Smurfit Westrock posts €138m loss in first trading update since merger 

Transaction related expenses saw newly-formed Smurfit Westrock post a net loss of of $150m (€138m) in the three months between July and September, marking the company’s first financial quarter since the Irish-founded packaging giant combined with its prior US rival.

In a trading update posted on Wednesday, the company said transaction expenses and purchase accounting adjustments totalled $500m, leading to its net loss.

The group’s net sales rose to $7.7bn (€7.1bn), up from the $2.9bn recorded in the same period last year, driven by the positive impact from acquisitions, but fell short of expectations.

Speaking on its latest results, CEO and President of Smurfit Westrock Tony Smurfit said he was pleased to report an “excellent performance,” adding that it “clearly points to the opportunities ahead” for the company.

The packaging giant reported adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) of $1.2bn, up from $525m in the same period in 2023.

The company’s adjusted Ebitda margin was 16.5% with Mr Smurfit saying these results “are a strong foundation to build upon.”

Meanwhile, net cash from operating activities was $320m million for the three month period.

For the full year 2024, Smurfit Westrock expects a combined adjusted Ebitda of approximately $4.7bn.

Adjusted Ebitda for the group’s Europe, MEA and APAC segment remained consistent with the same period last year, totalling $411m. 

This was primarily due to a $37m positive impact from the acquisition of WestRock offset by a reduction in adjusted Ebitda primarily due to an increase in raw material, payroll and distribution costs, the company said.

Adjusted Ebitda for the company’s North America segment increased by $714m to $780m in the three month period, underpinned by a $724m positive impact from the acquisition of WestRock.

In September last year, Smurfit Kappa and Westrock announced they would combine their operations as part of a deal reported to be worth €10.5bn, creating the largest packaging group in the world. 

The Dublin-headquartered company also announced that it would delist from the Irish stock exchange on its last day trading as Smurfit Kappa, with the new entity now listed on the London Stock Exchange and New York Stock Exchange. 

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}