Smurfit WestRock PLC on Wednesday released its first earnings report as a merged company, though the figures covered only one of the two.

Smurfit WestRock represents the merger of Ireland’s Smurfit Kappa Group PLC and the US’s WestRock Co. The deal was completed only last month, so the company on Wednesday reported the results of Dublin-based Smurfit Kappa on its own. Results of the combined company will start with the third quarter this year, it said.

Smurfit Kappa’s net income halved to $132 million in the second quarter of 2024 from $267 million a year before.

Net sales slipped 3.5% to $2.97 billion from $3.08 billion, and Smurfit spent $60 million in transaction costs for the merger, resulting in the lower profit.

More positively, reduced raw material and energy costs resulted in a $12 million decrease in cost of goods sold.

Adjusted earning before interest, tax, depreciation and amortisation was $480 million, down from $556 million a year before. The adjusted Ebitda margin was 16.2%, down from 18.1%.

‘These results were...achieved against a backdrop of significantly higher recovered fiber costs and lower corrugated box prices,’ said Chief Executive Officer Tony Smurfit. ‘We expect these increased costs will be recovered through increased box pricing with the customary time lag.’

Smurfit said corrugated volume was up 3.1% in the recent quarter from a year before, with 3.5% growth in Europe and 1.5% in the Americas.

Smurfit WestRock shares were down 4.3% to 3,454.00 pence in London early Wednesday. The stock also is listed on the New York Stock Exchange, and it was included in the S&P 500 index earlier this month.

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