* Q1 EBITDA up 32 percent to 243 million euros
* Rise in raw material, energy costs sharper than expected * Expects earnings growth, meaningful debt paydown in 2011
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DUBLIN, May 6 (Reuters) - Irish packaging group Smurfit Kappa posted a 32 percent rise in first-quarter core profit and said higher than expected input costs continued to rise in the second quarter.
Europe's leading producer of containerboard and corrugated packaging said on Friday earnings before interest, tax, depreciation and amortisation for the three months to end-March rose to 243 million euros ($339 million) on good demand growth.
Smurfit said while price recovery in its end markets continued to be achieved satisfactorily, rising raw material and energy costs resulted in two additional recycled containerboard price increases and would require further price recovery in the remainder of the year.
"The increase in raw materials, energy and other costs has proven sharper and more sustained than previously expected, thereby causing some near-term margin pressure," chief executive Gary McGann said.
Smurfit, which aggressively cut costs when demand started falling in 2008, said continued focus on operating efficiency should deliver earnings growth and meaningful debt paydown in 2011.
Analysts surveyed by Thomson Reuters I/B/E/S expected 2011 EBITDA to grow by 25 percent to 1.12 billion euros. (Reporting by Padraic Halpin; Editing by Dan Lalor) ($1 = 0.7158 euro)