact and duration of COVID-19, the year has started well with the continuation of the demand trends seen during the last quarter. Reflecting the Board’s confidence in this performance and prospects for the business looking forward, the Board is proposing an increase in the final dividend of 8% to 87.4 cent per share“.