Smurfit Kappa ended the 2018 fiscal year with a 4% increase in revenue, reaching €8.946 million.
The multinational achieved an EBITDA of 1.545 million euros, representing a 25% improvement compared to the previous fiscal year.
The return on capital employed (ROCE) also improved by 19,3% in the fiscal year, which is a useful measure for comparing the company's relative profitability after deducting capital employed. As for cash flow, the figures amount to €494 million, representing a 61% increase compared to 2017.
The acquisitions made with the company's own financial resources during the last year also translated into positive results. These are operations integrated into an expansion strategy that, projected by the company in the medium term, has already led to an increase in revenues of €120 million and profits of €21 million at the end of the financial year. “ Our 2018 results demonstrate the group's transformation in recent years, which is generating increasingly better returns. We met and exceeded our defined objectives, confirmed our market leadership, enhanced our innovation capacity, and were successful in our investments. In short, these results demonstrate our unwavering commitment to offering ever greater value to the customer, based on our team's utmost commitment to providing the best possible service ,” says Tony Smurfit, CEO of the company.
Smurfit Kappa's current strategy has allowed it to increase its revenues in Europe by 18,3%, as well as significantly improve its EBITDA compared to the previous year, totaling €1.267 million. “ Our European business performed very well in 2018, with revenue growth of 7%. This was due to a combination of increased demand, cost containment, and the results of the investment plan. Furthermore, it is worth highlighting the significant growth experienced by the company in most EU countries, despite some adverse factors in certain regions ,” acknowledges Tony Smurfitt.
Regarding Smufit Kappa's results in Latin America, according to the company's CEO, " we had revenue growth of 8%, and our business continued to improve as the year progressed, with particularly solid performance in our key markets of Mexico and Colombia. Across the region, we saw progress in cost recovery, demand growth, and, as with our European business, improved investment results ."
Throughout 2018, the Group expanded its network of Experience Centres to a total of 26, with the opening of centres in Alicante and Russia, among others. These spaces help Smurfit Kappa customers find the packaging solutions best suited to their products.
Furthermore, it maintained its commitment to innovation through the development of new e-commerce solutions, resulting from the use of eSmart, an exclusive specialized packaging service for this emerging sales channel. This represents the culmination of years of experience and collaboration between Smurfit Kappa and its clients. Thanks to this, the company is able to optimize its packaging solutions, adapting them to the demands of the online sales channel.
