Smurfit Westrock Reports $21.1 Billion in Net Sales for 2024, Net Income Declines

Smurfit Westrock plc reported net sales of $21.1 billion for the year ended December 31, 2024, a $9.0 billion increase compared to $12.1 billion in 2023. This surge is primarily attributed to the acquisition of WestRock Company, which closed on July 5, 2024. Excluding the acquisition's impact, net sales decreased by $365 million due to a lower selling price/mix, partially offset by higher volumes. Net income attributable to common shareholders decreased to $319 million in 2024 from $825 million in 2023, primarily due to increased transaction and integration expenses ($317 million), higher net interest expense ($259 million), and a $224 million charge for inventory fair value step-up.

The company's three reportable segments—North America, Europe, Middle East & Africa (MEA) and Asia-Pacific (APAC), and Latin America (LATAM)—reflect a restructuring following the WestRock acquisition. North America sales accounted for 47% of total external net sales in 2024, while Europe, MEA & APAC and LATAM contributed 45% and 8%, respectively. Production figures for 2024 included containerboard production of approximately 8.2 million tons in North America and 6.2 million tons in Europe, MEA & APAC, and paperboard production of approximately 3.1 million tons in North America. Corrugated operations produced approximately 83.9 billion square feet in North America and 97.5 billion square feet in Europe, MEA & APAC.

Smurfit Westrock's operations span 40 countries, with 62 paper mills, 459 converting plants, and numerous other facilities. The company's business strategy focuses on integrating Smurfit Kappa and WestRock, expanding market positions, enhancing customer engagement and innovation, improving operational excellence, developing human capital, and efficient capital allocation. The company's "Better Planet Packaging" initiative aims to develop sustainable packaging solutions. As of December 31, 2024, Smurfit Westrock employed approximately 100,000 people globally, with approximately 52,500 in North America, 37,000 in Europe, MEA & APAC, and 10,500 in Latin America.

The company's financial position as of December 31, 2024, included total debt of $13.6 billion and cash and cash equivalents of $855 million. Net cash provided by operating activities decreased to $1.5 billion in 2024 from $1.6 billion in 2023. Capital expenditures totaled $1.5 billion in 2024, and $719 million was paid for the purchase of businesses (net of cash acquired). The company paid $650 million in cash dividends to shareholders in 2024. Smurfit Westrock declared quarterly dividends of $0.3025 per share in September and December 2024, and a dividend of $0.4308 per share was approved in January 2025.

The company identified a material weakness in its internal control over financial reporting, primarily related to legacy Smurfit Kappa processes not previously subject to Section 404 of the Sarbanes-Oxley Act. Smurfit Westrock is implementing remediation measures, but cannot guarantee their complete success or the absence of future deficiencies. The company also detailed various risk factors, including market and industry risks, operating risks, risks related to the Combination, financial risks, legal and regulatory risks, and risks related to its incorporation in Ireland. These risks could materially and adversely affect the company's business, financial condition, results of operations, and share price.