Packaging giant Smurfit Kappa Group plc (LSE:SKG) has noted that declining demand trends have slowed in recent months as it reported third-quarter earnings on Wednesday.
Though the FTSE 100 firm penned lower revenue and profit for the quarter, box demand reduced more marginally than earlier in the year.
“Box demand in the third quarter for the group was approximately 2% behind 2022 levels versus a negative 7% and 5% in the first and second quarters respectively,” chief executive Tony Smurfit said in a statement.
“We expect this trend to continue, with Germany in particular showing improved order books.”
Revenue fell by 19% over the three months to September to €2.7 billion, while operating profit before exceptional items slipped 16% to €351 million.
Earnings before interest, taxes, depreciation, and amortization margins increased from 17.8% to 19% though, with the figure coming in at €512 million.
Smurfit Kappa anticipated that full-year pre-tax earnings would sit just above €2 billion as a result, which is at the top end of expectations.
“Our consistent delivery, over many years, demonstrates the quality of our business and the capital allocation decisions we have made,” Tony Smurfit added.
Shares climbed 2.2% to 2,742p.