Wednesday 10 February 2021 7:40 am

Smurfit Kappa Group increases dividend payment

Packaging company Smurfit Kappa Group (SKG) has increased its final dividend to eight per cent, which the company said reflected the board’s confidence about SKG’s future.

The packaging company has also repaid all money it received from government support schemes relating to the pandemic.

SKG saw revenue of €8.5bn in its 2020 financial year, down six per cent on 2019. The group’s profit before income tax stood at €748m, down 10 per cent on 2019’s €1.06bn.

It reported EBITDA of €1,510 million for the year 2020, ahead of its stated guidance.

Group CEO Tony Smurfit said: “Driven by strong secular trends such as e-commerce and sustainability, the outlook for our industry is increasingly positive … The inherent strength of our business together with the recent capital raise provides us with an unrivalled platform to accelerate our vision and the Group’s next phase of growth and development.”

“While there remains some uncertainty on the impact and duration of COVID-19, the year has started well with the continuation of the demand trends seen during the last quarter.

“Reflecting the Board’s confidence in this performance and prospects for the business looking forward, the Board is proposing an increase in the final dividend of eight per cent to 87.4 cent per share.”