Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Packaging company Smurfit Kappa scrapped its final dividend, citing uncertainty created by the Covid-19 crisis.
The company had intended to pay a final dividend for 2019 of 80.9c per share.
Smurfit Kappy said it would make an assessment of the quantum and timing of a dividend later in the year, when the effects of the pandemic were better understood.
It said its revenue in the first quarter of 2020 amounted to €2.19m and earnings before interest, tax, depreciation and amortisation €380m, with an earnings margin of 17.3%.
Chief executive Tony Smurfit said all of the company's facilities were operational during the quarter.
'We are an integral part of todays vital supply-chains, whether it is ensuring that retailers remain supplied with food and other basic goods or ensuring that critical pharmaceutical and medical supplies and devices reach hospitals and other health care facilities where they are needed to fight this pandemic,' he said.
Volumes in Europe during the first quarter rose 3% or around 2% on an organic basis, while demand in the Americas grew by 3.5% on-year.
'During these uncertain times, we have a heightened focus on cost reduction while maintaining our market-leading innovation and sustainability offeringm' Smurfit said.
'While the full extent and effects of the macro and economic risks brought on by Covid-19 are unclear, Smurfit Kappa remains very well positioned both financially and operationally.'