Smurfit Westrock reports strong Q3 performance following merger

IRELAND – Smurfit Westrock has released its third-quarter 2024 results, marking its first financial report since the merger of Smurfit Kappa and WestRock.

Despite a US$150 million net loss, CEO Tony Smurfit expressed optimism, stating that the results reveal “clear opportunities” for the newly formed company.

The acquisition has more than doubled Smurfit Westrock’s net sales, climbing from nearly US$3 billion in Q3 2023 to US$7.7 billion this quarter.

However, a net income margin of -2 percent reflects the impact of merger-related costs and purchase accounting adjustments.

“With adjusted EBITDA reaching US$1.27 billion and an adjusted EBITDA margin of 16.5 percent, we have a solid foundation for growth,” noted Tony Smurfit.

“Our track record in service, quality, and innovation is already paying off, and we’re confident that our focus on plant-level autonomy, operational improvements, and profitability will help us achieve our synergy target of US$400 million.”

In its first 100 days, Smurfit Westrock has integrated its leadership teams and aligned its operating model, fostering a commercial strategy that emphasizes value over volume.

Executives have visited 85 percent of the company’s North American paper production facilities, underscoring their commitment to understanding and optimizing the new organization’s assets.

As part of its asset optimization plan, Smurfit Westrock, headquartered in Dublin and Atlanta, has closed multiple facilities to streamline operations.

These include 10 corrugated packaging plants, 13 consumer packaging plants, two mills, and four divested mills in North America, as well as one mill and six packaging plants in Europe and Asia.

The company also reports a workforce reduction of over 800 employees, aimed at enhancing efficiency and reducing operational redundancy.

“Our third-quarter performance and the progress in optimizing our assets underscore the potential that lies ahead,” Smurfit added.

“We are just beginning our journey to become the leading global sustainable packaging partner, combining unrivaled scale, geographic reach, and product variety. After visiting numerous plants, I am inspired by the enthusiasm and commitment of our people.”

Looking forward, Smurfit Westrock anticipates a full-year adjusted EBITDA of approximately US$4.7 billion, with CEO Tony Smurfit emphasizing the company’s excitement about its short- and long-term growth prospects.

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