Smurfit Westrock still sees up to $5.2bn of 2025 earnings
Smurfit Westrock
still expects to post full-year earnings growth of as much as 11 per cent to $5.2 billion (€4.5 billion), after reporting a 'significant improvement' in its North American operations.
The improvement essentially relates to legacy operations of the former Westrock company in the US, which Smurfit Kappa merged with last July to create the world's largest paper and packaging group.
Earnings before interest, tax, depreciation and amortisation (Ebitda) amounted to $1.21 billion for the second quarter of this year, Smurfit Westrock said in a statement on Wednesday. That was marginally higher than its forecast for a figure of $1.2 billion.
'This performance is driven by the significant improvement in our North American business and continued excellent results from our Latin American operations, somewhat offset by a resilient performance from our Emea and Apac businesses,' chief executive Tony Smurfit said.
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Emea stands for Europe, the Middle East and Africa, while Apac refers to the Asia-Pacific region.
Smurfit Westrock reiterated that it expects full-year Ebitda to amount to between $5 billion and $5.2 billion.
'With our geographic reach, unrivalled product portfolio and most importantly our people, we see extensive opportunities across all our regions,' said Mr Smurfit.
'In North America, we believe the implementation of our operating model will drive continued significant improvement. In our EMEA and APAC region, we have a well invested asset base and strong market positions, primed to take advantage of an improved demand environment. Latin America remains a region of substantial growth opportunities, both organic and inorganic.'
Inorganic growth typically refers to acquisitions.
Last July, Smurfit Kappa merged with Atlanta-based cardboard box-making rival Westrock, and moved its listing to the US. The move effectively doubled the company size, with more than $30 billion of annual revenues.
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