SKG Full Year 2023 Results

Smurfit Kappa Group plc (‘SKG’, 'Smurfit Kappa' or ‘the Group’) today announced results for the full year ending 31 December 2023.

Key points:

• Revenue of €11.3 billion
• EBITDA of €2,080 million and an EBITDA margin of 18.5%
• Return on capital employed of 17.1% 
• Free cash flow of €628 million
• Net Debt to EBITDA ratio of 1.4x
• Announced combination with WestRock to create a global leader in sustainable packaging
• Final dividend increased by 10% to 118.4 cent per share

Tony Smurfit, Group CEO, commented:

“We are pleased to deliver an excellent outcome for the Group in 2023 with full year EBITDA of €2,080 million, an EBITDA margin of 18.5% and a ROCE above our target. Our results, the second best in our 90 year history, reflect the excellence of our people and their dedication in providing the most innovative and sustainable packaging solutions for our customers. The results also demonstrate the continuing benefits  of SKG’s multi-year and highly effective capital programmes.

“The demand environment for the industry in 2023 was difficult primarily due to destocking and a lack of economic activity in certain sectors, particularly durable goods. However, one trend in which we have seen strong acceleration, is an increasing demand for sustainable packaging solutions. While full year volumes for the Group were down 3.5%, we saw a progressive improvement in demand during the year, with a return to growth in the fourth quarter.

“Our performance-led culture continues to drive our industry leading performance, with our people living our values of Loyalty, Integrity, Respect and Safety at work. We have a relentless focus on quality and delivery for our customers. This, combined with an unparalleled offering across our 36 countries and our unique industry applications, gives us an unrivalled advantage. 

“As mentioned above, our disciplined capital allocation programme has been a significant source of our success. During 2023 we invested over €1 billion, which together with prior years’ spend, sets a strong platform for future growth and delivery. Additionally, with the wide geographic and product diversity that exists within SKG we continue to see opportunities for growth and expansion. As an example, we are developing our Bag-in-Box business across multiple geographic regions and have expanded into Morocco with a new state of the art corrugated facility. 

“In SKG we have always been at the forefront of ensuring we provide the most innovative and sustainable packaging for our customers as well as setting ambitious sustainability targets for ourselves. We will shortly release our 17th Sustainable Development Report, illustrating progress towards our 2030 targets. The Group continued to be recognised in 2023 for its leading sustainability credentials. Moreover in 2023, we received numerous awards across multiple categories, best illustrated by our 12 most recent WorldStar awards for  innovation, significantly in excess of our peers.

“In September, we announced an agreement to combine with WestRock to form Smurfit WestRock. Since then we have had the opportunity to expand our knowledge of the WestRock organisation, and its people, and have visited many of their facilities. With a deeper understanding of the WestRock business, we are increasingly excited about the potential this combination presents.

“Our 2023 results again demonstrate Smurfit Kappa Group’s proven capacity to perform across all market conditions. While there are, and will always be, challenges in the macro environment, we look forward to the year ahead with confidence and excitement. Reflecting the continuing confidence in the strength, quality and  performance of the Smurfit Kappa business, the Board is recommending a 10% increase in the final dividend to 118.4 cent per share.

Download FY 2023 Results press release

Download FY 2023 Results presentation

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.