Smurfit Kappa has invested USD23.5 million to upgrade its Nuevo Laredo sheet plant in Mexico to become a fully integrated corrugated plant. The investment includes a state-of-the-art corrugator and extension of the building. The new machine, which began operating last week, will have the two-pronged benefits of reducing CO2 emissions by up to 40% and doubling production capacity. The Nuevo Laredo plant is located in the Tamaulipas region in Northeastern Mexico where Smurfit Kappa has strong partnerships in the industrial, electrical appliances and electronics sectors. The region represents 3.3% of the country’s GDP and is home to over 200 companies which manufacture products for the US. The increased capacity will streamline Smurfit Kappa’s operations in San Antonio, Texas where a fast-growing appetite for sustainable packaging is demanding larger production volumes.
The Group’s consolidated sales amounted to EUR 641.3 million in the first three months of 2021 and thus almost reached the previous year’s level (Q1 2020: EUR 646.6 million).
At EUR 61.2 million, the operating result was 5.2% or EUR 3.4 million below the previous year’s figure (Q1 2020: EUR 64.6 million). An increase in the packaging division was offset by a decline in the cartonboard division. The previous year included one-time expenses of EUR -8.6 million, which were divided equally between the two divisions. The Group’s operating margin was 9.6% (Q1 2020: 10.0%).
Financial income of EUR 0.5 million (Q1 2020: EUR 0.4 million) was offset by financial expenses of EUR -3.6 million (Q1 2020: EUR -2.1 million). The “other financial result – net” was EUR 0.5 million (Q1 2020: EUR -0.1 million).
Earnings before taxes were therefore 6.7% below the previous year’s figure at EUR 58.6 million (Q1 2020: EUR 62.8 million). Income taxes amounted to EUR 14.7 million (Q1 2020: EUR 17.7 million), resulting in an effective Group tax rate of 25.2% (Q1 2020: 28.2%).
The profit for the period fell slightly from EUR 45.1 million to EUR 43.9 million.
details at: https://www.mayr-melnhof.com/newsroom/presseaussendungen/ergebnisse-zum-1-quartal-2021/