SMURFIT KAPPA chief executive Gary McGann is confident the packaging company will achieve “meaningful” overall growth in 2010, despite the current difficulties facing the European economy.

The Dublin-based packaging company yesterday reported first-quarter Ebitda (earning before interest, taxes, depreciation and amortization) of €184 million compared with €180 million in the prior-year period. The company said the “relatively strong” Ebitda was driven by pricing and demand pick-up in Europe and Latin America, as well as “a particularly solid month” in March.

Speaking after the company’s agm yesterday in Dublin, Mr McGann said recent developments in Europe are a concern as GDP growth and consumer confidence are key factors in Smurfit Kappa’s business growth. He said the underlying recovery evident particularly in the pharmaceutical, chemical and industrial sectors is positive.

The trading update stated that revenues in the first quarter of the year increased by 2 per cent year-on-year to €1.53 billion. Operating profit before exceptional items was €87 million for the first three months of this year, up from €82 million in the year ago quarter.

Corrugated volumes in Europe were up 3 per cent compared to a decline of 2 per cent in the final quarter of 2009. Volumes in Latin America increased by 7 per cent.

Volume and price improvements in the first quarter more than offset the sharp rise in raw material costs, the company said.

Net debt was €3.16 billion for the quarter, down slightly from the €3.19 billion recorded a year earlier. This represented an increase of more than €100 million from the end of 2009 ,which was attributed to seasonal working capital outflows and negative currency movements of €49 million – more than half of which related to the devaluation of the Venezuelan currency.

Mr McGann said the company would continue its focus on reducing net debt – which resulted in an extensive refinancing programme in 2009 – this year.