Dublin-based Smurfit Westrock said net sales for the first quarter of the year rose to $7.66 billion (€6.7 billion), following its merger last year that saw it create one of the largest packaging groups in the world.
Announcing its financial results for the first quarter of the year ended March 31st, 2025, the packaging giant said net income was $382 million, with a margin of 5 per cent. Adjusted earnings before interest, trade, depreciation and amortisation was $1.25 billion.
Operating profit was $553 million, with pretax profit at $390 million for the quarter.
Chief executive Tony Smurfit said that US orders for boxes have steadied again after “a lot of weakness” in March and early April amid falling consumer confidence.
“We did see a lot of weakness in March and the first two weeks of April. But it seems to be steadying,” Mr Smurfit told analysts on a call. “Order books improved in the second half of April. That gives us some encouragement.”
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.
Mr Smurfit said the first quarter performance was strong and in line with stated guidance.
“This performance was driven by good results across all three segments, with notable progress in North America, and is significantly ahead of the combined result for the prior year,” he said.
“I am especially pleased with how well the combination has come together, with strong operational and cultural integration taking place across all three regions. Coupled with our geographic footprint and our unrivalled portfolio of innovative and sustainable packaging solutions, we have a customer-focused and performance-driven team that is delivering for all stakeholders.”
Smurfit said its synergy programme was on track to deliver $400 million as planned, with approximately $350 million in the current year.
The company recently announced the closure of over 500,000 tons of paper capacity in North America, and said it would close two converting facilities in its North American region, with consultations to close two of its converting facilities in Europe, the Middle East and Africa, and Asia Pacific.
“To consolidate our leadership position and better support our customers, we have constructed two state-of-the-art converting plants in Washington and Wisconsin and are completing a new Bag-in-Box facility in South Carolina in our North American region,” Mr Smurfit said.
“Comparable investments in EMEA & APAC, in high-performing converting equipment, will reduce our cost base and strengthen our overall footprint in the region while in Latin America, we continue to invest in cost takeout and growth projects, for example, the biomass boiler in Colombia which is nearing completion.”
The company said it expected to incur additional economic downtime in the second quarter costing approximately $100 million over the first quarter, before the impact of the closures took hold.
“While the demand outlook is uncertain, we expect second quarter adjusted Ebitda to be approximately $1.2 billion and our current estimate for a full year adjusted Ebitda is between $5 billion and $5.2 billion,” Mr Smurfit said.
The board has approved a quarterly dividend of $0.4308 per share on its ordinary shares, payable on June 18th.
