SKG Full Year 2022 Results

Smurfit Kappa Group plc (‘SKG’ or ‘the Group’) today announced results for the full year ending 31 December 2022.

Key Points

• Revenue growth of 27% to €12,815 million
• EBITDA growth of 38% to €2,355 million with an EBITDA margin of 18.4%
• Return on capital employed of 21.8%
• Net Debt to EBITDA ratio below 1.3x
• Pre-exceptional EPS growth of 62%
• Final dividend increased by 12% to 107.6 cent per share

Tony Smurfit, Group CEO, commented:

“Set against a year of extraordinary circumstances, 2022 was another highly successful year for the Smurfit Kappa Group. Our performance reflects the ongoing benefits of our investment programme together with our customer-led innovation and sustainability initiatives. SKG’s integrated model together with our geographic footprint continue to deliver for all stakeholders.

“Revenue for the year was up 27% to €12.8 billion. EBITDA for the full year was €2,355 million, a 38% increase over 2021, with an EBITDA margin of 18.4%, ROCE of 21.8% and a net debt to EBITDA of less than 1.3x. Our balance sheet metrics are the strongest in the Group’s history, providing SKG with significant strategic and financial flexibility.

“For the full year, box volumes for the Group were down less than 2%. The rate and pace of inflation clearly had a negative effect on the demand environment in 2022. As guided by the Group, this coincided with the partial reversal of the unsustainably high demand levels seen through the pandemic period. This slowdown was particularly evidenced in the latter part of the year, especially in the month of December, where we saw stock reductions and downtime taken by customers.

“In our European business, box volumes were down 2% year-on-year. While two of our larger countries, Germany and the UK, performed below our expectations, others, such as Spain and France, were less affected.

“Box volumes in the Americas, excluding acquisitions, were broadly flat year-on-year, with growth in Mexico, Colombia, Brazil and Argentina offset by a weaker performance in our North American business.

“The year was characterised by unprecedented cost inflation, especially in energy, which moderated in the latter part of the year. As illustrated by our performance in 2022, SKG has successfully navigated this environment.

“In 2022 we invested close to €1 billion to support our customers and capitalise on long-term demand growth drivers. We also continue to make progress towards our sustainability goals with investments to reduce our carbon footprint, reduce our impact on the environment and help our customers achieve their own carbon reduction and sustainability goals.

“The Group continued to expand its geographic footprint and product portfolio through acquisitions in 2022. In Europe, we purchased operations in Spain and the UK, while in the Americas, we acquired operations in Argentina and Brazil.

“We are immensely proud of the work of the Group and its employees in supporting many different social programs across the world. This includes significant support for the Ukrainian people impacted by the war. Additionally, we continue to invest in the communities in which we operate through programs in health, education and environmental protection while our employees devote time and energy to social projects.

“In September, the Group published its first Green Bond Allocation and Impact Report, detailing the use of the proceeds of the €1 billion dual-tranche Green Bonds issued in 2021. Issued with coupons of 0.5% and 1% respectively, for tenors of 8 and 12 years, these coupons are the lowest in the Group’s history.

“Although very early, 2023 has started well. While there are and always will be challenges, SKG has never been in better shape strategically, financially and operationally. We have put ourselves in a position with the steps that we have taken and continue to take, to deliver high quality performance and to take advantage of the many opportunities we see around us.

“Reflecting confidence in the strength, quality and performance of the Smurfit Kappa business, the Board is recommending a 12% increase in the final dividend to 107.6 cent per share.”

Download FY2022 Results Press Release

Download FY2022 Results Presentation

 

Conference Call and Webcast

The Group’s senior management team will today host a conference call and webcast for analysts and institutional investors at 09.00 GMT (04.00 EST).

To access the conference call details, please register via the link below:

ACCESS CONFERENCE CALL DETAILS

To access the webcast, please register via the link below:

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Please allow sufficient time for registration.

Forward Looking Statements

This Announcement contains certain statements that are forward-looking. Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations of the Group about future events, and involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Although the Group believes that current expectations and assumptions with respect to these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to be correct. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by the forward-looking statements.

Forward-looking statements should therefore be construed in the light of such factors. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made. Other than in accordance with legal or regulatory obligations, the Group is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. The forward-looking statements in this document do not constitute reports or statements published in compliance with any of Regulations 6 to 8 of the Transparency (Directive 2004/109/EC) Regulations 2007.