The acquisition of WestRock closed on July 5, 2024, marking a transformative event for Smurfit Kappa. This transaction significantly expands the company's scale, geographic reach, and product portfolio, positioning it as one of the world's largest integrated manufacturers of paper-based packaging products.

The company announced plans to permanently close a CRB mill in Minnesota and discontinue production at a containerboard mill in Texas. These closures are expected to reduce containerboard and CRB capacity by approximately 500,000 tons annualized, demonstrating a proactive approach to aligning supply with customer demand.

Management is actively integrating Smurfit Kappa and WestRock, with transaction and integration-related expenses impacting operating profit. Successful integration is critical to realizing the anticipated synergies and benefits of the Combination.

Management acknowledges a material weakness in internal control over financial reporting and is implementing a remediation plan. Addressing this weakness is essential for ensuring the accuracy and reliability of financial reporting.

The company is involved in asbestos-related personal injury litigation, with approximately 690 lawsuits outstanding. While management believes it has substantial insurance coverage, the outcome of these claims and the potential for increased costs remain a risk.

Smurfit Kappa has an ongoing international arbitration claim against Venezuela related to the seizure of its Venezuelan business. While an award was granted, Venezuela has initiated proceedings to annul the award, creating uncertainty regarding the ultimate recovery.

Prices of corrugated containers and consumer packaging are primarily a function of cyclical market conditions, capacity, competition, and prevailing raw material prices. These factors can impact the company's ability to maintain profitability.

The announced capacity reduction and facility closures are intended to improve operational efficiency by aligning supply with customer demand. This restructuring is expected to increase overall profitability.

The Board approved a quarterly dividend, demonstrating a commitment to returning capital to shareholders. This action signals confidence in the company's financial position and future cash flow generation.

The company invested $477 million in capital expenditures during the quarter, indicating ongoing investments in property, plant, and equipment to support operations and future growth.

Foreign currency fluctuations had both positive and negative impacts on net sales and Adjusted EBITDA. The company operates in multiple countries, making it susceptible to currency-related volatility.