Smurfit Kappa has released a trading update for the three months to 31 March 2020 and an update on the impact of COVID-19 on its business. It generated revenues of €2,194m and an EBITDA of €380m (EBITDA margin of 17.3%).
Tony Smurfit, Group CEO, commented, “SKG is closely monitoring the development of the COVID-19 pandemic and its impact across our people, our operations and the broader stakeholder base. Our immediate, primary focus is to protect our employees and continue to meet our customers’ needs.
“During the quarter, all of our facilities were operational as a result of our employees’ dedication and commitment. The scale and geographic reach of our operations has also ensured that our extensive and diverse customer base has been able to deliver its essential and critical supplies. We are an integral part of today’s vital supply-chains, whether it is ensuring that retailers remain supplied with food and other basic goods or ensuring that critical pharmaceutical and medical supplies and devices reach hospitals and other health care facilities where they are needed to fight this pandemic. Our position, with an integrated, secure system of over 350 facilities and a global reach, is a significant strength. Equally, our culture embraced by over 46,000 employees which is supported by our core values of safety, loyalty, integrity and respect, continues to give me great confidence for the future.
“In an obviously challenging operating environment I am proud of the dedication shown by all of my colleagues in delivering an EBITDA result of €380m, with a Group margin of 17.3%. Volumes in Europe increased by 3% or approximately 2% on an organic basis, while demand in the Americas grew by 3.5% year-on-year.
“During these uncertain times, we have a heightened focus on cost reduction while maintaining our market-leading innovation and sustainability offering. While the full extent and effects of the macro and economic risks brought on by COVID-19 are unclear, SKG remains well positioned both financially and operationally.”
