Smurfit Kappa Group plc (LSE:SKG) (LON:SKG) continues to benefit from the e-commerce boom, the shift to paper packaging as an alternative to less sustainable plastic and the recovery in corrugated prices.
Chief executive Tony Smurfit said the second half saw continued strong demand with earnings expected to keep climbing in the remainder of the year.
READ: DS Smith, Mondi and Smurfit Kappa all worth buying as broker questions whether "peak pricing" has been reached
The FTSE 100 firm also increased the interim dividend by 5% to 29.3 cents per share.
In the six months to 30 June, revenue jumped 11% to €4.6bn with profit before tax up 8% to €413mln. Net debt shrunk to €2.5bn from €3.2bn a year ago.
The paper group has also agreed to acquire Verzuolo, a containerboard business in Italy, for €360mln in cash.
The mill is located near Savona, in the northwest of the country, and has a capacity of 600,000 tonnes.
“This mill is strategically well-positioned in Northern Italy, it is highly complementary to our existing operational footprint and will support the acceleration of the significant investments we are making in our converting operations,” Smurfit commented.
“We were also delighted to complete the acquisition of two operations in our Americas region in Peru and Mexico. These two businesses further add to our geographic footprint, including a new market through Peru.”
Shares rose 1% to 4,090.04p on Wednesday morning.