Corrugated packaging giant Smurfit Kappa has reported a drop in earnings and box demand in its latest financial update.

Smurfit Kappa reports drop in box demand but pleased with EBITDA margin

Earnings before interest, tax, depreciation, and amortization (EBITDA) reached €1.7 billion, experiencing an 8% decline over the nine-month period. During the third quarter, box demand lagged 2% behind 2022 levels.

Smurfit Kappa Group CEO Tony Smurfit characterized the EBITDA performance as "excellent," noting a rise in the margin from 18% to 19% compared to the same period last year.

Smurfit emphasized the ongoing effectiveness of multi-year capital plans, the global footprint, and the dedication of their workforce. He highlighted SKG's commitment to providing customers with innovative and sustainable products through an integrated model.

Regarding box demand in the third quarter, Smurfit mentioned a 2% shortfall compared to 2022 levels, a notable improvement from the negative 7% and 5% experienced in the first and second quarters, respectively. Anticipating a continued positive trend, especially with improved order books in Germany, he expressed confidence in the company's trajectory.

Last month, Smurfit Kappa confirmed discussions with WestRock about a potential merger, a move that could result in a company boasting potential sales of €34 billion. Smurfit expressed enthusiasm about the merger, highlighting the unique value creation opportunity for both companies and the prospect of becoming the preferred fiber-based packaging partner.


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