Smurfit Kappa has reported a pre-tax profit of €312m for the six months to the end of June - up 28% year on year.
The paper and packaging company saw its revenues rise by just 1% to €4.05 billion, though it said it had continued to focus on efficiency and growing its reach in the period.
Smurfit Kappa said it had volume growth of 2% in Europe during the six months, while it had also sustained strong growth in the Americas.
As part of its expansion there, the firm announced the acquisition of two integrated packaging businesses in Brazil in a deal valued at €186m in January.
It said pricing initiatives across the region helped offset some of the negative currency impact in the first half and the company expects to implement price increases through the second half of the year.
The firm said it expected to have a good year of earnings growth in 2016 as a whole, despite higher input costs and the general market volatility that currently exists.
Smurfit Kappa Group CEO Tony Smurfit said: “In Europe, we have delivered an improved earnings performance in the first half, with organic box volume growth of 2% and a relatively stable pricing environment in local currency terms.
On the outlook for the remainder of the year, Mr Smurfit said: “Our leverage multiple has reduced to 2.5 times net debt to EBITDA in advance of our more cash generative second half of the year.”
He added: “Against a backdrop of higher than expected input costs, more pronounced currency volatility and a greater degree of macroeconomic risk, we expect to have a good year with earnings growth for 2016.
“SKG is well positioned for growth and business development. We are a clear market leader, in a growth industry, with a continuously improving business model. SKG continues to build balance sheet strength which increases the range of strategic and financial options open to us.”
Smurfit Kappa has around 45,000 employees across 34 countries, recording revenue of €8.1 billion last year.
