Smurfit Kappa sees volume growth in Americas, Europe

Though its first-quarter revenue is down slightly this year compared with last year, Irish paper and packaging company Smurfit Kappa reports continued improvement in box demand, particularly in Europe and the Americas, in what the company says was a “very strong first quarter.”

Revenue for the first quarter of 2024 was 2.7 billion euros ($2.9 billion) compared with 2.99 billion euros ($3.2 billion) in the same period last year, and earnings before interest, taxes, depreciation and amortization (EBITDA) also were down year over year, coming in at 487 million euros ($524 million) in the first quarter of 2024 compared with 579 million euros ($623 million) in the first quarter of 2023.

However, Smurfit Kappa CEO Tony Smurfit says the company has “once again delivered” and notes an encouraging trend in box demand.

In Europe, Smurfit Kappa reports 3 percent volume growth, while the Americas saw a 2 percent increase in volume growth—a turnaround from the declining volumes of 2023.

“These results reflect the continuing benefits of our multiyear capital plans and the dedication and commitment of our people, providing the most sustainable and innovative packaging solutions for our customers,” Smurfit says in a May 2 statement.

The company also provided an update on its merger with Atlanta-based paper and packaging company WestRock—a move that officially was announced in September 2023. Smurfit Kappa says the integration planning with WestRock is progressing well and as expected, with the deal on track to be completed in early July.

In April, the European Commission, under the EU Merger Regulation, approved the merger, concluding the move would not raise competition concerns given the companies’ limited combined market position resulting from the proposed transaction.

“Due to our investment program in recent years and set against an improving industry backdrop with long-term positive structural trends, our combination with WestRock creates a global leader in innovative and sustainable packaging with a very exciting future for all stakeholders,” Smurfit says.