The group also reported a seven percent year on year increase in operating profit in the first half of 2008.

Revenues rose to €1.85 billion from €1.83 billion in the previous year, although the group remains cautious as challenging trading conditions continue.

CEO Gary McGann warned of a slowdown in demand growth and broad-based cost inflation throughout 2008. He also confirmed that the group expects to deliver current market expectations for the year.

Smurfit Kappa Group is a world leader in paper-based packaging and operates throughout 22 countries in Europe.