- Smurfit increased prices by a further 2-3% in Q3
- CEO says price hikes at an end as input costs ease
- FY core profit set to rise by 33% to 2.3 billion euros
DUBLIN, Nov 2 (Reuters) – Packaging giant Smurfit Kappa (SKG.I) does not expect to hike prices any further this year and may be able to unwind some of the recent rapid increases it has pushed onto customers, its chief executive said on Wednesday.
The prices Smurfit charges were 35% to 40% higher than they were two years ago at the end of June and Europe’s largest paper packaging producer said on Wednesday it had increased them by another 2% to 3% in the third quarter.
However, CEO Tony Smurfit indicated the cycle may be over for now following a recent halving in the cost of waste paper, fall in spot gas prices and an abatement in other input costs such as distribution and logistics.
“In that environment, it’s very difficult to see price increases going forward,” Smurfit told an analyst call, adding it was too early to forecast pricing for next year.
“The question is will some of that be given back to market and I think the reality is you would expect some of it is going to be given back to the market.”
Source :Reuters
