Sustainable paper and packaging company Smurfit Westrock has reported a substantial elevation in net sales in the first quarter (Q1) of fiscal year 2025 (FY25), reaching $7.66bn, a stark contrast to the $2.93bn reported in the corresponding period of the previous year.
As of 31 March 2025, the company also witnessed its net income surge to $382m, a leap from the $191m secured in Q1 FY24.
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Despite this impressive growth in net sales and income, the company’s net income margin contracted slightly to 5.0% in Q1 FY25 from the 6.5% observed in the same quarter of the preceding year.
Diluted earnings per share attributable to common shareholders held steady at $0.73, mirroring the figures from one year prior.
The company’s adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the first quarter stood at $1.25bn, accompanied by an adjusted EBITDA margin of 16.4%.
This indicates a marginal increase from the $475m and 16.2% margin noted in the same quarter of the previous year.
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By GlobalDataFurthermore, Smurfit Westrock’s gross profit ascended to $1.58bn in Q1 FY25, up from $710m in Q1 FY24.
Similarly, its operating profit climbed to $553m from $307m in the same period a year ago.
Smurfit Westrock president and CEO Tony Smurfit said: “This performance was driven by good results across all three segments, with notable progress in North America, and is significantly ahead of the combined result for the prior year.
“I am especially pleased with how well the combination has come together, with strong operational and cultural integration taking place across all three regions. Coupled with our geographic footprint and our unrivalled portfolio of innovative and sustainable packaging solutions, we have a customer-focused and performance-driven team that is delivering for all stakeholders.”
The company is actively refining its asset portfolio and has recently disclosed the shutdown of over 500,000 tons of paper capacity in North America.
Additionally, it is proceeding with the closure of two converting facilities within this region and has initiated discussions regarding the potential closure of two more converting sites in the Europe, the Middle East and Africa and Asia-Pacific regions.
In alignment with its strategic growth plans, Smurfit Westrock developed two converting plants in Washington and Wisconsin, US, and is nearing completion on a new Bag-in-Box (BiB) facility in South Carolina.
In November last year, Smurfit Westrock launched the new EasySplit BiB design to address the impending requirements of the EU’s Packaging and Packaging Waste Regulation.
