Packaging company Smurfit Kappa Group plc has released its Q3 trading update for the nine months to 30th September 2023, boasting an EBITDA (earnings before interest, taxes, depreciation and amortisation) of €1,625 million with a margin of 19.0%.

The company said its net debt was to an EBITDA ratio of 1.4x, with a return on capital employed (ROCE) of 18% reflecting the “ongoing benefit” of capital plans and “operating excellence”.

Tony Smurfit, group CEO, commented: “We are pleased to report an excellent performance for the first nine months with EBITDA of €1,625 million, an EBITDA margin of 19.0%, a ROCE of 18.0% and a net debt to EBITDA of 1.4x.

“These results continue to demonstrate the effectiveness of our multi-year capital plans, our geographic footprint and the service and dedication of our people. SKG provides its customers with innovative and sustainable products, delivered and supported by the security of our integrated model.

“Box demand in the third quarter for the Group was approximately 2% behind 2022 levels versus a negative 7% and 5% in the first and second quarters respectively. We expect this trend to continue, with Germany in particular showing improved order books.

“On 12th September, Smurfit Kappa and WestRock announced an agreement to combine to create Smurfit WestRock, a global leader in sustainable fibre-based packaging. This combination represents a unique point in time, value creation opportunity, for both companies. We are increasingly excited to create the ‘Go-To’ fibre-based packaging partner of choice for all stakeholders.

“Our consistent delivery, over many years, demonstrates the quality of our business and the capital allocation decisions we have made. For the full year 2023 we expect to deliver EBITDA of approximately €2,050 million.”