Aug 11, 2011. /Lesprom Network/. Smurfit Kappa Group announced, that at Euro 1,867 million for the 2Q 2011, sales revenue was 10% higher than in the 2Q 2010. However, allowing for the negative impact of currency and hyperinflation accounting of Euro 32 million, together with a net Euro 10 million in respect of acquisitions, disposals and closures, the underlying increase in revenue was Euro 213 million, the equivalent of approximately 13%. Compared to the 1Q 2011, sales revenue in the 2Q was Euro 64 million higher with an underlying increase of Euro 70 million, the equivalent of 4%. At Euro 264 million, EBITDA in the 2Q 2011 was Euro 43 million higher than the 2Q 2010. On a comparable basis EBITDA increased year-on-year by Euro 45 million, the equivalent of 21%. Compared to the 1Q 2011, EBITDA increased by Euro 21 million. At Euro 132 million, operating profit after exceptional items for the 2Q 2011 was Euro 55 million higher than in 2010, an increase of approximately 72%. Revenue of Euro 3,670 million in the 1Q 2011 represents a 14% increase on the first half of 2010. Allowing for a negative impact of currency and hyperinflation accounting of Euro 5 million, and for a net Euro 19 million in respect of acquisitions, disposals and closures, revenue shows an underlying year-on-year increase of Euro 468 million (15%). At Euro 507 million, EBITDA in the first half of 2011 was Euro 103 million, or 25% higher than in the comparable period in 2010. While the impact of currency was negligible, acquisitions and the absence of loss making operations sold or closed in 2010 increased 2011’s EBITDA by Euro 4 million, giving an underlying increase of Euro 99 million (24%). Exceptional items charged within operating profit in the first half of 2011 related almost entirely to the closure of Nanterre mill. In the first half of 2010, exceptional charges within operating profit amounted to Euro 56 million, of which approximately Euro 40 million related to the asset swap with Mondi, while the balance related to the currency devaluation and associated hyperinflationary adjustments in Venezuela, which were booked primarily in the 1Q. Operating profit after exceptional items for the half year was Euro 279 million, compared to Euro 150 million for the same period in 2010, an increase of 86%. Including the Group’s share of associates’ profit of Euro 1 million in 2011, total profit before tax was Euro 136 million in the first six months of 2011 compared to a loss of Euro 9 million in 2010. Gary McGann, Smurfit Kappa Group CEO, said the net debt reduction over the last twelve months highlights the company’s continued disciplined cash flow management and sustained earnings growth. “Against a backdrop of increased cost pressure in the second quarter, our improved EBITDA margin of 14.2% primarily reflects further progress on European corrugated pricing recovery, an increasingly efficient operating base and a continuing strong performance in our Latin American businesses.” He said, however, that despite the positive operating performance in the first half, increasing risks to the global economy make it difficult to be definitive about the business outlook. “In that context, we are maintaining our focus on delivering enhanced packaging solutions for our customers, while continuing our drive on cost efficiency, corrugated pricing recovery, and debt pay down.” Smurfit Kappa Group is a world leader in paper-based packaging with operations in Europe and Latin America.