Fri, May 9, 10:36 AM (10 days ago)
**Smurfit Westrock plc (SW) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $7,656 million (up from $2,930 million in Q1 2024), driven by the acquisition of WestRock and higher selling prices. - **Profit Margins:** Gross profit margin was 20.6%, up from 24.2% in Q1 2024. Operating profit margin was 7.2%, up from 10.5% in Q1 2024. - **Net Income:** $384 million (up from $191 million in Q1 2024), primarily due to the acquisition of WestRock. - **Earnings per Share (EPS):** Basic EPS was $0.74, and diluted EPS was $0.73. - **Cash Flow:** Net cash provided by operating activities was $235 million (up from $42 million in Q1 2024). **Segment Performance:** - **North America:** Net sales increased by $4,257 million, and Adjusted EBITDA increased by $726 million, primarily due to the acquisition of WestRock. - **Europe, MEA, and APAC:** Net sales increased by $388 million, and Adjusted EBITDA increased by $4 million, with a positive impact from the acquisition of WestRock. - **LATAM:** Net sales increased by $172 million, and Adjusted EBITDA increased by $61 million, primarily due to the acquisition of WestRock. **Trends & Uncertainties:** - **Capacity Reduction:** Planned closures of facilities in the U.S. and Germany, expected to reduce capacity by over 500,000 tons annually. - **Integration Costs:** Transaction and integration-related expenses associated with the Combination were $36 million. - **Foreign Currency Impact:** Negative foreign currency impact on net sales and Adjusted EBITDA. - **Economic Factors:** Demand for packaging products is influenced by overall economic growth, industrial production, and consumer behaviors. **Future Operations Impact:** - **Cost Savings:** Expected elimination of corresponding fixed costs from facility closures. - **Debt:** Total debt was $14,219 million, with a current portion of $1,300 million. - **Liquidity:** Available liquidity was $5,630 million, including cash and undrawn committed facilities. **Legal & Regulatory:** - **Asbestos Litigation:** Ongoing but not expected to materially impact financials. - **Italian Competition Authority:** Fine reduced by $18 million, with further appeals pending. - **Venezuela Arbitration:** Award of $469 million, with annulment proceedings ongoing. **Dividends:** - **Q2 2025 Dividend:** $0.4308 per share, payable June 18, 2025.