Smurfit Kappa Full-Year Report 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
The Group reported EBITDA for the full year of €2,355 million, up 38% on 2021, with higher earnings in both Europe and the Americas. The Group EBITDA margin was 18.4%, up from 16.8% in 2021. This result reflects not only the essential nature of our products but the demand from our customers for the most sustainable, reliable and innovative packaging solutions. The result also demonstrates SKG’s ability to recover significant input cost pressures, the benefits from our investment programmes and the dedication of our 48,000 employees.
In Europe, EBITDA increased by 42% to €1,846 million for the year. The EBITDA margin was 18.6%, up from 16.6% in 2021, reflecting the impact of higher paper and corrugated prices partly offset by higher energy, recovered fibre and other raw material costs. Corrugated box volumes were down 2% in 2022 against a strong prior year comparative, with a slowdown in our German and UK markets in particular, being partly offset by a more robust performance in countries such as France and Spain.
Revenue for the full year was €12,815 million, up 27% on the prior year on a reported basis and up 23% on an underlying basis. Revenue in Europe was up 26%, driven primarily by input cost recovery through progressive box price increases. On an underlying basis, revenue in Europe was up 24%. In the Americas, revenue was up 29% on 2021, or 16% on an underlying basis.
