Regional Business Information for the North West
Improved earnings and reduced debts for Smurfit Kappa
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8th February 2012
Smurfit Kappa Group reports EBITDA growth of 12% to €1,015 million and pre-exceptional EPS growth of 69% for the full year of 2011.
Strong free cash flow generation delivered a net debt reduction of €358 million to €2.75 billion in 2011, which exceeded the net debt reduction target.
Lower net debt combined with a strong EBITDA outcome delivered a reduction of our net debt to EBITDA ratio to 2.7x at year-end.
Gary McGann CEO commented: "Our strong financial performance demonstrates the benefits of our continued efficiency improvements and market-leading platform, which delivered material growth in our pan-European business.
"A number of significant development investments were carried out in 2011, reinforcing our position as the leading integrated business in our industry, in both Europe and Latin America. We are continuing our unrelenting focus on customer service, product innovation and operating efficiency.
"Within the past 18 months, we have materially improved the financial profile and flexibility of SKG, by reducing net debt by approximately euro540 million, while maintaining a strong liquidity position and diverse funding sources. The amendment request launched today, to extend the maturities of our Senior Credit Facility to 2016 and 2017 and to further increase our financial flexibility, forms part of an ongoing process of efficient balance sheet management.
"While macro-economic risks remain, in 2012 and beyond, we expect to continue delivering strong free cash flow through the cycle. As a consequence of our increased financial flexibility and sustained confidence in the long-term outlook for our business, we are satisfied that it is appropriate and timely for SKG to reinstate a sustainable dividend stream.
"Consequently, the Board is recommending a final dividend of 15 cent per share for 2011, currently representing an annualised yield of over 3%."
At 8:56am:
(LON:SKG) share price was +0.4p at 7.04p
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