Smurfit Kappa Full Year 2020 Results

Key Points
*EBITDA of €1,510 million with an EBITDA margin of 17.7%
*Strong Free Cash Flow of €675 million
*ROCE of 14.6%
*Increased sustainability targets including net zero CO2 emissions by 2050
*Successful capital raise of €660 million to pursue attractive growth opportunities
*Final dividend increased by 8% to 87.4 cent per share

Tony Smurfit, Group CEO, commented:
“Smurfit Kappa is pleased to report an EBITDA of €1,510 million for the year 2020, ahead of our stated guidance. Both Europe and the Americas had strong demand in the fourth quarter offsetting significantly higher input costs, predominantly in recovered fibre. In what has been the most challenging year in recent memory I would like to acknowledge the tremendous efforts by all our 46,000 employees, and thank our over 65,000 customers for their continued support.

“Over a number of years SKG has transformed its business through disciplined capital allocation and a focus on innovation, further demonstrated today by our strong performance with an EBITDA of €1,510 million, an EBITDA margin of 17.7%, record free cash flow of €675 million and a ROCE of 14.6%.

“In November, we successfully completed a share placing to capitalise on structural drivers of growth; to invest in sustainability; and to increase our operating efficiencies. SKG is now increasingly well positioned to take advantage of these opportunities, from a position of enhanced financial strength.

“Our European business delivered a very strong performance with an EBITDA of €1,180 million and EBITDA margin of 17.8%. Demand accelerated in the second half, with a particularly strong fourth quarter driven by increased demand across our customer base.

“I am equally pleased with the performance in our Americas region which delivered an EBITDA of €372 million and a record EBITDA margin of 19.7%. This performance is as a result of our very strong market positions, our successful acquisitions and the high-return investments made in the region in recent years.
more detail at: https://www.smurfitkappa.com/newsroom/2021/skg-full-year-2020-results

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