Paper prices have moved up sharply, packaging giant Smurfit Kappa said today after a “remarkable” start to the year fuelled by the online shopping boom.
Chief executive Tony Smurfit said his company had experienced strong corrugated volume growth “in practically every area and all markets in which we operate”.
The Dublin-based packaging giant revealed a 6% rise in underlying revenues to 2.3 billion euros (£2 billion) In the first quarter.
This has been accompanied by “unprecedented” industry wide shortages of supply and input cost pressures, with paper prices sharply higher.
The company’s packaging plants source most of their raw materials from the company’s own paper mills.
Smurfit reported an underlying margin of 17%, compared with 17.9% in the second half of 2020, and said it was recovering higher input costs in line with its expectations.
Shares reached a record