Smurfit Kappa Group

Return to box growth; Westrock merger on track

  • Sectors : Paper & Packaging
  • Companies : Smurfit Kappa Group

Ratings and price correct at time of issue.

  • Smurfit Kappa Group

    Closing Price: 3482c

  • RATING 30/06/09

  • PREVIOUS RATING N/A

DAVY VIEW

While Smurfit Kappa Group’s (SKG) €2.08bn 2023 EBITDA was a modest 1% consensus beat, in 2024 year-to-date (yd.), the company saw a return to +3% European box demand growth, boosting confidence in 2024 recovery. Our updated €1.97bn 2024E EBITDA sits in line with consensus. SKG’s merger with US packaging peer Westrock is on track for mid-2024 completion, with a return to US and European box growth providing a supportive environment for Smurfit Westrock’s 1) merger integration, 2) potential synergy ‘beat and raise’ and 3) financial de-leveraging.

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Feb 8 2024, 07:15 GMT

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