Packaging company Smurfit Kappa (LON: SKG), listed on FTSE, saw its stock bounce back to about 5% on Wednesday morning.
The company, which posted an EBITDA of 1.13 billion euros since the start of the year, boasted a “particularly pleasant” EBITDA with its EBITDA margin of 17.8% and a third-quarter EBITDA of 390 million euros. The company said the advancement demonstrates “group strength and resilience” from both an operational and economic perspective.
Smurfit Kappa added that the results reflect the benefits of capital allocation decisions, cost management, geographic reach and recovery across the US and US businesses. The powerful data says it highlights its support of 65,000 customers for its innovation, supply chain management and sustainability qualifications.
The company said its current business is “strongly weighted” to FMCG customers. There, they feel it is suitable for exploiting e-commerce and innovative packaging needs. It added that it will implement a programme that will explore ways to implement new ways of working during the pandemic and further improve operational efficiency and effectiveness.
Responding to the company’s progress and year-round goals, the company’s CEO Tony Smurfit commented.
“We are pleased to report that the quality of our business and the strength of our people have produced excellent performance in both the third quarter and the year. There will be some uncertainty in the evolutionary evolution of the impact of Covid-19 in the coming weeks, but there will be no dramatic changes in labor practices, but the group hopes to offer EBITDA in the full year of 2020, ranging from 146 million to 14.8 million.”
“We are increasingly excited about the driving forces of business structural growth, including our future outlook and our ability to leverage these opportunities, such as e-commerce and sustainable packaging. We are recommending a second interim dividend of 27.9 cents per share, reflecting the board’s confidence in SKG’s performance and outlook. Following the provisional dividend payments in September, this second interim dividend will ensure that the group is consistent with past dividend payment cycles. It is proposed that on December 11, 2020, all common shareholders of the stock register at closing on November 20, 2020.”
Following the update, Smurfit Kappa shares bounced around 5% at lunch on Wednesday, with a maximum of 3,258.00 pa share of 04/11/20. This price is ahead of other prices posted in the previous year, with the analyst’s stock target price of 3,150p.
The company has a “purchase” rating from analysts, with an AP/E ratio of 17.13, lagging behind a consumer circulation average of 31.19 and an “outperform” rating of 56.53% from the market beat community.
