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04 Nov 2020 | 07:07

Smurfit Kappa to pay dividend after Q3 beats expectations

(Sharecast News) - Smurfit Kappa said trading in the third quarter beat its expectations and that it would pay a second interim dividend in line with previous distributions. The paper packaging company reported earnings earnings before interest, tax, depreciation and amortisation (Ebitda) of €390m (£351m) for the three months to the end of September. Ebitda for the first nine months of 2020 was €1.125bn and revenue was €6.312bn.

The FTSE 100 company predicted annual Ebitda between €1.46bn and €1.48bn - down from €1.65bn in 2019. It declared a second interim dividend of 27.9 cents a share.

Smurfit Kappa cancelled its 80.9 cents a share final dividend for 2019 in April because of the Covid-19 crisis. It paid that amount as an interim dividend for the first half as business recovered.

Chief Executive Tony Smurfit said: "The quality of our business and the strength of our people has produced an excellent performance in both the third quarter and the year-to-date. This second interim dividend, following the payment of an interim dividend in September, ensures the Group is aligned with the dividend payment cycles of previous years."

Smurfit said the third-quarter results reflected cost control and a recovery for its business in Europe and the Americas. The company produces cardboard packaging that is in demand for online deliveries and consumers turning away from plastic packing.

He said the company had developed new ways of working during the crisis and it would look for new ways to "further increase our operating efficiency and effectiveness". The company will announce costs and benefits with its annual results in February.

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