EY CFO Outlook: Mergers and transformation, with Ken Bowles, Smurfit Kappa Group
Sep 20, 2023
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Ken Bowles, CFO of Smurfit Kappa Group, talks about their recent merger announcement and the company's focus on sustainability. He reflects on his 30 years with the company and emphasizes the importance of people in a successful business. Topics also include learning from mistakes, leadership qualities, and the legacy of packaging in the industry.
The recent merger with US rival Westrock positions Smurfit Kappa as a global player in sustainable packaging, with projected revenues of $34 billion and $5.5 billion of EBITDA.
Ken Bowles highlights the importance of people and leadership, emphasizing the need for inclusive and supportive cultures, talent development, and a sustainable and diverse workforce.
Deep dives
Smurfert Westrock merger creates the biggest packaging company
The CFO of Smurfert Kappa, Ken Bowles, discusses the recent merger with US rival Westrock, which has resulted in Smurfert Westrock becoming the largest company in their field. The merger was a four-year process and offers the opportunity for Smurfert Kappa, a small Irish company, to become a global player in sustainable packaging. The combined company is projected to have $34 billion in revenues and $5.5 billion of EBITDA.
Revenue growth and success of Smurfert Kappa
Since Ken Bowles joined Smurfert Kappa in 1994, the company's revenue has grown significantly. In 1994, the revenue was around $2 billion with EBITDA of $235 million, while last year, Smurfert Kappa had revenues of about $12 billion and EBITDA of $2.4 billion. With the merger, Smurfert Westrock's revenue will reach $34 billion and EBITDA will be $5.5 billion.
Ken Bowles' journey and background
Ken Bowles shares his journey from a career in accountancy to becoming the CFO of Smurfert Kappa. Accountancy was a natural choice for him due to his aptitude for numbers. He started working early to support himself through college and learned important lessons from various jobs. He joined Smurfert in 1994 and his commitment and resilience helped him grow within the company.
The importance of people and leadership
Ken Bowles emphasizes the significance of people in an organization and the role of leadership. He believes that great leaders focus on their team and create an inclusive and supportive culture. Building relationships, understanding individuals' strengths, and giving people the freedom to grow and make mistakes are key aspects of effective leadership. He also emphasizes the importance of diversity, talent development, and maintaining a sustainable and inclusive workforce.
In this episode of the EY CFO Outlook podcast, Ken Bowles of Smurfit Kappa Group discusses the Irish packaging company's recent merger announcement and what it means for their growth. Also, as he approaches almost 30 years with the company, he talks about why people are at the heart of a successful business and how Smurfit Kappa's focus on sustainability now means the same box is used 25 times.
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