Half Year Results 

Rising inputs hamper Smurfit

Rising inputs hamper Smurfit

Smurfit Kappa’s (SKG) profits at the half-year have been held in check by rising input costs, or more accurately, by the lag in passing them through to customers. The paper packaging group recorded a 4 per cent fall in cash profit to €569m (£509m) with the underlying margin contracting by 120 basis points to 13.4 per cent. The decline in reported cash profit was further impacted by a one-off pension gain of €12m in the corresponding period in 2016, although chief executive Tony Smurfit said trading was conducted “against a backdrop of continued and unprecedented recovered fibre cost inflation of approximately €75m year on year”.

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