Powerflute, the Finnish paper and packaging firm part-owned by Smurfit brothers Michael and Dermot, saw revenues decline in the first-half of the year as profits climbed slightly.

The Aim-listed company, which saw its revenue more than double to €357 million in 2015, said turnover in the first six months of 2016 fell by 2 per cent to €176.1 million from €179.7 million a year earlier. Pre-tax profits increased 1.6 per cent to €18.5 million as against €18.2 million in the preceding year.

Earnings before interest, taxes, depreciation, and amortisation (ebitda), was unchanged at €26.5 million.

The company said it had net debt of €42.9 million at the end of June versus €37.1 million on December 31st, 2015.

Revenues from coreboard and cores rose to €106.1 million in the first-half from €105.4 million a year earlier while packaging papers turnover fell to 69.9 million from €74.3 million.

Dermot Smurfit, Powerflute's chairman, said he expected markets to remain competitive throughout the second half.

“The group performed well during the first half of the year despite encountering tougher market conditions in a number of areas. In particular, good progress has been made in the coreboard and cores activity. The integration of the Corenso businesses into the group is now substantially complete and operational improvement is occurring in line with our expectations,” he said.

“The packaging papers business continued to perform well despite increased competitive pressure and we are confident that investments completed during the maintenance shutdown will deliver benefits during the second half,” Mr Smurfit added.