Mexico is the second largest economy in Latin America, after Brazil, and has an ideal location for accessing the US market. It is becoming increasingly attractive for global companies that are nearshoring by moving production away from Asia to the north part of the country, between the cities of Monterrey and Tijuana. The Mexican economy is estimated to grow up to 3.0% both this year and next, boosted by increased manufacturing investment, according to the most up-to-date government forecast*. Smurfit Kappa’s latest USD12 million investment in its Tijuana plant includes new machinery and process upgrades which will significantly increase both printing quality and efficiency. Laurent Sellier, Smurfit Kappa CEO of the Americas, commented: “Mexico is an important market for Smurfit Kappa. We have invested substantial resources both in paper machines and corrugated plants while increasing our network to support the country’s economy and our customers’ needs.
Smurfit Kappa Group plc (‘SKG’, ‘Smurfit Kappa’ or ‘the Group’) today announced a trading update for the 3 months to 31 March 2023.
First Quarter Overview
*EBITDA growth of 13% to €579 million with an EBITDA margin of 19.3%
*ROCE of 21.6%
*Net Debt to EBITDA ratio of 1.2x
*Finalised exit from Russian business
Tony Smurfit, Group CEO, commented:
“Smurfit Kappa is reporting another strong performance for the first quarter with EBITDA of €579 million, an EBITDA margin of 19.3%, a ROCE of 21.6% and a net debt to EBITDA of 1.2x. This performance reflects the continuing benefits of our integrated model, the effectiveness of our capital spend, our constant focus on innovation for customers and our geographic footprint.
“Together with the commitment and dedication of our people and our performance-led culture, these attributes have enabled us to continue to deliver in an environment where volumes were lower than the previous year.
“As anticipated, first quarter demand was broadly in line with the fourth quarter of 2022. We expect the demand environment to improve as the year progresses and SKG is well placed across our geographies to take advantage of this.
details at: https://www.smurfitkappa.com/-/m/files/investor-presentations-and-press-releases/2023/skg_trading_update_pr_q1_-2023.pdf?rev=b1b82ed231094970b7cf806bedd4c5fb&hash=D66941F0185F5C2E00BE3AEE88099780