Smurfit Kappa PLC (LON:SKG) has reported strong full-year results and rewarded shareholders with a big hike in dividends.
The FTSE 100-listed paper and packaging group, which last year fought off takeover interest from US rival International Paper Co. (NYSE:IP), saw revenue grow by 4% to €8.95bn, while its group EBITDA margin increased to 17.3% from 14.5%.
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The Ireland-based firm saw an increase of over 25% in underlying earnings (EBITDA) to €1.545bn, with strong free cash flow growth of 61% to €494mln.
The company highlighted its significant acquisition activity during the year with expansions in France, the Netherlands and Serbia
Tony Smurfit, Group CEO, commented: “Our 2018 performance demonstrates the Group’s transformation of recent years, which is delivering progressively superior returns. This creates the platform for success in 2019 and beyond.
The group proposed a final dividend 72.2 euro cents per share, up 12% on last year’s payout.