TIDMSKG
2011 First Quarter Results
6 May 2011: Smurfit Kappa Group plc ("SKG" or the "Group"), one
of the world's largest integrated manufacturers of paper-based
packaging products, with operations in Europe and Latin America,
today announced results for the 3 months ending 31 March 2011.
2011 First Quarter | Key Financial Performance Measures
EUR m Q1 2011 Q1 2010 Change Q4 2010 Change
Revenue EUR1,803 EUR1,530 18% EUR1,749 3%
EBITDA before Exceptional EUR243 EUR184 32% EUR257 (5%)
Items and
Share-based Payment Expense(1)
EBITDA Margin 13.5% 12.0% - 14.7% -
Operating Profit before EUR148 EUR87 69% EUR140 5%
Exceptional Items
Basic Earnings/(Loss) 15.6 (7.0) - 23.3 (33%)
Per Share (EUR cent)
Free Cash Flow(2) EUR12 EUR(58) - EUR23 (48%)
Net Debt EUR3,061 EUR3,162 (3%) EUR3,110 (2%)
Net Debt to EBITDA (LTM) 3.2x 4.2x - 3.4x -
(1) EBITDA before exceptional items and share-based payment
expense is denoted by EBITDA throughout the remainder of the
management commentary for ease of reference. A reconciliation of
profit/(loss) for the period to EBITDA before exceptional items and
share-based payment expense is set out on page 24.
(2) Free cash flow is set out on page 7. The IFRS cash flow is
set out on page 13.
Highlights
-- Sustained progressive volume and pricing recovery delivering 18%
revenue growth year-on-year
-- 32% year-on-year increase in EBITDA to EUR243 million despite sharply
higher input costs
-- Net debt reduced EUR49 million in the quarter. Further meaningful
deleveraging expected through 2011
-- Ongoing input cost increases underpin continued pricing momentum
Performance Review and Outlook
Gary McGann, Smurfit Kappa Group CEO, commented: "In the first
quarter of 2011 the Group reported continued performance recovery
with revenue growth of 18% and EBITDA growth of 32% year-on-year.
The Group also reported a relatively strong cash flow performance
and a EUR49 million reduction in net debt in the period, bringing
its net debt to EBITDA ratio to 3.2x.
SKG experienced good demand growth in the first quarter, and
price recovery in our end markets continued to be achieved at a
satisfactory level. However, the increase in raw materials, energy
and other costs has proven sharper and more sustained than
previously expected, thereby causing some near-term margin
pressure. This resulted in two additional recycled containerboard
price increases being implemented to date in 2011, which will
require continued corrugated price recovery in the remainder of the
year.
Entering the second quarter, while demand remains good, input
costs have risen further, which if sustained will require
additional price increases. Higher end-product prices, together
with SKG's continuing focus on operating efficiency and strong
financial discipline should deliver earnings growth and meaningful
debt paydown in 2011. The Group's continued de-leveraging will
expand its available range of strategic and financial options."
About Smurfit Kappa Group
Smurfit Kappa Group is a world leader in paper-based packaging
with operations in Europe and Latin America. Smurfit Kappa Group
operates in 21 countries in Europe and is the European leader in
containerboard, solidboard, corrugated and solidboard packaging and
has a key position in several other packaging and paper market
segments, including graphicboard and sack paper. Smurfit Kappa
Group also has a good base in Eastern Europe and operates in 9
countries in Latin America where it is the only pan-regional
operator.
Forward Looking Statements
Some statements in this announcement are forward-looking. They
represent expectations for the Group's business, and involve risks
and uncertainties. These forward-looking statements are based on
current expectations and projections about future events. The Group
believes that current expectations and assumptions with respect to
these forward-looking statements are reasonable. However, because
they involve known and unknown risks, uncertainties and other
factors, which are in some cases beyond the Group's control, actual
results or performance may differ materially from those expressed
or implied by such forward-looking statements.
Contacts
Bertrand Paulet FD K Capital Source
Smurfit Kappa Group
Tel: +353 1 202 71 80 Tel: +353 1 663 36 80
E-mail: ir@smurfitkappa.com E-mail: smurfitkappa@kcapitalsource.com
2011 First Quarter | Performance Overview
Demand for the Group's products remained strong in the first
quarter of 2011. As a result, compared to the first quarter of
2010, SKG's corrugated volumes were 4% higher when excluding the
acquisition of Mondi's UK corrugated operations in 2010 (or 7%
higher in total). Compared to the fourth quarter of 2010, SKG's
European corrugated volumes were 1% higher.
Despite significantly higher input costs across all headings
year-on-year, SKG's EBITDA margin of 13.5% in quarter one 2011
improved by 1.5% compared to quarter one 2010. This primarily
reflects the benefits of increased corrugated prices in Europe, a
continued focus on operating efficiency with a further EUR17
million of cost take-out delivered in the quarter, and a good
improvement in SKG's Specialties business.
As expected, rising input costs continue to be successfully
recovered through corrugated pricing, in line with the usual six
months time lag. At the end of March 2011, SKG's European
corrugated prices were 19% higher than at the 2009 low point.
However, the Group's first quarter 2011 EBITDA margin was lower
than in the fourth quarter of 2010, reflecting a significantly
higher than expected rise in raw materials and other costs since
the beginning of the year.
Compared to quarter four 2010, raw materials costs were 10%
higher in quarter one, while energy costs were 5% higher. The
upward cost pressure continued into April. While generating
near-term margin pressure, a rising input cost environment combined
with sustained demand growth and low inventory levels provides a
clear platform for the necessary higher product pricing.
In that context, and in viewing the supply demand balance in the
European containerboard market, it is worth noting that only one
new recycled containerboard machine is currently expected to be
built in Europe in 2012, with one more in 2013. Furthermore, the
lower availability and higher cost of fibre has raised the barriers
to entry for new capacity, which could prove to be beneficial for
the medium term supply outlook of the industry.
Since the beginning of 2011, two new recycled containerboard
price increases have been implemented in Europe, totalling EUR70
per tonne (approximately 16% increase). Consequently, SKG's
priority through 2011 remains one of offsetting higher input costs
through box price increases.
The Group's Latin American EBITDA margin of 16.7% in the first
quarter was slightly lower year-on-year, primarily reflecting
planned maintenance downtime in SKG's main Colombian paper mill
complex in March 2011. In the first quarter of 2011, SKG's
corrugated volumes in the Latin American region were 3% higher
year-on-year, and 6% higher than in the fourth quarter of 2010.
Against a backdrop of increasing working capital requirements,
the Group's positive free cash flow together with favourable
currency movements contributed to reduce net debt by EUR49 million
in the first quarter. Compared to March 2010 levels, the Group's
net debt reduced by EUR101 million, which combined with improved
earnings supported a reduction of its net debt to EBITDA ratio from
4.2x to 3.2x in March 2011.
Through the cycle, SKG's focus is to generate superior returns,
underpinned by a strong set of operating and financial disciplines.
These include an unrelenting focus on cost efficiency, efficient
capacity management and maximising cash flow generation.
2011 First Quarter | Financial Performance
At EUR1,803 million for the first quarter of 2011, sales revenue
was 18% higher than in the first quarter of 2010. However, allowing
for the positive impact of currency and hyperinflation accounting
of EUR23 million, offset by the net impact of acquisitions and
disposals of EUR9 million, the underlying increase in revenue was
EUR259 million, the equivalent of approximately 17%.
Compared to the fourth quarter of 2010, sales revenue in the
first quarter of 2011 was EUR54 million higher. Allowing for the
negative impact of currency and hyperinflation accounting of EUR13
million and for EUR4 million in respect of disposals, the
underlying increase was EUR71 million, the equivalent of 4%.
At EUR243 million, EBITDA in the first quarter of 2011 was EUR59
million higher than the first quarter of 2010. Allowing for the
positive impact of currency and for the disposal of loss making
operations, underlying EBITDA increased by EUR53 million
year-on-year, the equivalent of 29%. Compared to the fourth quarter
of 2010, EBITDA decreased by EUR14 million. With currency and
disposals having a modest impact quarter-on-quarter, the underlying
decrease was EUR13 million, the equivalent of 5%.
Exceptional items charged within operating profit of EUR1
million in the first quarter of 2011 related to the ongoing
rationalisation in the European corrugated operations. Exceptional
items charged within operating profit of EUR14 million in 2010
related to the loss on US dollar denominated net trading balances
in SKG's Venezuelan operation as a result of the devaluation of the
Venezuelan currency.
Despite a higher level of profit before tax, EPS of 15.6 cent in
the first quarter was lower than in the fourth quarter of 2010.
This primarily reflects a EUR23 million tax charge arising from the
implementation of additional temporary taxes in Colombia on 1
January, which although payable over the next four years is
required to be fully expensed in quarter one 2011 under IFRS.
2011 First Quarter | Free Cash Flow
Compared to a net outflow of EUR58 million reported in the first
quarter of 2010, the Group reported a positive free cash flow
generation of EUR12 million in the first quarter of 2011. This
primarily reflected the 32% increase in SKG's EBITDA and lower
interest costs year-on-year, somewhat offset by higher working
capital outflows.
The Group's absolute working capital level increased by EUR86
million in quarter one 2011, primarily reflecting improved volumes
and higher raw material and end-product prices. However, at 9.2% of
annualised sales revenue, SKG's working capital ratio at the end of
March 2011 was stable compared to the March 2010 level.
Capital expenditure of EUR54 million in the first quarter of
2011 equated to 62% of depreciation, compared to 40% in the first
quarter of 2010. As previously advised, in 2011 SKG expects to
increase its capital expenditure back towards its normalised level
of approximately 90% of depreciation, which will result in
increasing capital expenditure as the year progresses.
Cash interest of EUR61 million in the first quarter of 2011 was
EUR5 million lower than in the first quarter of 2010, primarily
reflecting a lower average interest cost year-on-year.
Tax payments of EUR10 million in the first quarter of 2011 were
EUR3 million higher than in 2010.
In 2011, the Group currently expects to deliver materially
stronger free cash flow generation than in 2010, supported by
higher earnings and lower cash interest, somewhat offset by higher
capital expenditure.
2011 First Quarter | Capital Structure
The Group's net debt reduced by EUR49 million to EUR3,061
million in the first quarter, mainly reflecting SKG's positive free
cash flow performance of EUR12 million, combined with EUR31 million
of favourable currency movements and EUR4 million in proceeds from
the divestment of an associate shareholding. The positive currency
movement in the quarter reflects the relative strength of the euro
against the US dollar.
Compared to March 2010, net debt at the end of March 2011 was
EUR101 million lower, the equivalent of a 3% reduction. It is worth
bearing in mind that the year-on-year reduction in net debt was
achieved after a EUR56 million cash outflow relating to the asset
swap with Mondi in 2010. This positive outcome demonstrates SKG's
continuing focus on delivering positive cash flow generation
through the cycle.
The Group continues to benefit from its average debt maturity
profile of 5 years, with no material maturities before December
2013. In addition, SKG currently has EUR553 million of cash on its
balance sheet, with committed undrawn credit facilities of
approximately EUR525 million.
At the end of March 2011, the Group's net debt to EBITDA ratio
reduced to 3.2x from 4.2x at the end of March 2010 and 3.4x at the
end of December 2010. A reducing leverage, combined with a strong
liquidity position, a good maturity profile and diversified funding
sources, provide SKG with improving financial flexibility. The
Group's strategic priority for 2011 remains one of maximising free
cash flow generation for further debt paydown.
2011 First Quarter | Operating efficiency
The Group's previous 3-year cost take-out programme was
successfully completed in 2010 and generated EUR306 million of cost
savings, which significantly strengthened the competitiveness of
SKG's operating system. The Group's increasingly efficient cost
base is a material contributor to its continuing relatively strong
margin performance, and should allow it to continue to deliver
higher returns.
In 2011, the Group has introduced a new 2-year initiative, with
a target to generate EUR150 million of cost savings by the end of
2012. This new programme generated EUR17 million of cost savings
benefits in the first quarter of 2011, which partially mitigated
the significant rise in input costs experienced in the period.
In addition to its continued focus on operating excellence,
SKG's sustained performance through the cycle also reflects its
strong commitment to provide customers with innovative, sustainable
and cost efficient paper-based packaging solutions. The Group is
uniquely equipped to provide industry leading customer service,
supported by its unrivalled geographical footprint, its state of
the art design capabilities and its broad-based product offering.
SKG is committed to continue investing to meet and exceed
customers' requirements.
2011 First Quarter | Performance Review
Packaging: Europe
Following the 4% underlying demand growth experienced in the
full year 2010, demand for SKG's corrugated packaging solutions
remained strong through the first quarter of 2011. Despite much
tougher comparators, SKG's underlying corrugated volumes in quarter
one were also 4% higher than in the first quarter of 2010. SKG's
businesses in Germany, France and Spain in particular experienced
strong demand growth in the period. Including the acquisition of
Mondi's operations in the UK in May 2010, first quarter corrugated
volumes were 7% higher year-on-year.
Corrugated prices continued to recover at a steady pace into
2011. As a result, the Group's European corrugated prices in the
first quarter were on average 3% higher compared to the fourth
quarter of 2010. Higher prices however were not sufficient to fully
offset the greater than expected increase in all input costs since
the beginning of the year. This resulted in European Packaging
EBITDA margins contracting from 15.2% in quarter four 2010 to 14.0%
in quarter one 2011.
The Group's margin in the first quarter of 2011 was also
affected by a strike in its kraftliner mill in France, and by the
large maintenance downtime relating to the successful re-build of
its Hoya recycled mill in Germany. This re-build further enhances
the cost efficiency of SKG's integrated mill system, and increases
its level of self-sufficiency in lightweight recycled
containerboard.
Recovered fibre prices in the first quarter increased by
approximately 15% compared to the fourth quarter of 2010, reaching
an all time high level of EUR150 per tonne in March. In April,
European recovered fibre prices have increased further and now
exceed EUR160 per tonne primarily driven by strong incremental
demand from Eastern European countries. Demand from Chinese buyers
was slightly lower year-on-year in quarter one.
In the first quarter of 2011, SKG also experienced sequential
increases of 4% in wood costs, 18% in starch costs and 6% in energy
costs compared to the fourth quarter of 2010.
While generating some near term margin compression within SKG's
system, higher input costs, combined with good demand in the
European market provide a strong platform for continued pricing
recovery. As a result, following recycled containerboard price
increases of EUR195 per tonne reported through 2010, a further
EUR40 per tonne price increase was successfully implemented in the
first quarter of 2011, and an additional EUR30 per tonne was
implemented in April.
Those recently implemented containerboard price increases
generate significant pressure on corrugated producers' earnings,
which will result in the Group pursuing additional corrugated
pricing through the remainder of 2011. As is normal, it takes up to
six months to fully offset higher containerboard prices through
corrugated price recovery.
In that context, having achieved a 19% price recovery from the
low point in 2009 to the end of March 2011, a further 7% corrugated
price increase will be required in order to recover the
containerboard price increases which were implemented in February
and April this year.
On the kraftliner side, public market indices reported a EUR250
per tonne cumulative price increase from the low point in 2009 to
the end of 2010. Higher US imports in quarter four 2010 generated
some downward pressure on European kraftliner prices however, which
led to a EUR20 per tonne price decline in public market indices in
January 2011. Lower prices combined with higher wood costs
negatively impacted profitability of the Group's external sales of
kraftliner in the first quarter of 2011. In April 2011 however, SKG
successfully implemented a white-top kraftliner price increase.
SKG will be taking 70,000 tonnes of maintenance-related downtime
at its Swedish kraftliner mill in August 2011, which will
significantly reduce European kraftliner production during the
summer.
In April 2011 demand has remained strong but cost headwinds, if
sustained, will require further pricing initiatives.
Packaging: Latin America
In the first quarter, Latin American EBITDA of EUR50 million was
20% higher year-on-year, and represented 20% of the Group's total
EBITDA. While higher than the Group's other businesses, SKG's Latin
American EBITDA margin of 16.7% in the period was slightly lower
than the 17.0% delivered in the first quarter of 2010. This
year-on-year reduction primarily reflected lower margins in
Colombia and Venezuela, somewhat offset by improved performances in
Mexico and Argentina.
While SKG's corrugated volumes in Colombia were 8% higher
year-on-year in the first quarter, pricing was relatively stable,
highlighting moderate inflation in the country and aggressive price
action from competitors. SKG's first quarter Colombian performance
was also negatively impacted by planned maintenance downtime at its
large paper mill complex in Cali. The mill restarted successfully
at the end of March and higher margins are expected to be restored
in the second quarter.
In the challenging Venezuelan market, following a 7% demand
decline in 2010, SKG experienced a positive year-on-year corrugated
volume growth of 4% in the first quarter of 2011. Continuing high
inflation in the country was partly offset by SKG's ongoing efforts
to enhance its operating efficiency.
SKG's Mexican EBITDA was materially higher year-on-year in the
first quarter. Corrugated volumes were 1% lower, largely as a
result of a poor 2011 agricultural season (due to severe weather).
However, prices were materially higher, which combined with SKG's
continuing focus on operating efficiency more than offset the rise
in input costs.
Cost pressures, especially for recovered paper, continued to
prevail in Argentina in the first quarter, although at a somewhat
slower pace than in 2010. After a 14% demand growth in 2010, the
Group's corrugated volumes in the country continued to increase in
the year to date. Materially higher prices year-on-year supported
strong EBITDA growth in the quarter.
Despite some country-specific challenges from time to time, the
Group believes that the geographic diversity of its business in the
Latin American region, together with the proven ability of its
management team to drive the business and grow its earnings, will
continue to deliver a strong performance through the cycle.
Specialties: Europe
Following an unsustainably low performance in the first quarter
of 2010, SKG's Specialties EBITDA of
EUR15 million in the first quarter of 2011 was 66% higher. The
year-on-year progress primarily reflects higher volumes across all
Specialties' businesses, improved margins for solidboard as a
result of increased prices, and the absence of the loss making sack
converting operations which were divested in May 2010. The Group's
bag-in-box division continued to perform in the first quarter.
As a result of the successful board price increases of EUR100
per tonne in 2010, as expected prices for SKG's solidboard
packaging products increased significantly at the beginning of
2011, thereby contributing to somewhat offset higher input costs.
Further increases in recovered paper and energy in the first
quarter of 2011 have caused the Group to announce further board
price increases in quarter two.
Summary Cash
Flows
Summary cash flows for the first quarter
are set out in the following table.
3 months to 3 months to
31-Mar-11 31-Mar-10
EURm EURm
Pre-exceptional EBITDA 243 184
Exceptional items - (14)
Cash interest expense (61) (66)
Working capital change (86) (64)
Current provisions (3) (6)
Capital expenditure (54) (34)
Change in capital creditors (6) (33)
Sale of fixed assets 1 1
Tax paid (10) (7)
Other (12) (19)
Free cash flow 12 (58)
Share issues 7 2
Sale of businesses and investments 4 -
Purchase of investments (1) (1)
Derivative termination receipts - 1
Net cash inflow/(outflow) 22 (56)
Deferred debt issue costs amortised (4) (5)
Currency translation adjustments 31 (49)
Decrease/(increase) in net debt 49 (110)
(1) The summary cash flow is prepared on a different basis to
the cash flow statement under IFRS.
The principal difference is that the summary cash flow details
movements in net debt while the IFRS cash flow details movement in
cash and cash equivalents. In addition, the IFRS cash flow has
different sub-headings to those used in the summary cash flow. A
reconciliation of the free cash flow to cash generated from
operations in the IFRS cash flow is set out below.
3 months to 3 months to
31-Mar-11 31-Mar-10
EURm EURm
Free cash 12 (58)
flow
Add Cash interest 61 66
back:
Capital expenditure (net of change in capital creditors) 60 67
Tax payments 10 7
Less: Sale of fixed assets (1) (1)
Profit on sale of assets and businesses - non exceptional (5) (4)
Cash generated from 137 77
operations
Capital Resources
The Group's primary sources of liquidity are cash flows from
operations and borrowings under the revolving credit facility. The
Group's primary uses of cash are for debt service and capital
expenditure.
At 31 March 2011 Smurfit Kappa Funding plc had outstanding
EUR217.5 million 7.75% senior subordinated notes due 2015 and
US$200 million 7.75% senior subordinated notes due 2015. In
addition Smurfit Kappa Treasury Funding Limited had outstanding
US$292.3 million 7.50% senior debentures due 2025 and the Group had
outstanding EUR168.5 million variable funding notes issued under
the new EUR250 million accounts receivable securitisation program
maturing in November 2015.
Smurfit Kappa Acquisitions had outstanding EUR500 million 7.25%
senior secured notes due 2017 and EUR500 million 7.75% senior
secured notes due 2019. Smurfit Kappa Acquisitions and certain
subsidiaries are also party to a senior credit facility. The senior
credit facility comprises a EUR164 million amortising Tranche A
maturing in 2012, an EUR815 million Tranche B maturing in 2013 and
an EUR813 million Tranche C maturing in 2014. In addition, as at 31
March 2011, the facility included a EUR525 million revolving credit
facility, none of which was drawn.
The following table provides the range of interest rates as of
31 March 2011 for each of the drawings under the various senior
credit facility term loans.
BORROWING ARRANGEMENT CURRENCY INTEREST RATE
Term Loan A EUR 3.655% - 3.662%
Term Loan B EUR 3.99% - 4.295%
USD 3.428%
Term Loan C EUR 4.244% - 4.545%
USD 3.678%
Borrowings under the revolving credit facility are available to
fund the Group's working capital requirements, capital expenditures
and other general corporate purposes.
Market Risk and Risk Management Policies
The Group is exposed to the impact of interest rate changes and
foreign currency fluctuations due to its investing and funding
activities and its operations in different foreign currencies.
Interest rate risk exposure is managed by achieving an appropriate
balance of fixed and variable rate funding. At 31 March 2011 the
Group had fixed an average of 77% of its interest cost on
borrowings over the following twelve months.
The Group's fixed rate debt comprised mainly EUR500 million
7.25% senior secured notes due 2017, EUR500 million 7.75% senior
secured notes due 2019, EUR217.5 million 7.75% senior subordinated
notes due 2015, US$200 million 7.75% senior subordinated notes due
2015 and US$292.3 million 7.50% senior debentures due 2025. In
addition the Group also has EUR1,110 million in interest rate swaps
with maturity dates ranging from April 2012 to July 2014.
The Group's earnings are affected by changes in short-term
interest rates as a result of its floating rate borrowings. If
LIBOR interest rates for these borrowings increase by one percent,
the Group's interest expense would increase, and income before
taxes would decrease, by approximately EUR9 million over the
following twelve months. Interest income on the Group's cash
balances would increase by approximately EUR5 million assuming a
one percent increase in interest rates earned on such balances over
the following twelve months.
The Group uses foreign currency borrowings, currency swaps,
options and forward contracts in the management of its foreign
currency exposures.
Group Income Statement - First Quarter
Unaudited Unaudited
3 months to 31-Mar-11 3 months to 31-Mar-10
Pre-exceptional 2011 Exceptional 2011 Total 2011 Pre-exceptional 2010 Exceptional 2010 Total 2010
EURm EURm EURm EURm EURm EURm
Continuing
operations
Revenue 1,803 - 1,803 1,530 - 1,530
Cost of (1,296) - (1,296) (1,106) - (1,106)
sales
Gross 507 - 507 424 - 424
profit
Distribution (139) - (139) (135) - (135)
costs
Administrative (220) - (220) (208) (14) (222)
expenses
Other - - - 6 - 6
operating
income
Other - (1) (1) - - -
operating
expenses
Operating 148 (1) 147 87 (14) 73
profit
Finance (114) - (114) (133) - (133)
costs
Finance 43 - 43 57 - 57
income
Profit on 2 - 2 - - -
disposal
of
associate
Profit/(loss) 79 (1) 78 11 (14) (3)
before
income tax
Income tax (49) (14)
expense
Profit/(loss) 29 (17)
for the
financial
period
Attributable
to:
Owners 34 (15)
of the
Parent
Non-controlling (5) (2)
interests
Profit/(loss) 29 (17)
for the
financial
period
Earnings
per
share:
Basic 15.6 (7.0)
earnings/(loss)
per share
- cent
Diluted 15.3 (7.0)
earnings/(loss)
per share-
cent
Group Statement of Comprehensive Income
Unaudited Unaudited
3 months to 3 months to
31-Mar-11 31-Mar-10
EURm EURm
Profit/(loss) for the financial period 29 (17)
Other comprehensive income:
Foreign currency translation adjustments (47) (108)
Defined benefit pension plans:
- Actuarial (loss)/gain including payroll tax (24) 27
- Movement in deferred tax 3 (6)
Effective portion of changes in fair
value of cash flow hedges:
- Movement out of reserve 6 7
- New fair value adjustments into reserve 21 (20)
- Movement in deferred tax (3) 2
Total other comprehensive income (44) (98)
Comprehensive income and expense (15) (115)
for the financial period
Attributable to:
Owners of the Parent (2) (108)
Non-controlling interests (13) (7)
(15) (115)
Group Balance Sheet
Unaudited Unaudited Audited
31-Mar-11 31-Mar-10 31-Dec-10
EURm EURm EURm
ASSETS
Non-current assets
Property, plant and equipment 2,956 2,970 3,008
Goodwill and intangible assets 2,193 2,201 2,209
Available-for-sale financial assets 32 32 32
Investment in associates 14 14 16
Biological assets 85 85 88
Trade and other receivables 4 4 5
Derivative financial instruments - - 2
Deferred income tax assets 125 273 134
5,409 5,579 5,494
Current assets
Inventories 685 608 638
Biological assets 7 10 7
Trade and other receivables 1,399 1,207 1,292
Derivative financial instruments 5 6 8
Restricted cash 12 46 7
Cash and cash equivalents 541 548 495
2,649 2,425 2,447
Non-current assets held for sale - 3 -
Total assets 8,058 8,007 7,941
EQUITY
Capital and reserves attributable
to the owners of the Parent
Equity share capital - - -
Capital and other reserves 2,308 2,242 2,315
Retained earnings (524) (658) (552)
Total equity attributable to 1,784 1,584 1,763
the owners of the Parent
Non-controlling interests 162 172 173
Total equity 1,946 1,756 1,936
LIABILITIES
Non-current liabilities
Borrowings 3,459 3,590 3,470
Employee benefits 606 620 595
Derivative financial instruments 104 79 101
Deferred income tax liabilities 198 312 206
Non-current income tax liabilities 9 15 9
Provisions for liabilities and charges 47 42 49
Capital grants 14 13 14
Other payables 7 6 7
4,444 4,677 4,451
Current liabilities
Borrowings 155 166 142
Trade and other payables 1,427 1,255 1,351
Current income tax liabilities 42 39 5
Derivative financial instruments 18 74 27
Provisions for liabilities and charges 26 40 29
1,668 1,574 1,554
Total liabilities 6,112 6,251 6,005
Total equity and liabilities 8,058 8,007 7,941
Group Statement of Changes in Equity (Unaudited)
Capital and other reserves
Equity share capital Share premium Reverse acquisition reserve Cash flow hedging reserve Foreign currency translation reserve Reserve for share-based payment Retained earnings Total equity attributable to Non-controlling interests Total equity
the owners of the Parent
EURm EURm EURm EURm EURm EURm EURm EURm EURm EURm
At 1 January 2011 - 1,937 575 (45) (216) 64 (552) 1,763 173 1,936
Shares issued - 7 - - - - - 7 - 7
Total comprehensive - - - 24 (39) - 13 (2) (13) (15)
income and expense
Hyperinflation adjustment - - - - - - 15 15 2 17
Share-based payment - - - - - 1 - 1 - 1
At 31 March 2011 - 1,944 575 (21) (255) 65 (524) 1,784 162 1,946
At 1 January 2010 - 1,928 575 (44) (174) 60 (669) 1,676 179 1,855
Shares issued - 2 - - - - - 2 - 2
Total comprehensive - - - (11) (103) - 6 (108) (7) (115)
income and expense
Hyperinflation adjustment - - - - - - 13 13 1 14
Purchase of non-controlling - - - - - - - - (1) (1)
interests
Other movements - - - - 8 - (8) - - -
Share-based payment - - - - - 1 - 1 - 1
At 31 March 2010 - 1,930 575 (55) (269) 61 (658) 1,584 172 1,756
Group Cash Flow Statement
Unaudited Unaudited
3 months to 3 months to
31-Mar-11 31-Mar-10
EURm EURm
Cash flows from operating activities
Profit/(loss) for the financial period 29 (17)
Adjustment for
Income tax expense 49 14
Profit on sale of assets and businesses (2) (4)
Equity settled share-based 1 1
payment transactions
Amortisation of intangible assets 7 12
Profit on disposal of associates (2) -
Depreciation charge 82 82
Net finance costs 71 76
Change in inventories (55) (37)
Change in biological assets 5 2
Change in trade and other receivables (131) (124)
Change in trade and other payables 97 97
Change in provisions (3) (7)
Change in employee benefits (14) (14)
Foreign currency translation adjustments 1 (3)
Other 2 (1)
Cash generated from operations 137 77
Interest paid (46) (49)
Income taxes paid:
Overseas corporation tax (net (10) (7)
of tax refunds) paid
Net cash inflow from operating activities 81 21
Cash flows from investing activities
Interest received 1 2
Purchase of property, plant and equipment (60) (65)
and biological assets
Purchase of intangible assets - (2)
Increase in restricted cash (5) (3)
Disposal of property, plant and equipment 6 5
Disposal of associates 4 -
Purchase of non-controlling interests - (1)
Deferred consideration (1) -
Net cash outflow from investing activities (55) (64)
Cash flow from financing activities
Proceeds from issue of new ordinary shares 7 2
Increase/(decrease) in interest-bearing 20 (2)
borrowings
Repayment of finance lease liabilities (2) (3)
Derivative termination receipts - 1
Deferred debt issue costs - (1)
Net cash inflow/(outflow) from 25 (3)
financing activities
Increase/(decrease) in cash 51 (46)
and cash equivalents
Reconciliation of opening to closing
cash and cash equivalents
Cash and cash equivalents at 1 January 481 587
Currency translation adjustment (4) (11)
Increase/(decrease) in cash 51 (46)
and cash equivalents
Cash and cash equivalents at 31 March 528 530
1.General Information
Smurfit Kappa Group plc ("SKG plc") ("the Company") ("the
Parent") and its subsidiaries (together "the Group") manufacture,
distribute and sell containerboard, corrugated containers and other
paper-based packaging products such as solidboard and graphicboard.
The Company is a public limited company incorporated and tax
resident in Ireland. The address of its registered office is Beech
Hill, Clonskeagh, Dublin 4, Ireland.
2.Basis of Preparation
The annual consolidated financial statements of SKG plc are
prepared in accordance with International Financial Reporting
Standards ("IFRS") as adopted by the European Union ("EU"),
International Financial Reporting Interpretations Committee
("IFRIC") interpretations as adopted by the EU, and with those
parts of the Companies Acts applicable to companies reporting under
IFRS. IFRS is comprised of standards and interpretations approved
by the International Accounting Standards Board ("IASB") and
International Accounting Standards and interpretations approved by
the predecessor International Accounting Standards Committee that
have been subsequently approved by the IASB and remain in
effect.
The financial information presented in this report has been
prepared to comply with the requirement to publish an "Interim
management statement" for the first quarter, in accordance with the
Transparency Regulations. The Transparency Regulations do not
require Interim management statements to be prepared in accordance
with International Accounting Standard 34 - "Interim Financial
Information" ("IAS 34"). Accordingly the Group has not prepared
this financial information in accordance with IAS 34.
The financial information has been prepared in accordance with
the Group's accounting policies. Full details of the accounting
policies adopted by the Group are contained in the financial
statements included in the Group's Annual Report for the year ended
31 December 2010 which is available on the Group's website
www.smurfitkappa.com. The accounting policies and methods of
computation and presentation adopted in the preparation of the
Group financial information are consistent with those described and
applied in the Annual Report for the financial year ended 31
December 2010.
In developing IFRS the IASB follows a due process handbook which
allows for a fast track annual improvements process. Under this
process amendments are made to existing IFRSs to clarify guidance
and wording, or to correct for relatively minor unintended
consequences, conflicts or oversights. These amendments do not
usually have a material effect. A number of annual improvements to
IFRSs are effective for 2011, however, none of these had or is
expected to have a material effect on the Group Financial
Statements.
In addition, the following new standards, amendments and
interpretations became effective in 2011, however, they either do
not have an effect on the Group financial statements or they are
not currently relevant for the Group:
-- Classification of Rights Issues (Amendment to IAS 32)
-- IAS 24, Related Party Disclosure (Revised)
-- Amendments to IFRIC 14, Prepayments of a Minimum Funding Requirement
-- IFRIC 19, Extinguishing Financial Liabilities with Equity
Instruments
The following new or amended standards will become effective for
the Group from 1 January 2012 or later. They do not have an effect
on the financial information contained in this report.
Disclosures - Transfers of Financial Assets (Amendments to IFRS
7). Issued in October 2010, these amendments extend the existing
disclosure requirements relating to transfers of financial assets,
particularly those that involve securitisation of such assets. The
extended disclosures are intended to help the users of financial
statements to evaluate the risk exposures relating to transfers of
financial assets and the effect of those risks on an entity's
financial position. Subject to EU endorsement, the Group will adopt
the amended standard for the 2012 financial year. It is not
expected to have an effect on the Group Financial Statements.
Deferred tax: Recovery of Underlying Assets (Amendments to IAS
12). Issued in December 2010, these amendments provide a practical
approach for measuring deferred tax liabilities and deferred tax
assets when investment property is measured using the fair value
model in IAS 40 Investment Property. Subject to EU endorsement, the
Group will adopt the amended standard for the 2012 financial year.
It is not expected to have a material effect on the Group Financial
Statements.
IFRS 9, Financial Instruments. The IASB is in the process of
replacing IAS 39, Financial Instruments: Recognition and
Measurement. IFRS 9, which is effective for the Group from 1
January 2013, represents the first phase of this project. It
addresses classification and measurement of financial assets only.
It replaces the multiple classification models in IAS 39 with two
classification categories, namely amortised cost and fair value.
Classification under IFRS 9 is determined by the business model for
managing financial assets and the contractual characteristics of
the financial assets. It removes the requirement to separate
embedded derivatives from financial asset hosts. It also removes
the cost exemption for unquoted equities. EU endorsement of this
standard has been postponed pending the issuance of further
chapters such as financial liabilities and impairment. It is likely
to affect the Group's accounting for its financial assets. Subject
to EU endorsement the Group will apply IFRS 9 from 1 January
2013.
The condensed interim Group financial information includes all
adjustments that management considers necessary for a fair
presentation of such financial information. All such adjustments
are of a normal recurring nature. Some tables in this interim
statement may not add correctly due to rounding.
The condensed interim Group financial information presented does
not constitute full group accounts within the meaning of Regulation
40(1) of the European Communities (Companies: Group Accounts)
Regulations, 1992 of Ireland insofar as such group accounts would
have to comply with all of the disclosure and other requirements of
those Regulations. Full Group accounts for the year ended 31
December 2010 will be filed with the Irish Registrar of Companies
in due course. The audit report on those Group accounts was
unqualified.
3.Segmental Analyses
The Group has identified three operating segments on the basis
of which performance is assessed and resources are allocated: 1)
Packaging Europe, 2) Specialties Europe and 3) Latin America.
The Packaging segment is highly integrated. It includes a system
of mills and plants that produces a full line of containerboard
that is converted into corrugated containers. The Specialties
segment comprises activities dedicated to the needs of specific and
sometimes niche markets. These include bag-in-box and solidboard.
The Latin America segment comprises all forestry, paper, corrugated
and folding carton activities in a number of Latin American
countries. Inter segment revenue is not material. No operating
segments have been aggregated for disclosure purposes.
Segment disclosures are based on operating segments identified
under IFRS 8. Segment profit is measured based on earnings before
interest, tax, depreciation, amortisation, exceptional items and
share-based payment expense (pre-exceptional EBITDA). Segmental
assets consist primarily of property, plant and equipment,
biological assets, goodwill and intangible assets, inventories,
trade and other receivables, deferred income tax assets and cash
and cash equivalents.
3 months to 31-Mar-11 3 months to 31-Mar-10
Packaging Specialties Latin America Total Packaging Specialties Latin America Total
Europe Europe Europe Europe
EURm EURm EURm EURm EURm EURm EURm EURm
Revenue
and
Results
Revenue 1,329 178 296 1,803 1,103 183 244 1,530
EBITDA 186 15 50 251 137 9 42 188
before
exceptional
items
Segment (1) - - (1) - - (14) (14)
exceptional
items
EBITDA 185 15 50 250 137 9 28 174
after
exceptional
items
Unallocated (8) (4)
centre
costs
Share-based (1) (1)
payment
expense
Depreciation (87) (84)
and
depletion
(net)
Amortisation (7) (12)
Finance (114) (133)
costs
Finance 43 57
income
Profit 2 -
on
disposal
of
associate
Profit/(loss) 78 (3)
before
income
tax
Income (49) (14)
tax
expense
Profit/(loss) 29 (17)
for the
financial
period
Assets
Segment 5,437 701 1,254 7,392 5,222 752 1,174 7,148
assets
Investment 1 - 13 14 2 - 12 14
in
associates
Group 652 845
centre
assets
Total 8,058 8,007
assets
4.Exceptional Items
3 months to 3 months to
The following items are regarded 31-Mar-11 31-Mar-10
as exceptional in nature:
EURm EURm
Currency trading loss on Venezuelan - (14)
Bolivar devaluation
Reorganisation and restructuring costs (1) -
Total exceptional items included (1) (14)
in operating costs
The reorganisation and restructuring costs in 2011 relate to the
continuing rationalisation of the Group's corrugated operations in
Ireland.
In the first quarter of 2010 a currency translation loss of
EUR14 million arose from the effect of the retranslation of the
U.S. dollar denominated net payables of the Venezuelan operations
following the devaluation of the Bolivar Fuerte in January
2010.
5.Finance Costs and Income
3 months to 3 months to
31-Mar-11 31-Mar-10
EURm EURm
Finance costs
Interest payable on bank loans and overdrafts 33 38
Interest payable on finance leases 1 1
and hire purchase contracts
Interest payable on other borrowings 33 33
Foreign currency translation loss on debt 3 31
Fair value loss on derivatives 18 -
not designated as hedges
Interest cost on employee 25 25
benefit plan liabilities
Net monetary loss - hyperinflation 1 5
Total finance cost 114 133
Finance income
Other interest receivable (1) (2)
Foreign currency translation gain on debt (19) (4)
Fair value gain on derivatives (4) (34)
not designated as hedges
Expected return on employee (19) (17)
benefit plan assets
Total finance income (43) (57)
Net finance cost 71 76
6.Income Tax Expense
Income tax expense recognised in the Group Income Statement
3 months to 3 months to
31-Mar-11 31-Mar-10
EURm EURm
Current taxation:
Europe 15 8
Latin America 32 13
47 21
Deferred taxation 2 (7)
Income tax expense 49 14
Current tax is analysed as follows:
Ireland 1 -
Foreign 46 21
47 21
Income tax recognised in the Group Statement of Comprehensive
Income
3 months to 3 months to
31-Mar-11 31-Mar-10
EURm EURm
Arising on actuarial gains/losses (3) 6
on defined benefit plans
Arising on qualifying derivative 3 (2)
cash flow hedges
- 4
The current taxation expense for Latin America includes a EUR23
million tax charge arising from the implementation of additional
temporary taxes in Colombia on 1 January, which although payable
over the next four years, is required to be expensed in quarter one
2011 under IFRS.
7.Employee Post Retirement Schemes - Defined Benefit Expense
The table below sets out the components of the defined benefit
expense for the period:
3 months to 3 months to
31-Mar-11 31-Mar-10
EURm EURm
Current service cost 7 9
Gain on settlements and curtailments - (2)
7 7
Expected return on plan assets (19) (17)
Interest cost on plan liabilities 25 25
Net financial expense 6 8
Defined benefit expense 13 15
Included in cost of sales, distribution costs and administrative
expenses is a defined benefit expense of EUR7 million for the first
quarter of 2011 (2010: EUR7 million). Expected Return on Plan
Assets of EUR19 million (2010: EUR17 million) is included in
Finance Income and Interest Cost on Plan Liabilities of EUR25
million (2010: EUR25 million) is included in Finance Costs in the
Group Income Statement.
The amounts recognised in the Group Balance Sheet were as
follows:
31-Mar-11 31-Dec-10
EURm EURm
Present value of funded or partially (1,537) (1,548)
funded obligations
Fair value of plan assets 1,334 1,357
Deficit in funded or partially funded plans (203) (191)
Present value of wholly unfunded obligations (403) (404)
Net employee benefit liabilities (606) (595)
The employee benefits provision has increased from EUR595
million at 31 December 2010 to EUR606 million at 31 March 2011. The
increase in the provision is mainly as a result of assets
underperforming their assumed return.
8.Earnings Per Share
Basic
Basic earnings per share is calculated by dividing the profit or
loss attributable to owners of the Parent by the weighted average
number of ordinary shares in issue during the period.
3 Months to 3 Months to
31-Mar-11 31-Mar-10
EURm EURm
Profit/(loss) attributable 34 (15)
to owners of the Parent
Weighted average number of ordinary 221 218
shares in issue (million)
Basic earnings/(loss) per share - cent 15.6 (7.0)
Diluted
Diluted earnings per share is calculated by adjusting the
weighted average number of ordinary shares outstanding to assume
conversion of all dilutive potential ordinary shares which comprise
convertible shares issued under the management equity plans.
3 Months to 3 Months to
31-Mar-11 31-Mar-10
EURm EURm
Profit/(loss) attributable 34 (15)
to owners of the Parent
Weighted average number of ordinary 221 218
shares in issue (million)
Potential dilutive ordinary shares assumed 5 -
Diluted weighted average ordinary shares 226 218
Diluted earnings/(loss) per share - cent 15.3 (7.0)
At 31 March 2010 there were 3,247,478 potential ordinary shares
in issue that could have diluted EPS in the future, but these were
not included in the computation of diluted EPS in the period
because they would have had the effect of reducing the loss per
share. Accordingly there was no difference between basic and
diluted loss per share in the first quarter of 2010.
9.Property, Plant and Equipment
Land and Plant and Total
buildings equipment
EURm EURm EURm
Three months ended 31 March 2011
Opening net book amount 1,128 1,880 3,008
Reclassification 1 (2) (1)
Additions - 50 50
Depreciation charge for the period (12) (70) (82)
Retirements and disposals (1) - (1)
Hyperinflation adjustment 4 5 9
Foreign currency translation adjustment (11) (16) (27)
At 31 March 2011 1,109 1,847 2,956
Year ended 31 December 2010
Opening net book amount 1,151 1,915 3,066
Reclassification 25 (25) -
Additions 5 249 254
Acquisitions 10 21 31
Depreciation charge for the year (50) (293) (343)
Retirements and disposals (11) (7) (18)
Hyperinflation adjustment 16 18 34
Foreign currency translation adjustment (18) 2 (16)
At 31 December 2010 1,128 1,880 3,008
10.Share-based Payment
Share-based payment expense recognised in the Group Income
Statement
3 months to 3 months to
31-Mar-11 31-Mar-10
EURm EURm
Charge arising from fair value 1 1
calculated at grant date
In March 2007 upon the IPO becoming effective, all of the then
class A, E, F and H convertible shares and 80% of the class B
convertible shares vested and were converted into D convertible
shares. The class C, class G and 20% of the class B convertible
shares did not vest and were re-designated as A1, A2 and A3
convertible shares.
The A1, A2 and A3 convertible shares vested on the first, second
and third anniversaries respectively of the IPO. The D convertible
shares resulting from these conversions are convertible on a
one-to-one basis into ordinary shares, at the instance of the
holder, upon the payment by the holder of the agreed conversion
price. The life of the D convertible shares arising from the
vesting of these new classes of convertible share ends on 20 March
2014.
In March 2007, SKG plc adopted the 2007 Share Incentive Plan
(the "2007 SIP"). The 2007 SIP was amended in May 2009. Incentive
awards under the 2007 SIP are in the form of new class B and new
class C convertible shares issued in equal proportions to
participants at a nominal value of EUR0.001 per share. On
satisfaction of specified performance criteria the new class B and
new class C convertible shares will automatically convert on a
one-to-one basis into D convertible shares. The D convertibles may
be converted by the holder into ordinary shares upon payment of the
agreed conversion price. The conversion price for each D
convertible share is the average market value of an ordinary share
for the three dealing days immediately prior to the date that the
participant was invited to subscribe less the nominal subscription
price. Each award has a life of ten years from the date of issuance
of the new class B and new class C convertible shares. The
performance period for the new class B and new class C convertible
shares is three financial years. The awards made in 2007 and 2008
lapsed in March 2010 and March 2011 respectively and ceased to be
capable of conversion to D convertible shares.
The new class B and new class C convertible shares issued during
and from 2009 are subject to a performance condition based on the
Company's total shareholder return over the three-year period
relative to the total shareholder return of a peer group of
companies ("TSR Condition"). Under that condition, 30% of the new
class B and class C convertible shares will convert into D
convertible shares if the Company's total shareholder return is at
the median performance level and 100% will convert if the Company's
total shareholder return is at or greater than the upper quartile
of the peer group. A sliding scale will apply for performance
between the median and upper quartiles. However, notwithstanding
that the TSR condition applicable to any such award may have been
satisfied, the Compensation Committee retains an overriding
discretion to disallow the vesting of the award, in full or in
part, if, in its opinion the Company's underlying financial
performance or total shareholder return (or both) has been
unsatisfactory during the performance period.
The plans provide for equity settlement only, no cash settlement
alternative is available.
Subject to shareholder approval at the Annual General Meeting on
6 May 2011, the Compensation Committee propose to replace the
existing long-term incentive plan, the 2007 SIP, as amended, with a
new incentive arrangement, the Deferred Annual Bonus Plan.
A combined summary of the activity under the 2002 Plan, as
amended, and the 2007 SIP, as amended for the period from 1 January
2011 to 31 March 2011 is presented below.
Number of convertible shares
000's
At 1 January 2011 14,947
Forfeited in the period (40)
Lapsed in the period (2,266)
Exercised in the period (1,552)
At 31 March 2011 11,089
At 31 March 2011, 6,111,561 shares were exercisable and were
convertible to ordinary shares. The weighted average exercise price
for all shares exercisable at 31 March 2011 was EUR4.58.
The weighted average exercise price for shares outstanding under
the 2002 Plan, as amended, at 31 March 2011 was EUR4.58. The
weighted average remaining contractual life of the awards issued
under the 2002 Plan, as amended, at 31 March 2011 was 1.9
years.
The weighted average exercise price for shares outstanding under
the 2007 SIP, as amended, at 31 March 2011 was EUR5.44. The
weighted average remaining contractual life of the awards issued
under the 2007 SIP, as amended, at 31 March 2011 was 8.7 years.
11.Analysis of Net Debt
31-Mar-11 31-Dec-10
EURm EURm
Senior credit facility
Revolving credit facility(1)- interest at relevant (8) (8)
interbank rate + 2.75% on RCF1 and +3% on RCF2(8)
Tranche A term loan(2a)--interest at relevant 164 164
interbank rate + 2.75%(8)
Tranche B term loan(2b)--interest at relevant 815 816
interbank rate + 3.125%(8)
Tranche C term loan(2c)--interest at relevant 813 814
interbank rate + 3.375%(8)
Yankee bonds (including accrued interest)(3) 210 219
Bank loans and overdrafts 72 75
Cash (553) (502)
2015 receivables securitisation 165 149
variable funding notes(4)
1,678 1,727
2015 cash pay subordinated notes 354 370
(including accrued interest)(5)
2017 senior secured notes (including 497 488
accrued interest)(6)
2019 senior secured notes (including 500 490
accrued interest)(7)
Net debt before finance leases 3,029 3,075
Finance leases 24 26
Net debt including leases 3,053 3,101
Balance of revolving credit facility 8 9
reclassified to debtors
Net debt after reclassification 3,061 3,110
(1) Revolving credit facility ("RCF") of EUR525 million
split into RCF1 and RCF2 of EUR152
million and EUR373 million (available under
the senior credit facility) to be
repaid in full in 2012 and 2013 respectively.
(Revolver loans - nil, drawn under
ancillary facilities and facilities supported
by letters of credit - nil)
(2a) Tranche A term loan due to be repaid
in certain instalments up to 2012
(2b) Tranche B term loan due to be repaid in full in 2013
(2c) Tranche C term loan due to be repaid in full in 2014
(3) US$292.3 million 7.50% senior debentures due 2025
(4) Receivables securitisation variable
funding notes due November 2015
(5) EUR217.5 million 7.75% senior subordinated notes due 2015 and
US$200 million 7.75% senior subordinated notes due 2015
(6) EUR500 million 7.25% senior secured notes due 2017
(7) EUR500 million 7.75% senior secured notes due 2019
(8) The margins applicable to the senior credit
facility are determined as follows:
Debt/EBITDA Tranche A and RCF1 Tranche B Tranche C RCF2
ratio
Greater than 3.25% 3.375% 3.625% 3.50%
4.0 : 1
4.0 : 1 or 3.00% 3.125% 3.375% 3.25%
less but
more than
3.5 : 1
3.5 : 1 or 2.75% 3.125% 3.375% 3.00%
less but
more than
3.0 : 1
3.0 : 1 or less 2.50% 3.125% 3.375% 2.75%
Supplemental Financial Information
EBITDA before exceptional items and share-based payment expense
is denoted by EBITDA in the following schedules for ease of
reference.
Reconciliation of profit/(loss) to EBITDA
3 months to 3 months to
31-Mar-11 31-Mar-10
EURm EURm
Profit/(loss) for the financial period 29 (17)
Income tax expense 49 14
Currency trading loss on Venezuelan - 14
Bolivar devaluation
Reorganisation and restructuring costs 1 -
Net finance costs 71 76
Share-based payment expense 1 1
Profit on disposal of associates (2) -
Depreciation, depletion (net) and amortisation 94 96
EBITDA 243 184
Supplemental Historical Financial Information
EURm Q1, 2010 Q2, 2010 Q3, 2010 Q4, 2010 FY, 2010 Q1, 2011
Group and 2,435 2,740 2,761 2,833 10,769 2,956
third
party
revenue
Third 1,530 1,696 1,702 1,749 6,677 1,803
party
revenue
EBITDA 184 221 243 257 904 243
EBITDA 12.0% 13.0% 14.3% 14.7% 13.5% 13.5%
margin
Operating 73 77 143 115 409 147
profit
Profit/(loss) (3) (5) 63 49 103 78
before tax
Free cash (58) (12) 128 23 82 12
flow
Basic (7.0) (10.3) 16.9 23.3 22.9 15.6
earnings/(loss)
per share
- cent
Weighted 218 218 218 219 219 221
average
number
of shares
used
in
EPS
calculation
(million)
Net debt 3,162 3,291 3,123 3,110 3,110 3,061
Net debt 4.2 4.2 3.7 3.4 3.4 3.2
to
EBITDA
(LTM)
Smurfit Kappa (LSE:SKG)
Graphique Historique de l'Action
De Sept 2024 à Oct 2024
Smurfit Kappa (LSE:SKG)
Graphique Historique de l'Action
De Oct 2023 à Oct 2024