Smurfit Kappa, a corrugated packaging company, has reported that its profit fell by 19.6% to €759m ($817m) in financial year 2023 (FY23), compared with €945m in FY22. 

The company’s profit before tax was €1.05bn, down 18% from €1.29bn in FY22.  

During the year ending 31 December 2023, the company’s operating profit before exceptional items reached €1.40bn, marking a 16% decrease from €1.66bn in 2022.  

Revenue for Smurfit for the full year was €11.27bn, down by 12% on a reported basis and 11% on an underlying basis from the previous year.  

In Europe, the company’s revenue dropped 14%, primarily due to lower paper and box pricing year-on-year (YoY) and lower box volumes. Its Americas segment also saw revenue down by 5% on 2022, and 6% on an underlying basis. 

Its earnings before interest, taxes, depreciation, and amortisation stood at €2.08bn in FY23, a 12% reduction from €2.35bn in FY22.  

The company's net debt also saw a reduction of 5% to €2.84bn in FY23, from €2.99bn in FY22.  

Smurfit Kappa Group CEO Tony Smurfit said: “Our results, the second best in our 90-year history, reflect the excellence of our people and their dedication in providing the most innovative and sustainable packaging solutions for our customers.  

“However, one trend in which we have seen strong acceleration, is an increasing demand for sustainable packaging solutions. While full-year volumes for the group were down 3.5%, we saw a progressive improvement in demand during the year, with a return to growth in the fourth quarter.” 

Last September, Smurfit agreed to acquire Westrock in a deal that will see the formation of a new combined holding company, Smurfit Westrock. 

The deal is set to be completed in the second quarter of 2024.